Breaking Bitcoin News: Germany Set to End Bitcoins Tax-Free Holding Period as SPD Takes Over
The crypto community in Germany is worried after recent political developments suggest the end of one of the most favorable tax advantages for Bitcoin holders. According to reports from Berlin, the SPD (Social Democratic Party) is expected to head the finance ministry in the upcoming governmentbringing with it significant changes to how crypto is taxed.
Bitcoin News: Whats Changing?
Germany currently offers one of the most attractive crypto tax setups in the world. If you hold Bitcoin or any cryptocurrency for more than one year, any profits made from selling are completely tax-free.
But that might be about to change.
Sources say the SPD is planning to eliminate the one-year tax-free rule. Under the new plan, crypto gains could become permanently taxableregardless of how long you hold your coins. The proposal suggests a flat 25% tax rate, aligning crypto profits with Germanys existing capital gains tax known as Abgeltungssteuer.
Bitcoin Capital Gain Tax: Crypto Community Reacts
The move has sparked intense backlash from both retail investors and tax consultants, with many saying it will stifle innovation and make Germany less attractive for crypto users and builders. Some fear this could drive investors to other European countries with more favorable tax laws, like Portugal or Switzerland.
Others, however, say the change brings crypto into the same legal framework as traditional financesomething that might be necessary for mainstream adoption.
Implications for Bitcoin & Long-Term Investors
If this tax reform goes through, HODLing Bitcoin in Germany will no longer be a safe tax-free strategy. This could lead to short-term volatility in the market, as investors adjust their strategies. On the flip side, it may push more users to embrace regulated, tax-efficient crypto products or even explore offshore solutions.
Read more: https://cryptoticker.io/en/germany-end-bitcoin-tax-free-holding-period-as-spd-takes-over/
Text source: CryptoTicker
