Cryptocurrencies are not state-issued centralised currencies. They are considered a separate asset class and are not subject to the rules on taxing investment income (Kapitalertragsteuer/Abgeltungsteuer). You can read more about taxes for German investors in this article.
Real cryptocurrencies such as Bitcoin & Co. are traded on specialised crypto exchanges, for example Binance.
Tax payments on cryptocurrency in Germany depend on the period—how long you hold a particular cryptocurrency in your account or crypto wallet.
And that’s not all.
For cryptocurrency, too, there is a tax relief – the Freigrenze (exemption limit) of €1,000.
It is important to understand the difference: the Freibetrag (tax-free allowance) of €1,000 (as with shares) and the Freigrenze – not the same thing. If you hold cryptocurrency for less than one year, and your return exceeds €1,000 (for example, your return is €1,001), you will have to pay full tax on the entire income, and the €1,000 exemption sort of “expires” rather than being deducted from income.
For example, if you sold a few children’s toys on eBay for €200 (which, incidentally, should be declared in your tax return, the Steuererklärung), your remaining tax-free limit for cryptocurrency trading that year will be 800 euros. On the condition that you’re not dabbling anywhere else 😊
Cryptocurrency income tax in Germany (if you still have to pay it, based on the aforementioned provisions) is the investor’s obligation to declare independently in the tax return. To do this, you need to enter the amount of your profit in Anlage SO (“Sonstige Einkünfte”, other income) of your tax return (Steuererklärung).
Recently, cryptocurrency investments have become available through some neobrokers (for example, Scalable Capital* and Trade Republic). And there is a significant tax difference compared with cryptocurrencies traded on crypto exchanges.
On neo-brokers, cryptocurrencies are not traded in their pure form, but as securities, so-called “ETP – Exchange Traded Products”. Therefore, they are subject to tax rules like ordinary securities, and German brokers calculate and deduct the necessary taxes themselves.
Conclusions:
- In Germany, investors pay cryptocurrency taxes if they buy “real” cryptocurrency on a crypto exchange and hold it for less than a year, generating a profit of more than €1,000 per year.
- The investor is obliged to declare cryptocurrency taxes independently in their tax return.
- When buying cryptocurrency in the form of an ETP through a standard neo-broker, the broker automatically withholds the tax itself, similar to taxes on securities.
Finber editorial update, August 2026
The article was written in 2022, and the main rules haven’t changed since then. However, three things have appeared during this time that didn’t exist back then, and one phrasing is worth clarifying.
From 1 January 2026, exchanges will report you to the tax authorities themselves
The European DAC8 directive has come into force. Crypto exchanges and wallet providers registered in the EU automatically transmit customer data to tax authorities: purchases, sales, exchanges of one coin for another, fiat deposits and withdrawals, account balances, and staking rewards. The obligation to declare independently has not gone away; what has changed is that the Finanzamt can now cross-reference your tax return with exchange data. Self-custody wallets and decentralised exchanges are not yet subject to DAC8 reporting.
Abolishing the one-year holding period has been proposed, but for now it still applies
On 3 July 2026, Finance Minister Lars Klingbeil presented a budget draft proposing to abolish the tax exemption after a one-year holding period and to tax cryptocurrency like standard securities. The Cabinet supported the draft. This is currently only a draft: for the rule to change, a fully fledged bill is required and it must pass through parliament. As of today, the one-year period under Section 23 of the German Income Tax Act (EStG) remains unchanged. Grandfathering for coins already purchased is being discussed, but it is not enshrined in the text — if you are planning a sale, monitor the progress of the bill.
Staking and lending are considered separately
Income from staking, lending and mining is not a speculative transaction, but other income under Section 22 Number 3 of the Income Tax Act (EStG). It has its own limit of 256 euros per year, and this is also a Freigrenze: 255 euros are tax-free, 256 are taxed in full. Tax is incurred at the very moment the coins are received, based on the exchange rate on that day, and not upon sale.
