Crypto Tax in Germany: Complete 2026 Guide

How is Crypto Taxed in Germany?

Germany has one of the most favourable personal crypto tax regimes in any major economy. Under §23 of the Einkommensteuergesetz (Income Tax Act), gains on the sale of crypto held as a private asset by an individual are completely tax-free if you hold the asset for more than 12 months before disposing of it. Within the 12-month window, gains are taxed at your personal income tax rate (14%–45%), but a €1,000 annual short-term gains allowance shields modest amounts entirely.

The framework rests on the German concept of private Veräußerungsgeschäfte (private sale transactions). Crypto held by an individual investor falls into this category — the same provision that historically governed real estate, art, and other private movable property. The Federal Ministry of Finance (BMF) issued definitive crypto tax guidance on 10 May 2022, confirming the favourable treatment and clarifying staking and lending.

Important boundary: this favourable treatment applies to private investors. If your crypto activity rises to commercial level (Gewerbe — high frequency, organised, professional), the favourable §23 treatment does not apply; instead, you have business income subject to additional trade tax (Gewerbesteuer) and full income tax. Most retail investors comfortably remain in the private regime.

The 1-Year Tax-Free Rule

The mechanics are simple but consequential:

• Acquisition date + 365 days + 1 day = first tax-free disposal date.
• Each individual lot of crypto has its own 1-year clock based on FIFO accounting.
• The rule applies to private individuals only — not to corporations or business income from crypto.

One important historical question: did staking or lending of crypto extend the holding period to 10 years (the special rule for "income-generating" assets under §23)? The BMF letter of 10 May 2022 confirmed the answer is no. Staking and lending do not extend the holding period — the 1-year rule still applies. This was a major positive clarification.

Receiving crypto as new income (staking rewards, mining rewards, airdrops, salary) is taxed as ordinary income at receipt — but the holding period for the received crypto starts afresh at the income recognition date. So a staking reward received today and held 12+ months becomes tax-free at disposal even though the underlying stake was already held.

Short-Term Tax Rates (Within 12 Months)

If you sell within 12 months of acquisition, the gain is added to your annual income and taxed at marginal income tax rates:

• 0% up to €11,604 (basic personal allowance for 2024; €12,096 for 2025)
• 14% – 24% on income €11,605 – €17,005 (progressive)
• 24% – 42% on income €17,006 – €66,760 (progressive)
• 42% on income €66,761 – €277,825
• 45% on income above €277,825 (Reichensteuer / "rich tax")
• Plus 5.5% solidarity surcharge on income tax above approximately €17,000 (above which it applies fully)
• Plus 8% or 9% church tax for confessing members (Catholic/Protestant)

The first €1,000 of annual short-term crypto gains is exempt under §23(3) sentence 5 — raised from €600 effective 1 January 2024. Above €1,000 of short-term gains in a year, the entire amount becomes taxable.

Which German Crypto Transactions are Taxable?

• ✅ Selling crypto for EUR or any fiat (taxable if within 1 year and above allowance)
• ✅ Swapping one crypto for another (each token has its own 1-year clock)
• ✅ Spending crypto on goods/services (taxable if within 1 year)
• ✅ Mining rewards (ordinary income at receipt)
• ✅ Staking rewards (ordinary income at receipt; 1-year clock applies to the stake)
• ✅ Receiving crypto as salary (income at receipt)
• ✅ Most airdrops (typically other income at receipt)
• ❌ Buying crypto with EUR (establishes the 1-year clock)
• ❌ Holding crypto
• ❌ Transferring between own wallets (holding period continues)
• ❌ Disposing of crypto held more than 1 year (tax-free under §23)

How to File via Anlage SO

German crypto taxation goes on Anlage SO (the "Other Income" supplementary form) of the German income tax return. The procedure:

1. Identify reportable disposals — those within 12 months of acquisition.
2. Calculate gains on each disposal using FIFO (first in, first out) on the same-asset, same-wallet basis.
3. Sum all short-term gains across the year — if total stays below €1,000, no tax is owed but you may still need to report.
4. Identify income from crypto receipt (mining, staking, airdrops, salary) — report on Anlage SO as "sonstige Einkünfte" or appropriate income line.
5. File through ELSTER online or via your Steuerberater (tax adviser).
6. Filing deadlines — 31 July following the tax year for self-filers; 28/29 February of the second following year if filing through a tax adviser.

The Finanzamt may request supporting evidence — exchange CSV exports, transaction histories from wallets, and proof of acquisition dates. Maintain records for 10 years where the value involved is significant.

Crypto Tax for Specific Activities in Germany

Staking

BMF guidance (10 May 2022) treats staking rewards as ordinary income at fair market value at receipt. The reward itself starts a new 1-year clock from receipt date. Staking does not extend the original stake\'s 1-year clock — a major positive clarification ending years of uncertainty.

Mining

Mining at hobby scale is "other income" under §22 EStG, taxed at receipt. Commercial mining is business income (Gewerbe) subject to trade tax in addition to income tax — significantly less favourable than hobby mining.

Lending and DeFi

BMF treats interest/yield received from crypto lending as ordinary income at receipt. The underlying crypto continues its 1-year holding period for §23 purposes provided the lent asset is returned. Specific DeFi guidance remains evolving; conservative treatment treats each protocol interaction as a §23 event.

NFTs

BMF has not issued NFT-specific guidance. Professional consensus treats NFTs as private assets eligible for the 1-year rule under §23. Commercial NFT activity may be classed as Gewerbe.

Crypto Salary

Crypto received as wages is taxable employment income at EUR-equivalent value at receipt. The receipt amount is the new cost basis and the 1-year clock starts at receipt.

Cost Basis Method (FIFO Mandatory)

Germany requires FIFO (First In, First Out) for crypto on a per-wallet basis. The first units of a token acquired are deemed to be the first sold. You cannot elect specific identification, LIFO, or HIFO to optimise tax.

FIFO is applied separately to each wallet/exchange — meaning identical assets at different platforms have distinct FIFO orders. This per-wallet rule was clarified in the BMF 2022 letter and is more favourable to taxpayers than a single global FIFO would be. It enables some planning: separating older lots into different wallets can produce different FIFO outcomes for subsequent disposals.

Official Sources & References