German Crypto Taxes Are Generous — If You Get Them Right
The 1-year holding exemption is one of the best tax breaks in crypto. But between FIFO calculations, the €1,000 Freigrenze threshold, and staking income rules, it's easy to overpay. We make sure you don't.
German crypto tax at a glance.
Tax treatment of common activities.
How Germany taxes different crypto activities under §23 EStG.
| Activity | Taxable? | Notes |
|---|---|---|
| Selling crypto (held <12 months) | Yes | Income tax rate on gains above €1,000 Freigrenze |
| Selling crypto (held >12 months) | No | Completely tax-free regardless of gain amount |
| Crypto-to-crypto swap | Yes | Each swap is a separate disposal. Both legs taxed if held <12 months |
| Staking rewards | Yes | Income at FMV when received. €256 annual exemption. 12-month clock starts from receipt |
| Mining rewards | Yes | Income or business income. €256 exemption if hobby |
| Airdrops | Yes | Income at FMV when received |
| Buying crypto with EUR | No | But track cost basis carefully |
| HODLing | No | No wealth tax on crypto in Germany |
| Gifting | Depends | No CGT for giver. Recipient may owe gift tax if above thresholds (€20k–€500k) |
| NFTs | Depends | 12-month exemption applies. Creating/selling NFTs = business income |
Rules you need to know.
The 1-Year Rule is Everything
Germany’s biggest advantage. Hold any crypto asset for 12+ months and the entire gain is tax-free, no matter how large. This makes Germany one of the most crypto-friendly countries in the world for long-term holders. But the clock resets if you swap tokens.
The Freigrenze is a Cliff, Not a Deduction
The €1,000 annual short-term gains exemption is a threshold (Freigrenze), not an allowance (Freibetrag). If your total short-term gains are €999, you pay zero tax. If they’re €1,001, the ENTIRE €1,001 is taxable. This catches people off guard.
Staking No Longer Extends the Holding Period
Previously, using crypto in staking/lending extended the tax-free holding period to 10 years. This was changed — staking no longer extends the holding period beyond 12 months. But staking REWARDS are still taxable income when received (€256 exemption).
DAC8 is Coming
From 2026, European crypto platforms must report all customer transactions to German tax authorities under the DAC8 directive. The BZSt is already deploying advanced analytics tools. Voluntary disclosure before enforcement tightens is strongly recommended.
Sound familiar?
We reconcile all trades in Koinly, apply FIFO correctly, and separate short-term taxable gains from long-term tax-free gains. Most clients find they owe much less than they feared.
We calculate the income value at receipt for each reward batch, apply the €256 exemption, and prepare the Anlage SO entries. If you’re under the threshold, you may owe nothing.
This usually means the holding period wasn’t calculated correctly, or FIFO wasn’t applied properly. We rebuild the full transaction history and prove which assets qualify for the 12-month exemption.
German crypto tax questions.
Is crypto tax-free in Germany?
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Short-term gains above €1,000 are taxed at your income tax rate (up to 45%). But if you hold crypto for more than 12 months, gains are completely tax-free regardless of amount.
How does the Freigrenze work for crypto?
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The €1,000 annual exemption is a threshold, not a deduction. If total short-term gains are under €1,000, you pay zero. If they exceed €1,000, the entire amount is taxable.
Does staking reset the 12-month holding period?
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No, not anymore. Staking no longer extends the holding period. But staking rewards are separately taxable as income when received, with a €256 annual exemption.
Your German Crypto Tax Filing Checklist
Everything you need before filing. Tick these off and you're ready.
- ☐All exchange accounts (Binance, Kraken, Coinbase, Bitvavo, etc.) — API keys or CSV exports
- ☐DeFi wallet addresses (MetaMask, Ledger, etc.)
- ☐Staking reward records with dates and EUR values at receipt
- ☐Mining records (if applicable) — dates, amounts, EUR values, expenses
- ☐Records of any crypto gifts given or received
- ☐Previous Anlage SO filings (if any)
- ☐Steueridentifikationsnummer (tax ID)
- ☐Purchase dates for all holdings (critical for 12-month exemption proof)
- 💡DAC8 takes effect in 2026 — European platforms will report all transactions to German tax authorities automatically.
Get your German crypto taxes sorted.
Finanzamt-ready reports within 10 calendar days. Fixed pricing. No surprises.
Get Your German Crypto Tax Quote →This page provides general guidance about German crypto taxation and is not personalised tax advice. Tax rules change frequently. Consult a qualified Steuerberater for advice specific to your situation.