Crypto Taxes in Germany: The Complete Guide (2025)

AI summary

Germany treats cryptocurrency as a private asset, making it legal and subject to taxation under certain conditions. Profits are tax-free if the crypto is held for over 12 months, but selling, trading, or earning crypto within a year is taxable at progressive income tax rates. The article explains key rules for 2025, reporting requirements, calculation methods, and highlights the importance of accurate record-keeping and compliance with evolving EU regulations.

Cryptocurrency is legal in Germany and recognized by BaFin. The Finanzamt treats it as a private asset, meaning profits are taxable under certain conditions. Thanks to the one-year exemption rule, gains from crypto held over 12 months are tax-free. Still, knowing when taxes apply and how to report them is essential. This guide covers the key rules for crypto taxation in Germany in 2025.

Do You Pay Tax on Crypto in Germany?

The short answer is yes, but not always. Cryptocurrency taxation in Germany depends on how long you hold your assets and what kind of activity you’re engaged in. German tax law classifies cryptocurrencies, such as Bitcoin and Ethereum, as private assets (Privatvermögen) rather than financial instruments. This classification means that profits from crypto sales can qualify for private sale exemptions if held for a sufficient period.

When Crypto Is Taxable

You’ll owe taxes if you:

• Sell crypto within 12 months of purchase for a profit
• Trade one cryptocurrency for another (e.g., BTC → ETH)
• Use crypto to buy goods or services
• Earn crypto through mining, staking, or airdrops

Each of these actions counts as a taxable event, meaning you’ve realized a gain that you must declare in your annual tax return.

When Crypto Is Not Taxable

Some actions are completely tax-free, including:

• Buying crypto with fiat currency (like euros)
• Holding crypto in your wallet
• Transferring crypto between your own wallets

As long as you haven’t “sold” or “exchanged” crypto for something else, there’s no taxable event. This clarity is part of what makes the German crypto tax rules both investor-friendly and straightforward.

Crypto Capital Gains Tax in Germany

Your crypto capital gains tax depends on how long you hold your assets and your total income level.

The 1-Year Rule (Tax-Free Holding Period)

Germany’s standout feature is the 1-year exemption rule. If you hold crypto for more than 12 months, your profits are completely tax-free, regardless of value.

If you sell before the one-year mark, profits are taxable only if your total gains from private sales (including other assets) exceed €600 per year. This rule rewards long-term holders and distinguishes Germany from countries like the UK or France, where crypto remains taxable even after several years. For comparison, refer to our guides on crypto taxes in the UK, France, and the USA.

Capital Gains Tax Rates

Germany doesn’t apply a fixed crypto tax rate. Instead, taxable gains are added to your personal income and taxed progressively:

If you sell crypto within the first year, your profit is added to your total taxable income and taxed accordingly.

Examples

Example 1: Tax-Free Gain

You bought 0.1 BTC for €5,000 in 2023 and sold it for €10,000 in 2025, 13 months later. Because you held it for more than one year, your €5,000 profit is tax-free.

Example 2: Taxable Gain

You bought ETH worth €2,000 and sold it for €4,000 six months later. Your profit is €2,000. Since it exceeds the €600 exemption, it’s fully taxable at your personal income tax rate.

Income Tax on Crypto in Germany

Not all crypto profits come from trading. If you earn crypto through mining, staking, yield farming, or airdrops, it’s treated as income and taxed when received.

Mining and Staking

• Mining: Considered a commercial or self-employment activity. You’ll pay income tax on the fair market value of the coins at the time you receive them.
• Staking: Usually treated as “other income” for private investors. If you operate it as a business, it falls under self-employment tax rules.
• Airdrops and rewards: Taxed as income at the moment you receive them.

Later, when you sell those mined or staked coins, you can still benefit from the 1-year exemption, but only if you hold them for more than 12 months after earning them.

Income Tax Rates

Income from cryptocurrency is subject to the same progressive tax rates as regular income, ranging from 14% to 45%. Be sure to track your receipts and fair-value calculations carefully, especially if you’re earning through multiple wallets or platforms. If you’re just starting with mining or staking, check our guide to the best crypto exchanges in Germany for compliant and easy-to-use platforms that simplify record-keeping.

How to Calculate Crypto Taxes in Germany

Germany uses the FIFO (First In, First Out) method to calculate taxable gains, meaning the first crypto you bought is the first considered sold.

1. Identify the acquisition cost: How much you paid for the crypto in euros.
2. Determine the sale price: The euro value at the time you sold or exchanged it.
3. Subtract costs: Sale price – purchase price = profit/loss.
4. Apply exemptions: If held for more than 12 months, no tax applies. If sold within 12 months and the profit exceeds €600, it becomes taxable.
5. Add taxable gains to income: Report on your annual return (Einkommensteuererklärung).

