Germany to seize luxury cars, watches in new tax‑evasion crackdown

The German government has unveiled a 26‑point action plan to curb tax evasion and money‑laundering as part of its 2027 budget, which foresees €555 billion in spending and €200 billion of borrowing. Justice Minister Stefanie Hubig and Finance Minister Lars Klingbeil presented the measures, which include creating a "Tax and Financial Crime Joint Center" within the customs authority, staffed by 1,500 new employees and equipped with an AI‑driven data‑analysis unit to trace complex corporate structures and front‑persons.

The plan ends the long‑standing "self‑reporting" immunity for tax offences, raises the maximum prison term for serious tax crimes from ten to fifteen years, and sets a minimum one‑year sentence for organized crime. Customs officials will be empowered to seize suspect assets for up to 180 days, targeting items such as Porsche cars and Rolex watches, with owners required to prove lawful acquisition. Additional provisions revoke a tax exemption for crypto holdings held over a year, and impose cash‑register obligations on high‑turnover merchants from 2028. The government expects the measures to generate roughly €1 billion in additional revenue in the first year.