Crypto tax in Germany: hold a year, and the picture changes

Germany is the outlier

Of the four countries this site covers, Germany is the only one where a private investor can sell a large crypto position and, quite legally, owe nothing — because German law does not put crypto in a capital gains regime at all. Coins are “other economic goods” (sonstige Wirtschaftsgüter), and selling them is a private sale under §23 EStG — the same framework that covers selling, say, gold or art. That framework turns almost entirely on time.[1]

If you are an expat or an international reader searching German rules in English: everything below is federal income tax law, applied per calendar year, and confirmed by the BMF’s consolidated guidance letter on cryptoassets (10 May 2022, updated 6 March 2025).

The one-year rule

• Dispose after more than one year: the gain is tax-free — with no cap on the amount.
• Dispose within a year: the gain joins your income and is taxed at your progressive personal rate.
• “Dispose” covers selling for euros, swapping coin for coin, and paying with crypto. Each lot’s holding period runs from its own acquisition date, with FIFO commonly used to match lots.

Two limits, and a trap in the vocabulary

Quick-reference table

Staking, lending and airdrops

For years a rumour circulated that staking or lending your coins stretched the holding period from one year to ten. The BMF has put that to rest: the period stays one year, staked or not.[1]

The rewards themselves are a different matter. Staking rewards and lending interest are generally other income under §22 EStG, taxed at their euro value when received, under the €256 Freigrenze. The rewarded coins then start their own one-year holding clock from the day they arrive. Airdrops turn on whether anything was done in return — treatment varies enough that the BMF letter and a Steuerberater are the right sources for a real case.

Rates, Soli and losses

• Income tax: progressive 14%–42%, rising to 45% at very high incomes; the 2025 basic allowance (Grundfreibetrag) is around €12,096 — check the official figure when filing.[2]
• Solidarity surcharge: 5.5% on top of income tax, but since 2021 only for higher earners; church tax may apply separately.
• Losses: private-sale losses only offset private-sale gains — current year or carried — never salary or other income categories.

A worked example (mechanics only, not a tax estimate)

In Germany the calendar does most of the work. Three moves, three outcomes:

• Sold BTC held for fourteen months: a private sale past the one-year mark — the gain is exempt, however large.
• Swapped ETH into SOL eight months after buying: a disposal inside the year, so the gain is taxable, computed from euro values at acquisition and swap, lots matched FIFO. It counts toward the €1,000 Freigrenze.
• Received staking rewards: other income at euro market value on arrival (the €256 limit applies), and those coins begin their own one-year clock for any later sale.

Hold the three rules together — over a year means exempt, swaps inside a year count, rewards are taxed on arrival — and most German crypto questions answer themselves.

Fine print people miss

• “Exactly one year” is not enough. Exemption needs more than a year — a year and a day at minimum. Gains at exactly one year are still taxable private sales.
• A €1,000 gain is fully taxable. The Freigrenze exempts totals below €1,000; landing on it means the whole gain is taxed.
• Swapping and spending inside the year both count. No euros need to arrive for §23 to apply.
• Rewards are taxed twice-ish — but at two different moments. Once as other income at receipt, then any later growth as a private sale. People who remember only “a year means tax-free” miss the first step.
• Lot-level records are non-negotiable. FIFO needs each coin’s acquisition date; without it, nobody can say which sale crossed the one-year line. See Keeping transaction records.

Filing: Anlage SO

• Tax year: the calendar year. Taxable private sales go on Anlage SO of the income tax return.
• Deadline: normally 31 July of the following year when filing yourself; engaging a Steuerberater generally extends the statutory deadline. Confirm the current year’s dates officially.
• The BMF’s 2025 update leans harder on documentation and declaration duties — one more reason complete records matter here.

Official sources

• [1] BMF, Einzelfragen zur ertragsteuerrechtlichen Behandlung von Kryptowerten (10 May 2022, updated 6 March 2025) — bundesfinanzministerium.de; §23 EStG — gesetze-im-internet.de/estg/__23.html
• [2] Income tax rates and basic allowance (official calculator) — bmf-steuerrechner.de

Figures apply to the 2025 tax year and were checked against the official sources on 1 September 2026. The BMF’s current position and the statute take precedence.