Clarification regarding the €1,000 example
The threshold triggers on the amount itself: with a profit of €999.99 there is no tax, at exactly €1,000.00 the entire profit is taxed. Under Section 23(3) of the Income Tax Act the exemption only applies if the total profit for the calendar year is less than 1,000 euros. The rate itself is your personal one — the same one used to calculate income tax, rather than a fixed 25 %, as with securities and ETFs.
Finber editorial update, September 2026
Selling your own belongings on eBay does not reduce the €1,000 limit
The example with the children’s toys above needs correcting. Second-hand items for personal use — toys, clothes, furniture — count as Gegenstände des täglichen Gebrauchs (items of everyday use), and § 23 EStG explicitly excludes their sale from private sale transactions. No tax is due here, such sales do not have to be declared, and they do not use up any of the Freigrenze. Only profit from other private sale transactions made within a year of purchase counts towards the limit: for example, profit from cryptocurrency, gold or collectibles. And it is the profit that counts, not the amount you sold for.
This material is for informational purposes only and does not constitute tax advice. The data was verified in August 2026.
Valery Melech, insurance broker at Finber: if cryptocurrency is your nest egg for old age, I would not build the plan on the one-year holding period. Abolishing it has already been proposed. For money meant for retirement, the Altersvorsorgedepot (state-subsidised pension savings account) starts on 1 January 2027: the state adds up to €540 a year, and gains inside the account are not taxed until payout.
There are downsides too: you can hardly touch the money before retirement without losing the subsidies, and payouts are taxed at your personal rate. Worked examples are on our page about the Altersvorsorgedepot from 2027. Book a consultation to compare the options using your own figures.
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(*) meaning:
With our recommendations, we want to help as many people as possible look after their finances. We fund our work through affiliate links. We mark these links with an asterisk (*).
Hello.
I don’t live in Germany, but in Germany I exchanged Bitcoin for Euros at a bureau de change.
Do I have to pay tax in Germany
You are saying that a full list of transactions is required for tax reporting. But what should I do if my money is from an airdrop and there are 500 transactions from 500 accounts, how do I handle that then?
Good afternoon, if I bought a cryptoasset with fiat money, and then exchanged one cryptoasset for another (traded within the exchange), while the nominal amount of cryptoassets increased (made a profit within the exchange), will I be able to withdraw the increased amount of cryptoasset into fiat a year later without paying tax?
Please provide me with the contact details for a cryptocurrency tax specialist in Germany.
if I withdraw 100 euros from a p2p market (1 tap game will be listed), will there be any questions asked of me?
Hello.
It is better to ask such questions to a tax adviser.
Hello! Could you please tell me, am I right in thinking that if I mined or bought cryptocurrency in Russia, for example, and want to convert it into US dollars in Germany, I have to pay tax? And vice versa. That is, whichever country you are in, that is the one where you pay taxes according to the laws of that country?
Good afternoon.
As stated in the article: if you held crypto for more than a year, you don’t have to pay tax.
Good afternoon. Let me explain. If the purchased cryptocurrency is not withdrawn outside the exchange at all—meaning it is not exchanged for regular US dollars and Euros—then the tax authority, in principle, cannot see that you have it. And can they only request a verification from the exchange if there are suspicions? Is that all correct? It turns out that if the exchange itself does not provide all the information about the client, and the client also fails to declare it, then the tax authority will be unaware that this person holds crypto assets. Did I understand this correctly? Or is the exchange still obliged to provide information about everyone, regardless of whether there were requests from the tax authority or not?
Good afternoon.
Until you have realised your profit in euros or dollars, that’s completely right — there’s no need to report it anywhere.
But would I still be able to present my case and get a brief consultation with you today at 6pm?
Good afternoon, Valery!
The site was having issues, so I had to write several questions and they all got published.
Is your 45-minute consultation free?
Good afternoon.
As an insurance broker I do not charge clients a fee for advice. I am remunerated by the companies through commission on concluded contracts.
But I am not a tax specialist.
Hello!
Does absolutely any cryptocurrency become exempt from tax after being held for a year?
Hello.
Yes, absolutely any.
Good day, Valery.
