Crypto Taxes in Germany: How to Optimize Gains (2025 Guide)
- Èric Lluch
- Aug 3
- 4 min read
Disclaimer: This Is Not Financial or Tax Advice
This article represents my personal interpretation of the current crypto tax rules in Germany as of 2025. Tax law is complex and subject to change. I recommend discussing your individual case with a licensed Steuerberater (tax advisor). If you spot any inaccuracies in my understanding, feel free to reach out: I'm always open to updates. (Free PDF at the end)
Overview: Germany’s Approach to Crypto Taxation
Germany treats cryptocurrencies like Bitcoin and Ethereum as private assets (Privatvermögen), not as currencies or securities. This has a few key implications:
Capital gains are tax-free if you hold your crypto for more than 12 months before selling.
If you sell within 12 months, gains over €600 per year are taxable.
Staking, lending, and other crypto income used to extend the holding period to 10 years, but this was changed in 2022.
The Golden Rule: 12-Month Holding Period = Tax-Free
The biggest tax advantage in Germany is this:
If you hold crypto for more than 12 months, your capital gains are 100% tax-free.
This includes:
Buying and holding BTC, ETH, or any altcoin for 12+ months.
Even if you stake or lend the coins during that time (new rule as of 2022).
Previously, staking or lending reset the holding period to 10 years, but the German Ministry of Finance changed that in May 2022. Now, even staked coins can be sold tax-free after one year.
Example:
You bought ETH in March 2023.
You staked it on Nexo from April 2023 to March 2024 while earning 7% on Nexo coins per year.
You sell in May 2024.
Your gains are tax-free, assuming it’s been 12+ months.
You have to pay taxes on the 7% Nexo coins that you have acquired during the year and it counts the price where the coins were given to you. Fortunately, this is already summarized in most of the staking or holding exchanges such as Nexo, Binance, or even YouHolder.
Important: Selling within 12 months is still taxed (all your coins are then taxable, not only after the 600€ benefit) if your gains exceed €600/year.
Taxable Crypto Events in Germany
While long-term gains can be tax-free, not all crypto activity is.
Here are some taxable events under current German law:
1. Selling Crypto Within 12 Months
Taxable if your total gains exceed €600/year.
Reported as other income (private Veräußerungsgeschäfte).
2. Staking/Lending Rewards
Rewards (interest, staking income, airdrops) are considered income when received.
Valued at market price on the day you receive them.
3. Trading One Coin for Another
Swapping ETH for BTC is a taxable event.
Treated the same as selling ETH, then buying BTC.
4. Using Crypto to Pay for Goods/Services
Spending crypto triggers a taxable disposal.
Non-Taxable Events
Some common actions are not taxable:
Buying crypto with fiat (EUR).
Transferring crypto between your own wallets.
Holding for over 12 months and then selling.
Gifting crypto under €20,000/year (between private individuals) in Germany (without respecting the 12 months holding limit). Also, as with the rest of wealth, you can give up to 500k to your spouse every 10 years in Germany.
How to Track and Report Crypto Taxes in Germany
1. Track Every Transaction
Use a portfolio tracker or crypto tax tool or do it yourself in Excel if you want to save money (that's what I do):
Blockpit (Austria-based, German tax integration)
CoinTracking (very detailed, supports FIFO/LIFO)
Accointing (user-friendly, now part of Glassnode)
Koinly (simple interface, EU support)
2. Choose a Tax Method: FIFO vs LIFO
FIFO (first in, first out) is the default in Germany.
You may switch methods annually, but be consistent.
3. Generate a Tax Report
Many tools let you export Steuer reports directly for your tax advisor.
Pro Tips to Optimize Your Crypto Tax Position
Hold Long-Term Whenever Possible
Use the 12-month rule to legally avoid capital gains tax.
Use Staking Platforms That Don't Force Custody
Platforms like Lido, Rocket Pool let you stake ETH without moving it to a centralized exchange.
Harvest Losses to Offset Gains
If some coins are in loss, sell and rebuy to offset taxable gains elsewhere (be aware of wash-sale rules).
Keep Detailed Records
Track all acquisitions, swaps, staking dates, and fiat conversions.
Conclusion: Play the Long Game, Legally
Germany has one of the most crypto-friendly tax regimes in Europe if you follow the rules:
Hold for 12+ months and sell tax-free
Track staking and income as it’s received
Use tax tools to keep it clean
These strategies are based on current guidance from the BMF (Bundesministerium der Finanzen) and top German tax advisors.
Want to make your crypto FIRE plan tax-smart? Download the FIRE + Crypto Checklist or join the newsletter for updates.
📈 Free PDF Download: "Crypto Tax Optimizer Checklist for Germany"
Includes:
Taxable vs non-taxable event chart
12-month holding strategy flowchart
Top crypto tax tools
→ Download Now (PDF)
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