Germany's government has included the imposition of a capital gains tax on cryptocurrencies as part of its fiscal savings measures for the 2027 federal budget, according to BeInCrypto. This move raises the possibility of abolishing the current tax exemption on capital gains for investors who hold cryptocurrencies for more than one year. The German Federal Ministry of Finance disclosed the plan in its monthly report, stating that the cryptocurrency tax adjustment is part of the fiscal consolidation policy agreed upon by the coalition government. Under Article 23 of the German Income Tax Act, capital gains from the sale of cryptocurrencies held for more than 12 months are not subject to tax. Conversely, sales within one year are subject to an income tax of up to 45%, but capital gains of less than 1,000 euros per year are tax-exempt.
