German Lawmakers Reject Green Party Push to Tax Long-Term Crypto Gains

• Germany’s Finance Committee rejected the Green Party’s crypto tax proposal.
• Current rules keep private crypto gains tax-free after a one-year holding period.
• The CDU/CSU said the bill would tax crypto differently from gold and foreign currencies.

Germany’s Finance Committee has rejected a Green Party proposal that would have ended the country’s one-year tax exemption for crypto assets. The decision keeps the current rule in place, allowing private investors to sell Bitcoin and other cryptocurrencies tax-free after holding them for more than 12 months.

The proposal from Bündnis 90/Die Grünen failed after most factions opposed or delayed support. Only Die Linke backed the bill while also warning that the draft carried administrative problems and lacked clear limits on loss offsets from crypto trades.

Crypto Tax Break Survives Vote

Under current German tax treatment, private crypto gains can remain tax-free when the asset has been held for longer than one year. That rule has helped Germany stand out in Europe, especially for long-term Bitcoin and crypto investors.

The Greens argued that the exemption no longer fits modern digital assets. Their position was that the rule was originally designed for physical items such as antiques kept for long periods, not highly liquid crypto tokens that can trade across global markets at any time.

However, the committee did not accept the proposal. CDU/CSU lawmakers said the draft would create new gaps rather than close old ones. Their objection focused on fairness, since crypto would be taxed differently from assets such as precious metals and foreign currencies.

AfD also rejected the bill, but from a broader fiscal position. The party argued that lawmakers should not keep searching for new tax sources and should instead limit taxation to fewer areas.

Related: Verus Bridge Exploiter Returns 4,052 ETH, Keeps 1,350 ETH as Bounty

Parties Split Over Timing

SPD did not fully reject crypto taxation as a policy goal. However, the party said it would wait for Finance Minister Lars Klingbeil to present his own proposals before backing specific legal changes.

That position leaves the debate open. The committee vote blocks the Green Party’s version, but it does not end the discussion over Germany’s crypto tax rules. Earlier reports said Klingbeil may revisit the one-year exemption as part of broader budget and tax planning.

Die Linke supported the Greens’ attempt to end what it sees as unfair treatment of crypto gains. Even so, the party pointed to weaknesses in the draft, including bureaucracy and the absence of a cap for offsetting crypto trading losses.

The Greens cited research from the Frankfurt School Blockchain Center, which estimated that ending the exemption could raise €11.4 billion in annual tax revenue. The party used a lower figure in its own calculations, saying it wanted to take a conservative approach. 

Related: ING Germany Opens Crypto ETN Trading to Retail Investors

Germany’s Crypto Market Still Expands

The tax vote comes as German retail access to crypto-linked products keeps growing. Earlier this year, ING Deutschland opened access to crypto ETNs for retail investors, allowing customers to gain exposure to Bitcoin, Ethereum, Solana, and crypto index products through regular securities accounts.

Those products do not require customers to manage wallets or private keys. Instead, investors can trade exchange-traded crypto products in a familiar brokerage structure. Deutsche Börse also lists a growing range of crypto ETNs on Xetra, with products tracking individual cryptocurrencies and baskets of digital assets. 

For German crypto users, the committee vote means the long-term holding rule remains unchanged for now. Investors still need to follow reporting rules and separate tax treatment for other crypto activities, including income from staking or lending. Still, the one-year exemption remains one of the most important features of Germany’s crypto tax system as lawmakers wait for the next proposal.