Germany’s Bitcoin tax fight heats up after AfD election victory

Germany’s debate over Bitcoin taxation has gained a new political dimension after the Alternative for Germany won nearly 44% of the vote in Saxony-Anhalt, months after the party opposed plans to remove the country’s one-year crypto tax exemption. Summary The AfD won nearly 44% of the vote in Saxony-Anhalt and secured 39 of the state parliament’s 83 seats. The party has opposed efforts to remove Germany’s one-year tax exemption for privately held Bitcoin and other crypto assets. Germany’s government plans new crypto tax legislation for 2027, although the final mechanism has not yet been disclosed. Chainalysis estimated Germany generated $24.1 billion in potentially taxable on-chain crypto activity in 2025. Reuters reported that the AfD secured 39 of the 83 seats in the state parliament, leaving the party three seats short of an outright majority but well ahead of Chancellor Friedrich Merz’s Christian Democratic Union. The AfD received 43.8% of party-list votes and 44.3% of first votes across 2,661 polling districts. The CDU fell to 17.2% of party-list votes, almost 20 percentage points below its result in the 2021 election, while voter turnout reached 77.8%, up 17.5 percentage point...