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Germany · Crypto Tax

Hold crypto over one year in Germany and the gain is completely tax-free.

Germany treats private crypto gains very differently from most countries: hold long enough and the tax bill disappears entirely. Here are the six questions our engine sees most, each traced to the statute, the 2025 BMF circular, or the top tax court ruling behind it.

Do I owe tax on crypto gains if I've held the coins for more than a year before selling?
Commonly misreported
No. Under Germany's private-sale-transaction rule, a gain on "other assets" like cryptocurrency is only taxable if the period between acquisition and disposal is one year or less (the Spekulationsfrist). Sell after holding more than a year and the gain is outside the scope of tax entirely — not merely reduced. Germany's federal tax court has confirmed cryptocurrencies (the case covered Bitcoin, Ether and Monero) fall squarely under this rule.
Sources: § 23 Abs. 1 Satz 1 Nr. 2 EStG · BFH, Urteil v. 14.02.2023 - IX R 3/22
If I swap one crypto for another, does that still count as a disposal that starts or ends the one-year clock, even though I never touched euros?
Commonly misreported
Yes. Germany's federal tax court ruled that units of a virtual currency are "acquired" when exchanged for euros, a foreign currency, or another virtual currency, and are "disposed of" the same way — including when swapped for a different token. A crypto-to-crypto trade closes out the holding period on the coin given up and starts a fresh one-year clock on the coin received.
Sources: BFH, Urteil v. 14.02.2023 - IX R 3/22
Is there a tax-free allowance if my total crypto gains for the year are small?
Commonly misreported
Yes, but it's a cliff, not a deduction. Total profit from private sale transactions (including crypto held one year or less) stays entirely tax-free if it comes to less than €1,000 in the calendar year. Go even one euro over that threshold, though, and the full gain becomes taxable — the allowance doesn't just shave €1,000 off the top.
Sources: § 23 Abs. 3 Satz 5 EStG
If I staked or lent out my crypto, does the one-year tax-free rule still apply the same way?
Commonly misreported
No — this is the exception that catches people out. If an asset was itself used to generate income (as a source of income, such as through staking or lending) in at least one calendar year, the holding period required for a tax-free sale extends from one year to ten years for that asset. Coins you simply held passively aren't affected; coins you staked or lent are.
Sources: § 23 Abs. 1 Satz 1 Nr. 2 Satz 4 EStG · BMF-Schreiben v. 06.03.2025, Rz. 48-49
Are staking rewards themselves taxed separately from whatever happens when I later sell the coins?
Yes. Income from (passive) staking — putting up a stake without acting as the validator yourself — is generally taxed as other income under section 22 no. 3 of the Income Tax Act at the market price when the reward is received or claimed. That's a separate tax event from any later capital gain or loss when you eventually dispose of those reward coins.
Sources: BMF-Schreiben v. 06.03.2025, Rz. 48-49
What records does the Finanzamt expect me to keep for crypto transactions?
Enough to let each private sale transaction be verified on its own: the crypto-asset's name, the quantity, the acquisition time and cost, the sale time and proceeds, the holding period, the exchange used, and which cost-tracking method (unit-by-unit, average, or FIFO) was applied — documented per wallet if you regroup holdings between wallets.
Sources: BMF-Schreiben v. 06.03.2025, Rz. 102-103
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Tax intelligence, not tax advice. Every answer above cites primary law you can check; a qualified professional should review your specific situation before filing. TaxPulse — a PulseNetwork intelligence engine.