Germany delays proposed Bitcoin tax reform

Proposed reforms to abolish the one-year holding period for Bitcoin and other cryptocurrencies in Germany have faced delays. The plan, which would subject crypto gains to a flat 25 percent withholding tax regardless of how long the assets are held, was not addressed by the federal cabinet as scheduled and remains in departmental coordination.

The draft proposal suggests that while existing holdings might be protected, new acquisitions from 2027 would be taxed differently. This has sparked significant opposition, including a petition signed by over 44,000 people and criticism from the CDU Economic Council. Critics argue the reform could increase bureaucracy and question the projected revenue increases, which are estimated to reach approximately 350 million euros by 2031.

The debate has expanded beyond cryptocurrency, touching on the tax treatment of gold and the principle of equal treatment for various private investment forms.