Germany Targets €1B Gains as Crypto Tax Exemption Ends

- Germany aims to generate €1 billion annually by abolishing the one-year crypto tax exemption - Measure part of fiscal overhaul awaiting parliamentary approval this session Germany is set to raise at least €1 billion each year by ending its long-standing tax exemption on long-term cryptocurrency holdings, as the federal government moves to tighten fiscal policy and reduce the national budget deficit. Under a newly approved cabinet draft, all gains from crypto asset sales would become taxable regardless of how long investors hold them, which removes the current exemption for assets sold after one year. As a result, the proposal aligns Germany’s tax regime on digital assets with the European Union’s Markets in Crypto-Assets (MiCA) regulation, and lawmakers expect the measure to have an immediate budget impact if parliament passes it. On July 7, 2026, BTC Echo reported that Chancellor Friedrich Merz’s government had approved the draft bill eliminating the one-year exemption. Previously, this exemption allowed individual investors to sell cryptocurrencies tax-free if they held them for more than 12 months, but under the new policy authorities will tax all crypto profits. The government therefore aims to address the budget gap directly as part of a broader consolidation drive, and the finance ministry has stated that abolishing the exemption will align Germany with EU-wide crypto regulations and deliver significant additional revenue. However, the proposed change has sparked cross-party debate and remains politically sensitive as it moves to parliament for approval. As of 16:09 UTC on July 7, 2026, Bitcoin (BTC) is trading at $63,809.32, with a 0.28% change in 24-hour volume, while Ethereum (ETH) is trading at $1,793.14, with a -0.001% change, according to the latest market data.