The crypto community in Germany is concerned after recent political developments suggested the end of one of the most advantageous tax benefits for Bitcoin holders. According to reports from Berlin, the SPD (Social Democratic Party) is expected to lead the Ministry of Finance in the next government, which could lead to significant changes in cryptocurrency taxation.
Bitcoin News: What is changing?
Currently, Germany offers one of the most attractive tax models for crypto in the world. If you hold Bitcoin or another cryptocurrency for more than a year, all profits from the sale are completely tax-exempt.
But this could soon change.
According to sources, the SPD plans to remove the one-year tax exemption. Under the new plan, crypto gains could become permanently taxable, regardless of how long you hold your coins. The proposal includes a flat tax rate of 25%, thus aligning crypto gains with the existing capital gains tax in Germany, known as 'Abgeltungssteuer'.
