Germany crypto tax guide for 2025

Cryptocurrencies are growing in popularity worldwide, and Germany is no exception. According to Statista, nearly 30% of the German population reported holding crypto as of 2025. But with the asset class still relatively young compared to more established markets, many crypto investors are unsure about how Germany taxes digital assets, including whether they need to pay taxes on their crypto gains at all. 

Crypto is indeed taxable in Germany, but there’s a silver lining: Crypto gains can be completely tax-free after just one year of holding. 

This comprehensive Germany crypto tax guide covers everything you need to know about filing cryptocurrency taxes in Germany in 2025, from identifying taxable events and income to filing your return with the Federal Ministry of Finance (Bundesministerium der Finanzen or BMF), the German tax authority. 

Is crypto taxable in Germany?

In short, yes, crypto is taxable in Germany. The BMF classifies cryptocurrencies as private assets (Privatvermögen). Gains from disposals are generally taxed under §23 Abs. 1 Nr. 2 S. 1 of the Income Tax Act (Einkommensteuergesetz - EStG). But there’s good news for long-term holders: If you hold assets for more than one year, all gains from selling or trading crypto are completely tax-free.

How much tax do you pay on crypto in Germany?

Germany recognizes two main categories of taxable crypto activity: crypto gains from crypto sales or trades and crypto income from other types of earnings. 

• Crypto gains: If you sell or trade crypto for fiat or another digital asset within one year of acquiring it, the profits are taxable, but only if your annual gains exceed 1.000 €. After one year, any gains are completely tax-exempt. 
• Crypto income: The BMF treats cryptocurrency activities other than buying and selling, such as staking, mining, referral bonuses, and receiving payment in crypto, as income under §22 EStG. The filer pays tax on those gains according to their personal income tax rate, which ranges progressively from 14% to 45%. However, if your total miscellaneous income under §22 Nr. 3 EStG (such as staking, mining, or referral rewards) is less than 256 € in a calendar year, it is tax-free under the exemption threshold. In addition, digital assets received as a fork are not considered income and only trigger tax as a private sale gain if the filer sells them within one year of the original acquisition.

Here’s a breakdown of Germany’s tax rates by income: 

German Income Tax Rates for the 2024 Tax Year

German Income Tax Rates for the 2025 Tax Year

Source: Germany - Individual - Taxes on personal income 

Note: A 5.5% solidarity surcharge (Solidaritätszuschlag) may also apply at higher income levels.

Who collects crypto taxes in Germany?

The sole authority responsible for collecting crypto tax in Germany is your local tax office (Finanzamt). The BMF issues official tax guidelines, and the Federal Central Tax Office (BZSt) handles administrative tasks, such as issuing tax IDs and managing international data exchange. But it’s your Finanzamt that reviews your annual tax return and collects any taxes you owe. 

When do you pay crypto taxes in Germany?

In Germany, you report and pay crypto taxes annually on your income tax return (Einkommensteuererklärung). If you file on your own, the deadline is 31 July of the year following the tax year (31 July 2025, for the 2024 tax year). If you use a tax advisor (Steuerberater), you have until 28 February of the second year following the tax year. The BMF strictly enforces these dates, so it’s important to plan ahead. You must report all taxable crypto activity, including private sale gains and crypto income, for the relevant tax year, which runs from 1 January to 31 December.

How are crypto gains and losses taxed in Germany?

We've already established that Germany taxes crypto gains as private sale gains. If you sell or trade crypto within one year of acquisition, and your total profits for the year are more than 1.000 €, those gains are taxed at your personal income tax rate (anywhere from 0% to 45%, depending on your bracket).

If you hold crypto for over a year, any realized gains when you eventually sell or trade it are tax-free. This one-year holding rule makes Germany especially favorable for long-term crypto investors.

Conversely, losses from crypto sales can offset other private sale gains within the same tax year. If your losses exceed your gains, you can't deduct the excess from other types of income. However, you can carry unused losses back to the previous year or forward to future years, but only to offset gains from similar private sales under § 23 EStG.

