AfD state-election win raises pressure on Germany’s Bitcoin tax fight
The crypto-tax discussion in Germany has become significantly more political. The right-wing party Alternative for Germany (AfD), which has made headlines with its call to maintain the low 12-month tax that Bitcoin enjoys, secured a victory in the recent state election in Saxony-Anhalt.
While the outcome in the state does not trigger any changes to the federal law or add any seats to the AfD in the Bundestag, it gives the AfD a platform for its agenda as Berlin gears up for new tax regulations in a market that generated $24.1 billion in on-chain taxable activity in 2025, according to Chainalysis’ estimates.
The AfD gathered 43.8% of party list votes and 44.3% of the first votes from 2661 polling districts, while Chancellor Friedrich Merz’s CDU party dropped to 17.2% of the party-list votes, a decline of almost 20 percentage points, compared to 2021. Voter turnout increased by 17.5 points to 77.8%.
A far-right first place that rattled Berlin
Reuters reports that Merz ruled out any collaboration with AfD, declaring that the outcome made the CDU shaken “to its very foundation.”
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