Crypto Taxes Germany

Q: How is crypto taxed in Germany?

Under German income tax law (§23 EStG), crypto disposals are classified as private sales transactions (Privatveräußerungsgeschäft). Gains on crypto held for less than 1 year are taxed at your personal income tax rate (0-45%). Gains on crypto held for more than 1 year are tax-free. This is one of the most favourable major-market regimes — a direct legacy of treating crypto as property, not currency.

Q: What is the €1,000 allowance?

As of the 2024 tax year, the annual allowance for private sales transactions was raised from €600 to €1,000. Gains under €1,000 per year (in total, across all crypto AND non-crypto private sales like physical gold) are tax-free. Above that, the full gain is taxable (not just the amount above the threshold — be careful with this structure). Verify the current year's threshold with the BMF.

Q: Does staking extend the 1-year holding period?

This was a major question from 2018-2023. BMF (Federal Ministry of Finance) 2022 guidance clarified: staking does NOT extend the holding period to 10 years. The 1-year rule applies to staked tokens. Staking rewards themselves are taxable as ordinary income at receipt-time fair market value, but the underlying staked tokens retain their original holding period.

Q: How is DeFi lending taxed?

If you lend crypto and receive interest: the interest is ordinary income at receipt. The underlying lent crypto retains its holding period for the 1-year rule (post-2022 BMF guidance). If you use a platform like Aave where your crypto is tokenised into aUSDC or similar, there is ambiguity on whether the tokenisation itself triggers a disposal — conservative approach treats it as a disposal + re-acquisition.

Q: What records do I need?

For each crypto transaction: date, transaction type (buy, sell, swap, staking reward, loan interest, gift received), asset, quantity, EUR value at transaction time, counterparty (exchange/wallet address), fees paid. For FIFO calculation (default method), you need a chronological log. Export monthly from exchanges; tools like CoinTracking, Accointing, Blockpit automate this specifically for German FIFO.

Q: Do I have to report crypto in Germany if I don't sell?

No. Holding crypto does not trigger tax. Only disposal (sale, swap, purchase with crypto) triggers the tax event. However, staking rewards and lending interest ARE income on receipt regardless of whether you sell. You must declare these on your annual Einkommensteuererklärung.

Q: Where do I report crypto in the tax return?

For private sales transactions (crypto gains under 1 year): Anlage SO. For income from staking/lending: Anlage KAP or Anlage SO depending on nature. For businesses: Anlage G. Many German-specific tax tools (CoinTracking.info, Blockpit) generate a pre-filled Anlage SO / KAP export. If your volume or complexity is high, engage a Steuerberater (tax advisor) familiar with crypto.

The 1-year holding rule, €1,000 allowance, staking treatment, recordkeeping.

Tax year 2025 · filing year 2026

Reviewed by Stephan Kulik · Last updated: 2026-04-21 · How we rank

Short answer

Germany taxes crypto under Sec 23 EStG (Privatveräußerungsgeschäft — private sales transactions). Gains on crypto held > 1 year are tax-free. Gains on crypto held < 1 year are taxed at your personal income rate (0-45%). Annual allowance: €1,000 (raised from €600 in 2024). Staking rewards = ordinary income at receipt; staking does not extend the 1-year rule. This is general information, not tax advice — consult a qualified Steuerberater.

The German crypto tax regime

Germany treats crypto as a private asset (Wirtschaftsgut), not currency or security. Disposals fall under Sec 23 EStG on private sales transactions. This is materially more favourable than many EU peers (France, Italy, Spain all tax crypto more aggressively).

The 1-year rule

Crypto held for 365 days or longer can be sold tax-free. The clock starts on acquisition date (your FIFO cost basis identifies which unit is being disposed of). For small/medium-term traders, this makes Germany one of the most crypto-friendly tax jurisdictions globally.

The €1,000 allowance

Total private-sale gains under €1,000 per tax year are exempt. Once you exceed €1,000, the FULL gain is taxable (not just the portion above the threshold — this is a Freigrenze, not a Freibetrag).

Trading income vs private sales

Heavy-frequency trading can reclassify activity as commercial (gewerbliche Einkünfte). Threshold is fact-pattern-based — the Federal Fiscal Court has set indicators including frequency, volume, use of borrowed capital, and whether the activity approaches a business operation. If reclassified, the 1-year exemption does not apply and commercial tax rules (Gewerbesteuer + Einkommensteuer) apply. Most retail investors do not cross this threshold; active day-traders may.

Specific activities

Buying and selling (spot)

Buy BTC at €30k, sell 13 months later at €50k: €20k gain is tax-free (1-year rule). Sell 11 months later at €50k: €20k gain is taxable at your personal income rate.

Crypto-to-crypto swaps

A swap is a disposal. If you swap BTC for ETH within 1 year of BTC acquisition, the BTC disposal is a taxable event at EUR fair market value on swap date. The new ETH cost basis is EUR-denominated at that moment, and its 1-year clock starts fresh.

