An attempt to raise taxes on cryptocurrency owners in Germany has failed. The bill, put forward by the Greens party, did not gain enough support in the Bundestag, the country’s lower house of parliament. Only the Left Party backed it.
The proposed legislation aimed to end tax-free profits from digital currencies like Bitcoin and Ethereum. Under current German rules, capital gains from selling coins held for more than a year are not taxed. This holding period rule stays in place for now.
Why the bill faced opposition
The Greens argued that crypto assets should be treated similarly to other investments. But critics said the proposal would have taxed crypto investors more than those who invest in regular stocks. Lawmakers from the CDU/CSU alliance, led by Chancellor Friedrich Merz, said the Greens’ draft wasn’t closing any loopholes. They feared it would create new ones by taxing cryptocurrencies differently from traditional assets like precious metals or foreign currencies.
The far-right Alternative for Germany (AfD) opposed the bill too. They said the government should focus on taxing fewer things, not on finding new revenue sources. They suggested limiting the state to core functions like security and justice.
The Social Democratic Party (SPD), the junior coalition partner, generally supports heavier crypto taxation. But its lawmakers want to wait until Finance Minister Lars Klingbeil presents his own proposals.
Arguments for the tax change
While introducing the bill, the Greens claimed the tax exemption for crypto gains was originally meant for other assets, like antiques sold after long storage. They hoped to boost budget revenues by at least half of the expected €11.4 billion in additional tax income, based on estimates from the Frankfurt School of Finance.
The Left Party supported the bill despite its weaknesses, such as increased bureaucracy and no limit for offsetting losses from crypto transactions. They insisted that existing injustices in crypto taxation must be overcome.
Germany still tightening crypto rules
Even without the tax changes, Germany has increased pressure on crypto investors to declare their profits. Earlier this year, new measures were introduced to improve tax return accuracy. Crypto service providers must now collect and submit client details and transaction information to the tax office. This requirement comes from enforcing the EU’s DAC8 directive, which took effect on January 1, 2026.
So while the push for higher crypto taxes failed for now, the regulatory environment is still getting stricter.