Just as long-term gains are tax-free, long-term losses are no longer deductible. Therefore, investors need to monitor assets held at a loss and consider realizing those losses before the one-year holding period ends.

What’s the formula for calculating crypto gains?

To calculate a gain or loss on crypto, subtract the original purchase price from the selling price: 

Gain = Selling price – Purchase price

Example 1: Taxable gain

Let’s say you bought one Bitcoin (BTC) for 55.000 € in September 2024 and sold it for 105.000 € in January 2025 (less than one year). 

Gain = 105.000 € – 55.000 € = 50.000 €

Since your total gains exceed the 1.000 € exemption, the 50.000 € is taxable at your personal income tax rate.

Example 2: Tax-free gain

Now, imagine you bought one Ethereum (ETH) for 1.500 € in October 2023 and sold it for 3.300 € in January 2025 (more than one year).

Gain = 3.300 € – 1.500 € = 1.800 €

Because you held the asset for over a year, the 1.800 € gain is fully tax-free.

Example 3: Crypto loss

But what if you bought 0.5 BTC for 52.000 € in December 2024 and sold it for 37.500 € in April 2025?

Loss = 37.500 € - 52.000 € = -14.500 €

This loss can offset other private sale gains in the same tax year. But remember, if your losses exceed your gains, you can’t deduct the loss from other types of income. However, you can carry it back to the previous tax year or forward to offset future private sale gains.

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Which cost basis method to use

If you’ve bought the same cryptocurrency multiple times at different prices, you’ll need to apply a cost-basis method to calculate your gains accurately.  

In Germany, the preferred method for calculating gains is First-In, First-Out (FIFO). Under FIFO, the first crypto you buy is the first you sell. While other methods like Last-In, First-Out (LIFO) exist, most crypto taxpayers in Germany use FIFO because it aligns with official tax rules under §23 EStG, makes it easy to track which units you sold, and produces accurate taxable gain calculations.

FIFO example

In January 2025, you buy 1 BTC for 90.000 €. In March 2025, you purchase another  BTC for 80.000 €. In May 2025, you sell 1 BTC for 110.000 €.

Using FIFO, you sell the first BTC (bought for 90.000 €), so the gain is: 

110.000 € – 90.000 € = 20.000 €

What about stolen or lost crypto? 

In general, you can’t deduct lost or stolen crypto because German tax law doesn’t treat those events as a sale. However, there are caveats: If you can provide clear, verifiable proof, such as a police report, a hacked wallet with supporting blockchain evidence, or other official documentation, and your local Finanzamt accepts it, the loss may qualify as deductible.

However, these cases are complex, and German tax authorities review them on a case-by-case basis. It's strongly recommended to consult a tax advisor (Steuerberater) before attempting to claim this type of loss. 

Which crypto transactions are taxable in Germany?

Not all crypto transactions in Germany trigger taxes. Buying crypto with fiat, transferring assets between your own wallets, and holding crypto long-term are tax-free. But under German tax law, several common activities are considered taxable events. Here’s how Germany’s tax authority treats different types of transactions:

Selling crypto for fiat currency

One of Germany’s most common taxable events is selling your cryptocurrency for euros or any other fiat currency within a year of acquisition. In German tax law, short-term means holding crypto for one year or less, while long-term means holding it for more than one year. As noted above, you calculate gains by subtracting the purchase price from the selling price. If your total gains for all short-term crypto sales exceed the 1.000 € annual tax-free threshold, the entire amount is taxable.

Trading one crypto for another 

Swapping one cryptocurrency for another, such as Bitcoin (BTC) for Ethereum (ETH) or ETH for a stablecoin, is treated as a taxable sale if you held the sold crypto for one year or less and your gains exceed 1.000 €.

Spending crypto on goods/services

Using crypto to pay for goods or services, such as dinner, clothing, or online shopping, is considered a taxable event if you held the crypto for one year or less and your total gains exceed 1.000 € in the same tax year.

