SPD attacks crypto investors: Deadline to fall
Background: What has applied so far
Anyone who had previously held Bitcoin, Ethereum or other cryptocurrencies for at least a year could rejoice: profits from the sale were tax-free – a real locational advantage for Germany in an international comparison.
This so-called one-year period protects long-term investors and has so far been a rare signal of crypto openness from a German perspective.
However, this regulation is now at the center of the coalition negotiations to form a government – and could soon be abolished.
What should change?
As part of the talks to form a government, there are discussions about scrapping the one-year time limit for cryptocurrencies. In future, profits are to be taxed at a flat rate as with shares – at around 30% withholding tax, regardless of how long the coins have been held.
The SPD is actively introducing this proposal into the negotiations. The aim is to establish equal tax treatment and close regulatory gaps.
Parties at a glance: Who stands for what?
SPD: Supports the abolition of the one-year deadline and would like to identify and close additional gaps in crypto regulation.
CDU/CSU: Has so far kept a rather low profile, but is willing to talk.
Voices close to the FDP warn of the negative effects on innovation, start-ups and investors.
The discussion is therefore open – but the course is pointing in the direction of stricter crypto taxation.
What does this mean for Germany as a business location?
Germany is already known for its rather cautious digital policy and complex tax framework. The one-year deadline has so far been one of the few advantages for investors.
A discontinuation could result in:
Fewer long-term investments in crypto projects
Less attractive location for companies and developers
Relocation of capital and innovation abroad
International comparison: other countries focus on progress
While Germany is discussing tightening the rules, other countries are doing the opposite and actively strengthening their locations:
Czech Republic:
Has introduced a three-year holding period. Anyone who holds crypto assets for this long can realize profits tax-free. Objective: to create planning security for investors and promote investment.
USA:
Several states offer tax advantages for crypto companies – e.g. Wyoming, where blockchain companies are legally treated like traditional businesses, with specific banking licenses for crypto companies.
Singapore:
Considered one of the most crypto-friendly locations in the world. Capital gains on cryptocurrencies are tax-free, and the city state also specifically promotes blockchain innovations through government funding programs and sandbox models.
Portugal:
Until the end of 2022, Portugal was a tax haven for many crypto investors – crypto profits made by private individuals were completely tax-free there. Since January 2023, short-term gains (held for less than 1 year) are now taxable (28%), while long-term gains (held for more than 1 year) remain tax-free.
What you should know now as an investor
Nothing has been finally decided yet – but the tone of the discussion is clear: crypto will come more into focus in terms of taxation and regulation.
If you are investing in digital assets or planning to start, you should:
- Regularly monitor political developments
- Check tax implications at an early stage
- Strategically incorporate possible changes into your financial planning
Our tip:
Now is the right time to set up your crypto portfolio in a tax-smart way. The rules could change soon – we’ll help you be prepared.
Get advice and find out how you can structure your crypto investments in a legally compliant and tax-optimized way – before it’s too late.
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