Example: You bought 1 ETH for €1,200 in February 2024 and sold it for €2,200 in October 2024. Profit = €1,000. Since you sold within a year and exceeded €600, the full €1,000 is taxable.

Helpful Tools: Manual tracking can be tedious. Tools like CoinTracking, Koinly, Blockpit, or Accointing automate imports, apply FIFO rules, and generate ELSTER-ready reports for the Finanzamt.

How to Report Crypto Taxes to Finanzamt

You must report all taxable crypto activity to the Finanzamt in your annual tax return. Depending on how you earn or sell crypto, the forms you’ll need:

• Anlage SO: for private sales (selling within 12 months)
• Anlage KAP: for capital gains on securities (if applicable)
• Anlage S: for self-employment income (mining or business staking)

Filing is done online through the ELSTER portal, Germany’s digital tax platform. Include clear documentation for every crypto transaction.

Supporting Documents to keep or attach:

• Exchange transaction histories
• Wallet addresses and transfer logs
• Receipts or screenshots of purchases
• Reports from crypto tax software

Accurate records are vital if the Finanzamt requests proof of your calculations. If you prefer self-custody, the Tangem cold wallet helps track on-chain transactions automatically, making tax documentation easier and more secure.

Deadlines for Crypto Taxes in Germany (2025)

The 2024 tax year encompasses crypto transactions from January 1, 2024, to December 31, 2024.

• Filing deadline: July 31, 2025
• With a tax advisor: Extended to February 28, 2026
• Late filing: May trigger fines or interest charges

Mark your deadlines early or set up reminders in your tax software to avoid penalties.

Best Tools to Track and File Crypto Taxes in Germany

Crypto tax software saves time and ensures accuracy. These tools integrate with exchanges, wallets, and DeFi platforms to automatically calculate gains and losses.

Top German-friendly options:

1. CoinTracking – Based in Germany, integrates directly with ELSTER.
2. Blockpit – EU-compliant and supports MiCA standards.
3. Accointing – Intuitive dashboard for beginners.
4. Koinly – Connects to global exchanges and wallets.
5. TaxBit (EU) – Designed for professionals managing large portfolios.

These platforms provide automatic transaction imports, gain/loss tracking, and Finanzamt-ready export reports.

Common Mistakes When Paying Crypto Taxes in Germany

Even seasoned investors slip up. Avoid these frequent errors:

1. Forgetting crypto-to-crypto trades: Every exchange is taxable, not just conversions to euros.
2. Misunderstanding the 1-year rule: The holding period resets every time you trade, including stablecoins.
3. Ignoring small profits: Combined annual gains over €600 become taxable.
4. Skipping staking or mining income: You must declare these as income.
5. Poor record-keeping: Missing logs can result in inaccurate tax estimates.

Staying organized with tools or wallets like Tangem Wallet ensures your transaction history is complete and ready for the Finanzamt.

Future of Crypto Taxation in Germany

Crypto taxation is evolving as Germany adapts to EU MiCA (Markets in Crypto-Assets) regulations. These aim to harmonize crypto laws and reporting standards across the EU. What to expect:

• EU-wide standardization: MiCA could change how exchanges and wallets handle tax reporting.
• Possible updates to the 1-year rule: Lawmakers may consider adjusting or refining it.
• More data sharing: Cooperation among the IRS, EU tax agencies, and the Finanzamt is expanding to increase transparency.

Reforms are gradual, but staying informed helps ensure ongoing compliance.

FAQ for Crypto Taxes in Germany

Do you pay tax on crypto in Germany?

Yes. Selling, trading, or earning crypto within a year can trigger taxation. Long-term holdings over 12 months are tax-free.

What is the crypto tax rate in Germany?

It depends on your personal income, ranging from 14% to 45%.

What is the 1-year rule for crypto in Germany?

Hold crypto longer than 12 months to sell tax-free.

How do I calculate crypto taxes in Germany?

Use FIFO, subtract your purchase price from the sale price, apply the €600 exemption, and report the result as income if taxable.

How do I report crypto to Finanzamt?

File through the ELSTER portal using the relevant forms (Anlage SO, KAP, or S).

Final Thoughts

Germany offers one of the most investor-friendly crypto tax frameworks globally. Long-term holders benefit from complete tax exemption, while traders and miners can easily calculate and declare their taxes with the right tools. Whether you’re managing your assets with a Tangem cold wallet, investing through regulated exchanges, or just starting your crypto journey, understanding crypto tax in Germany helps you stay compliant and confident.