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Germany Cryptocurrency Tax Guide (Besteuerung von Kryptowährungen)

Germany offers one of the most favourable crypto tax regimes in the world: private crypto gains are tax-free after just 1 year (Spekulationsfrist). Within the first year, gains under €600 (single) / €1,000 (joint) are completely exempt (Freigrenze). Mining, staking, lending, and airdrop income are treated as sonstige Einkünfte (other income) taxable at receipt. Professional/commercial trading (gewerblicher Handel) triggers full taxation at marginal rates.

The German tax treatment of cryptocurrencies is governed by the same rules as private sales transactions (private Veräußerungsgeschäfte) under §23 EStG. The BMF (Federal Ministry of Finance) has issued detailed guidance confirming that crypto is treated as a "wirtschaftliches Gut" (economic asset) rather than a currency or security. This distinction matters because the 1-year holding period for tax-free sales is uniquely generous compared to most countries. For related reading, see our Capital Gains Tax Guide → and Savings Allowance Guide →.

Private Crypto Sales (Private Veräußerungsgeschäfte)

  • 1-year holding period (Spekulationsfrist): If you hold a cryptocurrency (Bitcoin, Ethereum, etc.) for more than 1 year before selling, the gain is completely tax-free. There is no limit on the gain amount — even millions of euros in profit are tax-free after 1 year. The clock starts on the date of acquisition (purchase, mining receipt, or staking receipt).
  • Freigrenze (€600/€1,000 exemption): If you sell within 1 year, gains are tax-free if the total gain across all crypto sales in the calendar year is less than €600 (single) / €1,000 (married). This is a Freigrenze, not a Freibetrag — if you exceed it by even €1, the entire gain becomes taxable (not just the excess).
  • Crypto-to-crypto trades: Exchanging one cryptocurrency for another (e.g., BTC to ETH) is a taxable event. It is treated as selling the first crypto at its EUR value at the time of the trade. If within 1 year, the gain is taxable subject to the Freigrenze.
  • Transfers between own wallets: Moving crypto between your own wallets (from exchange to hardware wallet, etc.) is NOT a taxable event. You are not disposing of the asset — just changing custody. Ensure you keep records to prove wallets belong to you.
  • Stablecoins: Swapping crypto to USDC or USDT is also a taxable event (disposal of crypto). Holding stablecoins does not generate gains (they are pegged), but the transaction itself must be reported.

Mining, Staking, Lending, and Airdrops

  • Mining rewards: Taxable as sonstige Einkünfte (other income) at the fair market value (in EUR) at the time the coins are credited to your wallet. Mining expenses (electricity, hardware, pool fees) can be deducted. If mining qualifies as a trade or business (Gewerbebetrieb), it becomes fully taxable as business income.
  • Staking and lending income: Rewards from staking (Proof-of-Stake) and crypto lending/DeFi are also sonstige Einkünfte, taxable at the market value when received. The subsequent sale of staking/lending rewards follows the normal holding period rules — if held >1 year from receipt, the sale is tax-free.
  • Airdrops and forks: Taxable as sonstige Einkünfte at the market value when you gain disposal over the coins (usually when listed on an exchange). Hard fork coins (e.g., Bitcoin Cash from BTC fork) are also income at receipt. The subsequent sale follows standard rules.
  • Professional/commercial trading (gewerblicher Handel): If you trade crypto with high frequency, use leverage, or trade as your main income source, the Finanzamt may classify you as a gewerblicher Trader. In this case, all gains are fully taxable at marginal rates (up to 45%) regardless of holding period, and losses can offset all types of income. The BMF guidance sets a rough threshold: >1,000 transactions per year raises presumption of commercial activity.

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