Crypto Tax Guide Germany for 2025: Kryptowährung Steuer

Yes. For individuals, crypto is “private money” (Privatvermögen) under §23 EStG. Gains on disposals within 12 months are taxable as other income. Gains after 12 months are tax-free. Businesses are always taxed on crypto profits.

• Short-term gains: added to your taxable income and taxed at 14-45% plus 5.5% solidarity surcharge on the calculated tax; church tax may apply.

• Tax-free allowance: the first €600 of total short-term gains per calendar year is exempt.

• Long-term gains: 0% tax when the holding period exceeds 12 months.

Learn more about crypto tax free countries.

Buying and holding cryptocurrency

Purchases with euros are not taxed. Hold at least 12 months to qualify for the full exemption on gains.

Selling cryptocurrency

Selling or spending crypto within 12 months triggers income tax on the net gain. After 12 months the gain is tax-free.

Mining and staking

Rewards are taxable income at euro market value on the day credited. The one-year tax-free holding period applies from that date.

Crypto-to-crypto trades taxed

Swapping BTC for ETH counts as two disposals. Gains within 12 months are taxable. After 12 months they are exempt.

Receiving cryptocurrency as payment

Salary or freelance fees paid in crypto are income subject to payroll tax (PAYE) or self-employment tax at receipt.

There is no separate capital-gains tax: taxable crypto gains are included in your Einkommensteuer assessment. Use the First-In-First-Out (FIFO) method per BMF letter of 10 May 2022 when specific units cannot be identified.

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Short-term crypto losses can offset other short-term crypto gains in the same year. Unused losses carry forward and can offset future taxable crypto gains but not wage income. Long-term disposals do not create deductible losses.

Most airdrops are treated as “other income” (§22 Nr 3 EStG) at market value when received. Dispose within 12 months and any gain is taxable. After 12 months, it is tax-free.

Revenue from lending, liquidity pools, or yield farms is ordinary income at receipt. Token swaps inside DeFi protocols follow the same 12-month rule for gains. Gas fees are deductible acquisition or disposal costs.

Companies pay 15% corporate-income tax plus 5.5% solidarity surcharge on that tax, and trade tax of roughly 14% (rate varies by municipality). The 12-month exemption does not apply to business assets.

Custody or exchange services require a BaFin licence under the German Banking Act. VASPs must abide by AML and travel-rule reporting. Private investors face no registration, but exchanges share data with tax authorities.

If trading frequency and organisational effort indicate a commercial activity, profits are business income. Otherwise they remain private disposals under §23 EStG. Costs such as electricity for mining are deductible only against taxable income.

Paying with crypto constitutes a disposal. VAT is due on the underlying good or service, not on the crypto itself.

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• Hold each coin at least 12 months to use the full tax exemption.

• Keep annual gains under €600 if selling within 12 months.

• Harvest crypto losses inside the same calendar year to offset taxable gains.

• Holding crypto longer than 12 months before disposal.

• Total annual short-term gains up to €600.

• Moving coins between wallets you own.

Retain purchase and sale dates, euro values, wallet addresses, and exchange statements for ten years as required by §147 AO.

Learn how to reduce your crypto taxes.

• July 31: file the prior year’s Einkommensteuererklärung.

• End of February: extended deadline if a certified tax adviser files.

• Back taxes plus interest accrue if you miss these dates.

Keep CSV exports, invoices, on-chain transaction IDs, and evidence of mining costs (electricity bills, hardware invoices) to substantiate every figure on your return.

Use ELSTER online. Report taxable gains in Anlage SO, mining or staking income in Anlage S (sole trader) or Anlage G (freelance), and payroll-crypto in Anlage N. Attach a FIFO worksheet if requested.

Convert each transaction to euros on the day it occurs, apply FIFO, group by holding period, subtract allowable costs, and apply the progressive income-tax table and solidarity surcharge.

Use our free crypto tax calculator.

Crypto taxes in Germany FAQs

How is transferring crypto between different wallets taxed in Germany?

Transfers between wallets you control are ignored for tax. Keep records to prove both wallets are yours.

When do you need to report your crypto taxes?

Include crypto in your annual return due July 31. Pay any assessed tax within one month of the Bescheid.

Do I need to pay taxes on crypto gifts or donations?

Gifting crypto is a disposal for the donor. The recipient may owe gift tax if the value exceeds personal allowances within ten years.

Are NFT sales and purchases taxable?

Buying an NFT sets a cost basis. Selling within 12 months is taxable. After 12 months gains are tax-free. Income from creating and selling an NFT is business income.

Do I need to report crypto held in foreign exchanges?

Yes. German residents are taxed on worldwide income. Declare gains and income even if the assets sit on non-German platforms.