Germany's Bitcoin (BTC) Tax-Free Rule Ends December 31, 2026

Germany plans to end its tax-free Bitcoin (BTC) benefit for investors who purchase after December 31, 2026. Under a draft law, profits from crypto sales will be taxed at a flat rate of 25%, with an annual exemption of €1,000 ($1,163) for gains. This change could generate an expected €160 million ($186.2 million) in tax revenue by 2028, rising to €350 million ($407.35 million) by 2031. Investors holding crypto for 12 months will face taxation on gains for the first time, potentially impacting market behavior as investors rush to buy before the deadline.