Crypto tax in Germany

STATUS: TAXED AS A PRIVATE ASSET

    As of: June 2026
    Last reviewed: April 3, 2026
  

This is general information, not legal, tax, or financial advice. Verify the current rules with a qualified local professional and the official regulator before acting.

Quick answer

Germany taxes private crypto gains as private sale transactions under section 23 of the Income Tax Act, administered by the BMF. The defining feature is the one year holding period: a gain is tax free if you held the asset for more than one year, and taxable at your personal income tax rate if you sold within one year. A 1,000 euro per year exemption threshold applies to short term gains. This is general information, not tax advice.

How crypto is taxed in Germany

Not tax advice, verify before filing

The Federal Ministry of Finance, known as the BMF, treats privately held crypto as a private asset (sonstiges Wirtschaftsgut), and a gain on disposal as a private sale transaction (privates Veraeusserungsgeschaeft) under section 23 of the Income Tax Act (Einkommensteuergesetz), as of April 2026. This means crypto gains are not taxed under the flat capital income rules that apply to many securities, but under the private sale rules, which include the one year holding period described below. The BMF letter dated 6 March 2025 sets out the current treatment and the records the tax office expects.

The rules in detail

The one year holding period

The core rule is the holding period. If you hold a crypto asset for more than one year before selling, swapping, or spending it, the gain is tax free, regardless of how large the gain is, as of April 2026. If you dispose of it within one year of acquiring it, the gain is taxable. The clock runs from acquisition to disposal, and the First In First Out method is generally used to identify which units were sold where individual units cannot be distinguished. Keep clear records of acquisition dates, because they determine whether a disposal falls inside or outside the one year window.

The 1,000 euro exemption threshold

For disposals within the one year window, there is an exemption threshold of 1,000 euro per calendar year for total gains from all private sale transactions, as of April 2026. This is a threshold (Freigrenze), not an allowance (Freibetrag). The difference matters: if your total private sale gains for the year stay at or below 1,000 euro, they are exempt, but if they exceed 1,000 euro the whole amount becomes taxable, not just the part above the threshold. This threshold was raised from 600 euro for tax years from 2024.

Tax rate on taxable gains

Where a gain is taxable, it is added to your other income and taxed at your personal income tax rate, which is progressive and can reach 45 percent, with the solidarity surcharge applying on top where relevant. There is no separate flat rate for these private sale gains, so the effective rate depends on your overall income for the year.

Staking, lending, and rewards

Rewards from staking and lending are generally taxed as other income at their market value in euro when received, as of April 2026. A later disposal of those reward tokens is then a separate private sale transaction, with its own one year holding period running from the date of receipt. Earlier uncertainty about a longer holding period for assets used to earn rewards was addressed by BMF guidance confirming the one year period continues to apply. Verify the treatment of your specific activity with a qualified tax adviser.

A change to watch

The one year tax free rule is politically contested. A proposal led by the Finance Minister to abolish the holding period has been reported as part of a future budget package, framed within a broader fiscal plan rather than a standalone tax change. As of April 2026 it is not law and the one year rule remains in force. Because this is the single most valuable feature of the German regime for long term holders, watch for confirmed changes and confirm the current position before you plan around it.

How to stay compliant in Germany

Keep a full record of every acquisition and disposal, with dates and euro values, since the holding period and the threshold both turn on accurate dates. Many German residents use a platform that holds MiCA authorisation supervised by BaFin for buying and selling, which produces a clean transaction history. Compare authorised options below, then verify the current tax position with a registered tax adviser before filing.

Act legally in Germany

Compare exchanges available to Germany users

Platforms that operate for Germany residents under MiCA authorisation include Coinbase, Kraken, Bitpanda, Bitvavo, and Bitstamp. See the authorised options side by side, then verify the current position with the platform and BaFin before you sign up.

Compare available exchanges

Regulator and sources

Federal Ministry of Finance (BMF) guidance on the income tax treatment of crypto assets, including the letter dated 6 March 2025, current to June 2026.
Income Tax Act (Einkommensteuergesetz) section 23, governing private sale transactions, the one year holding period, and the 1,000 euro exemption threshold.
Reported budget proposal to abolish the one year holding period, not enacted as of April 2026.

Frequently asked questions

Is crypto tax free after one year in Germany?

Yes, as of April 2026. The BMF treats private crypto holdings as a private asset, and a gain on disposal is tax free if you held the asset for more than one year before selling or swapping it. Gains on assets sold within one year are taxable. This is general information, not tax advice.

How much crypto gain is tax free in Germany?

For assets held one year or less, there is an exemption threshold of 1,000 euro per calendar year for total private sale gains. This is a threshold, not an allowance, so if total private sale gains exceed 1,000 euro the whole amount is taxable. Gains on assets held more than one year are tax free regardless of size.

What tax rate applies to crypto in Germany?

Taxable private crypto gains are added to your other income and taxed at your personal income tax rate, which can reach 45 percent, plus the solidarity surcharge where it applies. There is no separate flat rate for these private sale gains. This is general information, not tax advice.

How are staking rewards taxed in Germany?

Staking and lending rewards are generally taxed as other income at their market value when received, as of April 2026. A later disposal of those tokens is a separate private sale transaction. The one year holding period for the tokens still applies. Verify with a tax adviser before filing.

Could the one year crypto tax rule be abolished?

As of April 2026 the one year rule remains in force. A proposal led by the Finance Minister to abolish it has been reported as part of a future budget package, but it has not become law. Confirm the current position with the BMF and a tax adviser before relying on it.

Crypto in Germany: country hub Crypto regulation in Germany Best crypto exchanges in Germany How to buy bitcoin in Germany Crypto tax by country Crypto tax in France Crypto tax in the Netherlands Crypto tax in Spain

Risk and change note: tax rules change frequently and can shift with little notice. The one year holding rule is the subject of a reported budget proposal, and thresholds and rates can be amended in the annual tax process. The positions above carry an as of date and were last reviewed on June 21, 2026. Confirm the current rules with the BMF and a qualified tax adviser before you act.

Subscribe to The Compliance Ledger

One short weekly note when a rule or an exchange status changes. Information, not advice.