From a tax perspective, German authorities view this as a two-step process: first, you sell the crypto for its fair market value (FMV) in euros. Then you use those euros to make the payment. The gain equals the FMV at the time of the transaction minus the purchase price.

Selling or trading NFTs

For tax purposes, Germany treats selling or trading non-fungible tokens (NFTs) similarly to other cryptocurrencies. If you sell or trade an NFT that you hold for one year or less, and your gains exceed 1.000 €, that profit is taxable. Hold the NFT for more than one year, and the gain is tax-free.

Gifting crypto above the exemption threshold

Private sale gains under §23 EStG don’t apply to gifts, so gifting crypto is not a taxable event for the giver. However, gifts may be subject to gift tax (Schenkungsteuer) if their value exceeds certain exemption thresholds. These thresholds vary based on the relationship between the giver and the recipient and generally range from 20.000 € to 500.000 € over a 10-year period. Tax rates range from 7% to 50%, and the exemption limits reset every 10 years. To determine the value of a crypto gift, you generally use its fair market value on the day it was given.

Which crypto activities are treated as income in Germany? 

Beyond selling and trading, several crypto activities fall under §22 EStG and are considered taxable income. In each case, the FMV in euros at the time of receipt determines the income amount. If your total income from these miscellaneous activities is less than 256 € in a calendar year, it’s tax-free.

To help ensure your reporting is accurate, regardless of how you receive crypto income, it's a good idea to save a timestamp or screenshot showing its value in euros at the time of receipt, or use software like CoinTracker to record this automatically.

Getting paid in crypto 

Receiving crypto as payment for work, services, or employment in Germany is treated as taxable income. You pay tax on the euro value of the crypto at the time you receive it, using your personal income tax rate outlined in the tables above.

Mining rewards 

Mining crypto as a private individual is typically classified as other income (sonstige Einkünfte) under §22 Nr. 3 EStG. You pay tax on the FMV of the crypto at the time you receive the block rewards. If you later sell the mined crypto within one year of receipt, any gains are taxable as private sales under §23 EStG; if sold after more than one year, the gain is tax-free.

Staking rewards 

Rewards from staking activities, which involve locking up crypto to validate transactions and secure the blockchain network, are also considered taxable income under §22 EStG. Similar to mining, you pay tax based on the FMV of the staking rewards in euros at the time you receive them.

Airdrops 

In Germany, whether airdrops are taxable or exempt depends on how you acquire them: 

• Tax-free airdrops: If you receive cryptocurrency through an airdrop without providing a service or taking action in return, the airdrop is tax-free. However, the acquisition cost is considered 0 €, so any gain is fully taxable if sold within one year and your total annual gains exceed 1.000  €.
• Taxable airdrops: If the airdrop requires you to perform a specific task,  such as signing up for a new platform or promoting a project, it is considered taxable income under §22 Nr. 3 EStG. The FMV of the airdrop at the time of receipt is treated as income and it is taxed at your personal income tax rate if your other income exceeds the 256 € exemption.

DeFi earnings

Income from decentralized finance (DeFi) activities, such as providing liquidity to pools, lending, and yield farming, is generally considered taxable under §22 Nr. 3 EStG if the earnings are measurable. Examples of identifiable income include interest payments and liquidity provider fees, which are considered income based on their FMV in euros at the time of receipt.

Referral bonuses 

Crypto received as a reward for referring new users to a platform, protocol, or service is also considered taxable income based on its FMV in euros when you acquired it.

Hard forks with value received

Hard forks occur when a blockchain splits into two separate chains, such as when Bitcoin forked to create Bitcoin Cash (BCH). This process creates new tokens on the new chain (BCH), which are typically distributed on a 1:1 basis to holders of the original token (in this case, BTC). 

