Germany’s Coalition Agreement: What It Means for Bitcoin and Crypto

Germany’s new coalition agreement between the CDU, CSU, and SPD has finally been presented, shedding light on the direction of the country’s policies—including those impacting Bitcoin and other digital assets.

In recent weeks, rumors circulated regarding a shift in how crypto assets like Bitcoin (BTC) would be taxed. Specifically, concerns grew that the SPD might eliminate the one-year tax exemption rule for long-term crypto holdings. This rule, still in effect, allows investors to sell their crypto tax-free after holding it for 12 months—unlike traditional assets like stocks, which are taxed at a flat 25%.

Both the Greens and the SPD have previously called this exemption unfair. They argue that digital assets should be taxed in line with equities to ensure consistency across financial markets. The Greens were especially vocal in 2024, stating that crypto investors enjoy unjust advantages over traditional market participants.

Coalition Deal Offers Few Clues on Crypto Direction

Despite the earlier debates, the finalized coalition contract makes no concrete mention of major tax reform related to cryptocurrencies. The only direct reference to the sector appears in line 1601, grouped under a general section about regulating crypto assets, the shadow banking system, and unregulated capital markets.

However, the language is vague. There are no specific proposals, laws, or planned changes related to Bitcoin or blockchain regulation. This signals that crypto does not currently occupy a central role in Germany’s financial policy agenda.

For crypto holders, that means no immediate changes to the tax structure. The one-year holding rule that exempts long-term capital gains remains in place. Furthermore, there’s no increase to the flat-rate withholding tax, giving investors additional relief—at least for now.

Tax Policy Remains Static, for Now

A more general mention of a financial transaction tax appears in lines 1495-1496, focusing on a possible future policy at the European level. Yet again, no direct connection to crypto is made, and the statement remains non-committal. Negotiations on this matter have been ongoing since 2011, with little progress to date.

So while crypto regulation in Germany remains unchanged for the moment, the pressure from the SPD and Greens suggests that future adjustments are still possible. For now, though, Bitcoin and other digital assets continue to benefit from favorable long-term tax treatment, making Germany one of the more crypto-friendly jurisdictions in Europe.