Germany's 2027 Budget Targets Crypto Tax Exemption

The proposal has been pushed by members of the SPD's Seeheimer Kreis since late 2025. They argue that capital gains should be taxed consistently regardless of holding period. The crypto industry has pushed back. Matthias Steger, a board member of the Bitcoin Bundesverband, warned that taxing every transaction could make small payments impractical and drive investors and companies to jurisdictions like Portugal, the only other EU country offering a full one-year exemption.

The German parliament has rejected similar measures before. A Green Party initiative to remove the exemption failed in May 2026. The inclusion of crypto taxation in the 2027 budget plan signals renewed political momentum. Austria already taxes new crypto holdings at a flat 27.5%, and Germany's approach could influence other EU states as CARF and DAC8 reporting rules take effect.

The immediate risk for German residents with significant crypto holdings is political, not legislative. No draft bill has been published. The budget negotiation process will run through the summer and into the autumn. A quick parliamentary defeat is possible. A protracted debate that creates uncertainty for a year or more is equally plausible. Traders outside Germany should watch the Bundestag's finance committee schedule as an early signal of whether the proposal has real traction.