That means absolutely any cryptocurrency (not just the main ones, such as Bitcoin and Ethereum) is exempt from any taxes after being held for a year?
My case: I bought a crypto asset on 1 April 2024, and if I exchange it back into euros—that is, realise the profit—after 1 April 2025, will I be able to use the money freely without paying any tax?
And is there somewhere this can be reliably read in the law?
Thanks for the reply!
Good afternoon.
Here is one of the links to the official source:
https://www.bundesfinanzministerium.de/Content/DE/Pressemitteilungen/Finanzpolitik/2022/05/2022-05-11-ertragsbesteuerung-von-virtuellen-waehrungen.
Good afternoon?
That means absolutely any cryptocurrency (not just Bitcoin and Ethereum) is exempt from any taxes after being held for a year?
Where can I reliably check this in German law?
Good day!
I am a Lithuanian citizen, but I live and study in Germany. If I realise a profit from cryptocurrency income, which country will tax me?
How much does a personal consultation cost?
Hello Vitaliy.
If you live in Germany, you have the obligation to pay taxes in Germany.
Regarding Lithuania, I cannot help.
I am a pensioner on sickness benefit (code 100%)… (I live in Germany). I’ve started trading cryptocurrencies on an exchange… When I make a withdrawal, the funds are automatically converted into euros – will tax be deducted?
Good afternoon.
Everything is as described in the article.
If you have owned the crypto for less than 12 months, you will need to pay tax.
Good afternoon.
I have 2 questions.
1. Do you need to report to the tax authorities when buying cryptocurrency with euros and then selling it for rubles? Ie it is actually difficult to assess the profitability of the transaction, as it is essentially the conversion of euros into rubles via cryptocurrency.
2. What are the limits and obligations regarding amounts, in terms of the procedure from item 1, if, for example, a friend asks me to do this kind of conversion for them — i.e. I receive a transfer from them via IBAN and then carry out the operation from item 1?
Thanks in advance for your answers.
Good afternoon Valentin,
A very good question.
Only a tax specialist or a Sachbearbeiter at the Finanzamt can give you a competent answer to that.
hi. if for example i hold a crypto for more than a year, am i obliged to make a declaration to the tax authorities at the time of selling this crypto? or does the declaration only need to be made when the crypto is held for less than a year or when the profits made from it do not exceed 600 euros? thanks for your answer
If your cryptocurrency gains are taxable, you must declare them on your tax return.
For the most up-to-date information and details regarding your individual situation, it is advisable to contact a tax adviser or the tax office. It is also useful to use official resources and check the latest changes in German tax law regarding cryptocurrencies.
Translated with http://www.DeepL.com/Translator (free version)
Hello. Tell me, is a year considered, say: from 13.03.2024 to 13.03.2025 and after this time will my sales be tax-free? Am I understanding correctly, or are there any catches?
Hello.
Yes, the year is calculated from the moment the crypto was purchased.
If in any doubt, I recommend consulting a tax advisor.
Hello, I live in Germany.
Could you please tell me, have I understood correctly: if I start getting into cryptocurrency now, will I have to wait a whole year, or rather keep the money in my wallet for a whole year, and then withdraw it (and then I won’t have to pay tax)? Right?
Hello! In Germany, there is indeed a tax law provision concerning cryptocurrencies that can exempt you from paying capital gains tax on the sale of crypto under certain conditions. According to German tax law, if you hold cryptocurrency for more than one year, any profit generated from selling it after this period is exempt from capital gains tax. This means that if you buy cryptocurrency and hold it in your wallet for one year or longer, you will not be obliged to pay tax on the profit from its sale when you sell it.
Good afternoon. Could you please advise what would happen if a company’s funds were converted into cryptocurrency, grown if possible, and converted back. What are the consequences and is it profitable to do so if we are talking about the European Union?
I recommend you consult a tax adviser or cryptocurrency specialist in Germany to obtain up-to-date information relevant to your specific situation and to ensure that you comply with all tax law requirements.
