How is crypto taxed in Germany?

Crypto taxes in Germany are among the most talked about in Europe because of the one-year rule. If you hold crypto privately for more than a year before selling or swapping it, the gain is generally tax free. Sell sooner and the gain is added to your income and taxed at your personal rate.

What is the one-year holding period for crypto in Germany?

German tax law treats private crypto as a private sale transaction under section 23 of the Income Tax Act. A Federal Fiscal Court ruling in February 2023 confirmed that crypto falls under this rule. Gains are taxable only if no more than one year passes between buying and disposing of the coin.

A disposal is not only a sale for euros. Swapping one crypto for another, including into a stablecoin, or spending crypto on goods counts as disposing of the coin you give up. So a quick swap within a year can create a taxable gain even if you never cash out.

Is crypto tax free in Germany under 1,000 euros?

Short-term gains can be. From the 2024 tax year, total gains from private sales are tax free if they stay below 1,000 euros for the year. The limit was 600 euros through 2023.

This is an exemption limit, not an allowance. If your gains reach 1,000 euros, the full amount becomes taxable, not just the part above the line. Taxable gains have no special rate. They are taxed at your personal income tax rate, which for 2025 single filers ranges from 14% to 45% above a basic allowance, plus a possible solidarity surcharge and church tax.

How is staking taxed in Germany?

Staking and lending rewards count as other income at their euro value when you receive them. They are tax free if this type of income stays below 256 euros for the year, and fully taxable once it reaches that amount. The value at receipt becomes the cost basis for those coins, and a new one-year holding period starts.

Staking your coins does not extend the holding period to ten years. For the general concept, see is crypto staking taxable.

Are Germany's crypto tax rules changing?

The Federal Ministry of Finance issued an updated guidance letter on March 6, 2025, replacing its May 2022 letter. It adds detailed record-keeping duties, so investors are expected to keep transaction histories and exchange reports, including for DeFi activity.

Bigger changes are being debated. In May 2026, the Green parliamentary group introduced a bill to scrap the one-year exemption, but it did not pass. In September 2026, reports said the Finance Ministry had drafted a plan to tax crypto bought from 2027 at the 25% flat tax on capital income, regardless of holding time, with older coins keeping the current rule. As of October 2026 that draft is not law, and the one-year rule still applies. You can compare other countries in crypto tax around the world, or read about crypto losses and taxes.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.