Staking rewards

Staking rewards are ordinary income (Sonstige Einkünfte) at EUR fair-market value on receipt date. BMF 2022 guidance clarified that staking does NOT extend the 1-year holding period of the staked tokens (this was a prior open question). When you later sell the rewards, the 1-year rule applies from the receipt date.

Lending / earn products (Nexo, Crypto.com, Ledn)

Interest income from lending is ordinary income at receipt. The underlying lent crypto retains its original holding period. Some ambiguity exists for protocols that tokenise your position (Aave's aUSDC) — conservative treatment is disposal + re-acquisition at swap time.

DeFi liquidity provision

LP tokens (Uniswap V3 positions, Curve pools) represent a claim on underlying assets. Providing liquidity can be treated as a swap at the time of deposit. Fees earned are ordinary income. Removing liquidity is another swap. This area has the most fact-pattern complexity in German tax practice — engage a Steuerberater if you're active in DeFi.

Airdrops, forks, mining

Airdrops received without action: typically not immediately taxable (no acquisition cost, no service provided). Claimed airdrops requiring action: ordinary income at receipt FMV. Forks: generally not immediately taxable; new coin has zero cost basis. Mining: commercial income if large-scale; private income if occasional.

Recordkeeping

You need, for every transaction:

Date and time
Transaction type
Asset
Quantity
EUR value at transaction time (from exchange data or independent price oracle)
Counterparty identifier (exchange name, wallet address)
Fees paid

Germany uses FIFO (first-in, first-out) by default for cost-basis calculation. Most exchanges export CSV monthly. Third-party tools: CoinTracking.info (strongest German coverage), Blockpit, Accointing, Koinly (all with German FIFO support and Anlage SO / KAP pre-fill).

Where to report

Anlage SO — private sales transactions (most crypto disposals)
Anlage KAP — capital income (some lending interest depending on structure)
Anlage G — commercial income (if reclassified as business activity)

Where to hold crypto in Germany

Germany has specific regulatory preferences for crypto custodians. See best crypto banks in Germany, best crypto banks in Europe, MiCA-licensed crypto banks, and MiCA compliance guide.

Disclaimer

This page is general information only. It is not tax advice. German tax law changes, BMF guidance evolves, and your specific fact pattern may yield different outcomes. Consult a qualified Steuerberater (tax advisor) familiar with crypto before filing. See our terms.

Frequently asked questions

How is crypto taxed in Germany? +

Under German income tax law (§23 EStG), crypto disposals are classified as private sales transactions (Privatveräußerungsgeschäft). Gains on crypto held for less than 1 year are taxed at your personal income tax rate (0-45%). Gains on crypto held for more than 1 year are tax-free. This is one of the most favourable major-market regimes — a direct legacy of treating crypto as property, not currency.

What is the €1,000 allowance? +

As of the 2024 tax year, the annual allowance for private sales transactions was raised from €600 to €1,000. Gains under €1,000 per year (in total, across all crypto AND non-crypto private sales like physical gold) are tax-free. Above that, the full gain is taxable (not just the amount above the threshold — be careful with this structure). Verify the current year's threshold with the BMF.

Does staking extend the 1-year holding period? +

This was a major question from 2018-2023. BMF (Federal Ministry of Finance) 2022 guidance clarified: staking does NOT extend the holding period to 10 years. The 1-year rule applies to staked tokens. Staking rewards themselves are taxable as ordinary income at receipt-time fair market value, but the underlying staked tokens retain their original holding period.

How is DeFi lending taxed? +

If you lend crypto and receive interest: the interest is ordinary income at receipt. The underlying lent crypto retains its holding period for the 1-year rule (post-2022 BMF guidance). If you use a platform like Aave where your crypto is tokenised into aUSDC or similar, there is ambiguity on whether the tokenisation itself triggers a disposal — conservative approach treats it as a disposal + re-acquisition.

What records do I need? +

For each crypto transaction: date, transaction type (buy, sell, swap, staking reward, loan interest, gift received), asset, quantity, EUR value at transaction time, counterparty (exchange/wallet address), fees paid. For FIFO calculation (default method), you need a chronological log. Export monthly from exchanges; tools like CoinTracking, Accointing, Blockpit automate this specifically for German FIFO.

Do I have to report crypto in Germany if I don't sell? +

No. Holding crypto does not trigger tax. Only disposal (sale, swap, purchase with crypto) triggers the tax event. However, staking rewards and lending interest ARE income on receipt regardless of whether you sell. You must declare these on your annual Einkommensteuererklärung.

Where do I report crypto in the tax return? +

For private sales transactions (crypto gains under 1 year): Anlage SO. For income from staking/lending: Anlage KAP or Anlage SO depending on nature. For businesses: Anlage G. Many German-specific tax tools (CoinTracking.info, Blockpit) generate a pre-filled Anlage SO / KAP export. If your volume or complexity is high, engage a Steuerberater (tax advisor) familiar with crypto.