Good afternoon. Could you please advise me on how I can register in Germany if I have an account with a prop trading company? (The companies vary. They trade futures, indices, currencies, and crypto.) They enter into a contract with me as an Investment Consultant. I hold a higher education degree in economics. I am currently with the Jobcenter. Thank you in advance for your reply. An example of a prop company is MyFundedFX (not an ad).
Hello.
Investments and crypto are not banned in Germany.
Of course, you will likely need the help of a tax adviser to sort out your tax and accounting.
But otherwise, it’s completely legal.
Good afternoon,
I live in Germany, and my parents live in Russia. They want to transfer USDT to me. Could you please advise on how to do this correctly to avoid issues with account blocking, taxes, and so on?
Thanks in advance
Andrei
Good afternoon.
In Germany, there is a gift tax (Schenkungsteuer) that applies to gifts and inheritances. The amount of tax and the requirement to pay it depend on the degree of kinship between the donor and the recipient, as well as the size of the gift.
For gifts from parents to children in Germany, the following tax reliefs and tax exemption thresholds are established:
1.Tax exemption: Children can receive gifts from their parents tax-free up to the amount of €400,000 over a 10-year period. This means that if the gift amount does not exceed the specified limit, no gift tax will be payable.
2. Taxation: If the amount of the gift exceeds the tax exemption limit, tax will be charged on the excess amount at a rate that depends on the size of the gift and the degree of kinship. Gift tax rates can vary, and for an accurate calculation, it is recommended to consult a tax adviser.
3. Documentation: To prevent tax issues, it is important to properly draw up documents confirming the fact of the gift and its value. This may be required for submission to the tax authority in the event of an audit.
These rules apply to all types of gifts, including cash, real estate, securities, and other property. However, it is important to bear in mind that rules can change, and for up-to-date information and advice on your specific situation, it is recommended that you consult a tax advisor or a lawyer specialising in German tax law.
Could you please tell me how the tax office can see the holding period for cryptocurrencies? Does anyone in Germany use the Trustee crypto card to pay for goods? What are the pitfalls?
In Germany, tax policy regarding cryptocurrencies is evolving and adapting to the new realities of the digital economy. Your question touches upon several aspects: how tax authorities track the holding period of cryptocurrency and the use of cryptocurrency cards, such as Trustee, for purchasing goods.
Holding period of cryptocurrency
Declaration: In Germany, as in many other countries, taxpayers are obliged to declare their income themselves, including income from cryptocurrencies. This means that information about the periods for which cryptocurrencies have been held and the transactions made must be provided by the taxpayer themselves.
Tracking: Tax authorities can track cryptocurrency transactions through crypto exchanges and payment services, which may provide information upon request from tax services. In the event of a taxpayer audit, it may be necessary to provide detailed information about one’s cryptocurrency transactions.
Shelf life: An important aspect of cryptocurrency taxation in Germany is the holding period. If the cryptocurrency has been held for more than a year, the profit from its sale is tax-free. For cryptocurrencies held for less than a year, the profit is taxed as capital gains.
Using cryptocurrency cards, such as Trustee
Tax implications: When using a cryptocurrency card to pay for goods and services, each transaction may be treated as a disposal of cryptocurrency, which could be subject to tax depending on the length of time that cryptocurrency has been held and the amount of any gain realised.
Potential pitfalls: One of the potential pitfalls is the need to keep accurate records of all transactions for tax purposes, which can be difficult without specialist software or the help of a tax adviser. In addition, it is worth bearing in mind potential exchange and card usage fees, as well as changes in tax legislation.
Safety and privacy: When using any cryptocurrency services, it is important to pay attention to security and privacy issues, making sure that the service complies with all necessary security and personal data protection standards.
In conclusion, when using cryptocurrencies and cryptocurrency cards in Germany, it is important to be aware of tax obligations and potential risks. It is recommended to keep a detailed record of all your cryptocurrency transactions and, if necessary, seek professional advice.
Could you please tell me the publication date of the article? I can’t figure out how relevant the fact of no tax after selling cryptocurrency after a year of ownership is right now.
An article from early 2023.
The fact of ownership for more than 1 year is still relevant.