Crypto Tax in Germany 2025 – Complete English Guide

Germany has clear crypto tax rules: gains are tax-free after 1 year, and there's a €1,000 annual exemption. This guide explains everything you need to know as an English speaker or expat living in Germany.

Key Facts: Crypto Tax in Germany

• Tax-free after 1 year: Gains from crypto held longer than 12 months are completely tax-free
• €1,000 annual exemption: Gains under €1,000/year from short-term trades are tax-free (from 2024)
• FIFO method: First coins bought are considered first sold
• Tax rate: Your personal income tax rate (14–45 %)
• Legal basis: § § 23 EStG (Income Tax Act) – "other economic assets"

What Triggers a Tax Event?

• Selling crypto for fiat (EUR, USD etc.)
• Swapping one crypto for another (BTC → ETH counts as a sale)
• Paying for goods or services with crypto
• Receiving staking rewards, mining income, airdrops (taxed as income)

Not a tax event: Buying crypto, transferring between your own wallets.

The 1-Year Holding Period Rule

This is one of the most favorable aspects of German crypto tax law. If you hold your Bitcoin, Ethereum or any other cryptocurrency for more than 365 days, any gain from selling is completely tax-free – regardless of the amount.

With FIFO, the earliest-purchased coins are considered sold first. This means strategic timing of purchases and sales can maximize tax-free gains.

€1,000 Annual Exemption (Freigrenze)

If your total short-term gains (held less than 1 year) are under €1,000 for the year, you pay no tax. Important: this is a threshold, not an allowance. If you gain €1,001, all €1,001 is taxable – not just the €1 above the threshold.

Staking and Mining Income

Staking rewards, lending interest, and airdrops are taxed as "other income" (§ § 22 EStG) at your normal income tax rate. They are valued at the market price when received. A small exemption of €256/year applies to "other income".

When you later sell staked tokens, any additional gain (above the value at receipt) is also taxable as a capital gain.

How to Report: Anlage SO

Short-term crypto gains are reported in Anlage SO (Supplementary Schedule S) of the German tax return (Einkommensteuererklärung). You need to report:

• Total proceeds from crypto sales
• Total acquisition costs
• Net gain or loss

CoinTaxReporting generates a ready-to-use Anlage SO extract with all the required figures.

Filing Deadlines

• Tax return due: July 31 of the following year (e.g., 2024 taxes due July 31, 2025)
• With a tax advisor: extended to February 28 of the year after that

Hinweis: Dieser Artikel dient ausschließlich zur allgemeinen Information und stellt keine Steuerberatung dar. Für individuelle Steuerberatung wende dich an einen zugelassenen Steuerberater.