Is crypto mining legal in Germany?

Crypto mining in Germany is legal as of November 2026. No law bans it, and running your own rigs does not require a licence from the financial regulator BaFin. The real questions are tax and the cost of power, since Germany treats mining as an economic activity whose rewards count as income.

Is bitcoin mining legal in Germany?

Yes. Germany regulates crypto businesses under the EU's MiCA rules, explained in is crypto legal in Germany. BaFin's information sheet lists ten crypto-asset services that need authorisation, such as custody, running a trading platform and exchanging crypto for money. Mining is not one of them. The sheet notes that miners, validators and nodes that confirm transactions are not providing transfer services.

BaFin also says a contract made only in your own interest does not meet the definition of a service. So a person or company mining for its own account falls outside the licensing regime. A business that later sells, stores or exchanges coins for clients is a different matter.

Is crypto mining illegal in Germany?

No. Germany has no mining ban and no mining-specific licence, though the ordinary rules for running any business still apply. Mining on someone else's hardware or power without permission is not mining in the legal sense; it is closer to cryptojacking. For the hardware side, see how bitcoin mining works.

How is bitcoin mining taxed in Germany?

The Federal Finance Ministry (BMF) set out its view in a letter dated March 6, 2025, PwC Germany reported. According to BTC-Echo, the letter continues to classify mining as a commercial activity, so rewards are business income. Haufe's commentary on the letter explains the fallback. If mining is not commercial, for example because it lacks the sustained character of a business, the rewards are other income under section 22 no. 3 of the Income Tax Act. That category also covers coins from mining pools and cloud mining.

Either way, mined coins are valued at their market price when received. Haufe notes that hardware, software and other costs can be deducted. Selling the coins later is a separate event, and the general rules on private sales, including the one-year holding period, are covered in how crypto is taxed in Germany. Germany is debating changes to those rules from 2027, so check the current position.

Do German miners pay VAT?

Generally not on the mining itself. In a February 27, 2018 letter, the BMF said miners' services are non-taxable for VAT. New bitcoin from the network is not payment for a service, because there is no identifiable recipient, and transaction fees are voluntary and not directly linked to the miner's work. For a wider comparison, see how crypto mining is taxed.

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