According to the BMF, newly created coins from a hard fork are not taxable at the time of receipt. Instead, the acquisition date of the original coin carries over to the new coin. The acquisition cost is typically split between the original and new coins based on their relative fair market values at the time of the fork. If the new coin has no determinable market value, an acquisition cost of 0 € may be assigned.

If you sell the coins within one year of the original acquisition date, any gain is taxed as a private sale under §23 EStG, subject to the 1.000 € exemption. If you sell after holding it for more than one year, the gain is tax-free.

Are there any other taxes (e.g., wealth tax)?

There’s no annual wealth tax on crypto holdings in Germany. However, depending on your situation, you may be subject to the solidarity surcharge or church tax:

• Solidarity surcharge (Solidaritätszuschlag): Germany applies a 5.5% surcharge on your income tax liability, but only after you exceed certain income tax thresholds. For single filers, the surcharge begins phasing in above an income tax burden of 19.950 € (around 73.463 € in taxable income), and for married couples filing jointly, above 39.900 € (around 146.926 € in taxable income). The full 5.5% rate applies at approximately 105.500 € (singles) or 211.000 € (couples) in taxable income.
• Church tax (Kirchensteuer): This mandatory tax applies to registered members of state-recognized religious communities. It typically amounts to 8%–9% of your income tax, which the state collects and transfers to the religious organization.

How to report and file crypto taxes in Germany

Tax time in Germany can feel intimidating, especially if you’re reporting your crypto taxes for the first time. But with the right tools and information, it’s easier than you might think. 

What tax forms do you need to file? 

To stay compliant, you’ll need to include your crypto activity on the appropriate tax forms when filing your annual return. Germany distinguishes between different types of crypto gains and income, so be sure you’re using the right form for each: 

• Anlage SO (Sonstige Einkünfte – Other Income): This is Germany’s primary tax form for reporting private sale gains from cryptocurrency held for one year or less, provided your total gains exceed the 1.000 € exemption. It also covers miscellaneous crypto income from activities like staking, mining, lending, and taxable airdrops (all taxed under §22 EStG).
• Anlage KAP: This form is used for reporting gains from crypto derivatives, including margin trading and futures. Germany taxes these as investment income, not private sales.

How to file: DIY, tax software, or tax advisor 

Once your forms are ready, you have a few options for filing your crypto taxes. Each has its pros and cons, depending on your experience level and the complexity of your crypto activity.

• DIY with ELSTER: ELSTER is Germany’s official online tax filing portal (Finanzverwaltung). It’s free to use and supports full digital submission. However, it assumes you already understand how to calculate and report your crypto activity correctly.
• Tax software: Programs like WISO Steuer offer a more guided, user-friendly experience than filing directly through ELSTER. They walk you through your return step by step and autofill tax forms based on your inputs. While CoinTracker doesn’t file directly, it generates accurate reports of your crypto gains and income, which you can import into tax software like WISO to complete your return.
• Tax advisor (Steuerberater): For complex situations, such as high trade volume, cross-border activity, or DeFi income, a Steuerberater is a wise investment. They’ll ensure you’re in full compliance with German tax law and may help reduce your overall tax liability. They can also file your tax return on your behalf. In addition, your filing deadline is extended to 28 February of the second year following the tax year.

Whether you plan to file on your own or work with a tax advisor, it’s best to start preparing early. Gathering the right tax documents ahead of time can help you avoid last-minute stress or potential penalties.

Crypto taxes in 2025: Simple and secure with CoinTracker 

Germany’s crypto tax rules can be a lot to wrap your head around, especially if you’re new to the system. But staying compliant is much easier when everything’s in one place. CoinTracker helps you document every transaction, calculate gains and income, and generate ready-to-file reports for yourself or your Steuerberater.

Whether you’re reporting staking rewards or private sale gains on Anlage SO, CoinTracker keeps your records aligned with BMF guidelines. And with Germany’s tax-free rule for crypto held longer than a year, it’s easier to plan ahead and potentially lower your tax bill.

Join over 2 million users who trust CoinTracker to simplify crypto taxes. Start free today.