Crypto Tax Guide Germany for 2026: Kryptowährung Steuer

Yes. For individuals, crypto held privately counts as private assets (Privatvermögen). Selling or swapping it within 12 months of buying is a private sale under §23 EStG, and the gain is taxed at your income tax rate. Gains after 12 months are tax-free. Rewards from staking, lending, and some airdrops are taxed separately as other income. Crypto held as a business asset is always taxed on profits, with no holding period exemption.

• Short-term gains: added to your taxable income and taxed at 14% to 45%. The 5.5% solidarity surcharge now applies only to higher earners, and church tax may apply.

• Tax-free limit: total short-term gains under €1,000 in a calendar year are tax-free. This is a threshold, not an allowance: if your gains reach €1,000, the whole amount is taxable, not just the portion above €1,000.

• Other income from staking, lending, and airdrops: tax-free if your total from these sources is under €256 for the year, with the same all-or-nothing rule.

• Long-term gains: 0% 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: Mining and staking rewards are taxed either as business income or as other income (§22 Nr. 3 EStG), depending on the scale of the activity. For private staking, rewards are treated as other income at their euro market value upon receipt, subject to the €256 limit. The 12-month holding period for the reward tokens starts on the day you receive them.

• Crypto-to-crypto trades taxed: Swapping BTC for ETH is treated as a single sale of BTC, and the ETH is treated as newly bought at its market value on that day. Gains on the BTC are taxable if you held it 12 months or less. The 12-month clock for the ETH starts on the swap date.

• Receiving cryptocurrency as payment: Salary paid in crypto is employment income subject to wage tax (Lohnsteuer), valued in euros when received. Fees for freelance or business work are business income at their euro value.

There is no separate capital-gains tax: taxable crypto gains are included in your Einkommensteuer assessment. Use the first-in, first-out (FIFO) method when specific units cannot be identified. The BMF's current guidance on crypto is its 6 March 2025 letter, which replaced the 10 May 2022 letter. The 2025 letter also adds detailed documentation and cooperation requirements for taxpayers.

Short-term crypto losses can offset gains from other private sales in the same year, but not wage or business income. Unused losses can be carried back one year or carried forward to offset future private sale gains. Disposals after 12 months are tax-free, so they do not create deductible losses.

It depends on whether you did anything to get the airdrop. If you had to do something in return, such as registering, linking a wallet, or promoting the project on social media, the tokens would be considered other income under §22 Nr. 3 EStG, subject to the €256 limit. If you simply received tokens for holding another token, receiving them is not taxable. Selling them later is taxed under the normal private sale rules. If there is no market price when you receive airdropped tokens, the BMF accepts a value of €0.

Income from lending out crypto is other income under §22 Nr. 3 EStG, taxed when received and subject to the €256 limit.

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

Custody, exchange, and other crypto services now require authorization under the EU's MiCA regulation, granted in Germany by BaFin under the Crypto Markets Supervision Act (KMAG). Germany shortened MiCA's transition period for existing providers to 12 months, so unlicensed providers have been barred from offering services since January 1, 2026. Private investors face no registration requirements.

Germany's Crypto-Asset Tax Transparency Act (KStTG), which implements the EU's DAC8 rules, has required crypto service providers to collect user and transaction data since January 1, 2026. They send it to the Federal Central Tax Office (BZSt), with the first reports covering 2026 due by July 31, 2027.

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 total short-term gains under €1,000 for the year. Reaching €1,000 makes the full amount taxable.

• 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 under €1,000.

• Moving coins between wallets you own.

Record the date, quantity, euro value, exchange, wallet address, and cost basis method for every transaction. The BMF's 2025 letter makes clear these requirements apply to private investors too. If your records are incomplete, the tax office can estimate your gains. Individuals with income from crypto gains above €500,000 in a year (€750,000 from 2027) must keep all tax-relevant records for six years. Businesses keep records for up to ten years under §147 AO.

• 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 private sale gains and other income from staking, lending, and airdrops in Anlage SO. Commercial mining or trading goes in Anlage G, freelance income paid in crypto in Anlage S, and salary paid in crypto in Anlage N.

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.