Germany is considering imposing a 30% tax on cryptocurrency profits!

Germany is heading towards a radical change in its cryptocurrency tax policy, as the government is considering imposing a flat tax rate of 30% on cryptocurrency profits, including Bitcoin, and eliminating the tax exemption after one year of holding digital assets, a rule that has made Germany an attractive destination for long-term investors.

This proposal is part of the final draft from the "Budget, Taxes, and Finance" working group in the current coalition negotiations and aims to unify the tax treatment of digital assets with that of traditional stocks, which could represent a significant shift in Germany's stance towards the cryptocurrency sector.

So far, German investors have not been taxed on profits from cryptocurrencies if they hold them for at least one year. However, documents obtained by BTC-ECHO reveal that the Social Democratic Party (SPD) is spearheading efforts for this change, despite not having mentioned it in its electoral program. The party has not issued any official comment on the proposal so far.

In contrast, the plan faces opposition from the Christian Democratic Union/Christian Social Union alliance, as some of its deputies believe that the cancellation of the one-year exemption is not a priority compared to other issues still under negotiation. The party leadership is expected to review the recommendations before entering the final round of crucial negotiations.

This discussion follows the German government’s sale of 50,000 Bitcoins in 2024, a move that sparked widespread criticism within the cryptocurrency community. As the political debate continues, the future of cryptocurrency taxation in Germany remains uncertain, with investors watching closely for any final decisions that may impact the crypto market in the country.

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