Michelle Legge
By Michelle Legge ‚ÄĘ Head of Crypto Tax Education
Updated Jan 2, 2024
Danny Talwar
Reviewed by Danny Talwar
Head of Tax
This article has been fact checked and reviewed as per our editorial policy.

Crypto Tax Guide Germany 2024 [Kryptowährung Steuer]

Need to know about crypto taxes in Germany? Cryptocurrency transactions are subject to Income Tax in Germany, but it pays to hodl. The German Federal Central Tax Office or Bundeszentralamt f√ľr Steuern (BZSt) has set out strict guidelines on how cryptocurrency buying, trading, and mining are taxed. This guide breaks down everything you need to know about crypto tax in Germany, how much tax you'll pay, how to file crypto taxes, and how to avoid crypto tax - legally - all ahead of the July 31st deadline. Find out more in our Kryptow√§hrung Steuer Guide.

Do you pay cryptocurrency taxes in Germany?

Yes. Crypto is taxed in Germany. The BSZt is clear that short-term capital gains from crypto held less than one year and any additional income from crypto - like mining or staking rewards - is subject to Income Tax.

How much tax do you pay on crypto in Germany?

The tax rate you'll pay is the same as your regular Income Tax rate - up to 45% plus potentially the 5.5% Solidarity Tax. But if you hodl for a year, you'll pay no tax at all on your crypto gains.

How much crypto tax in Germany

This guide is regularly updated

One last thing before we start - the rules on crypto tax are in constant flux. At Koinly we keep a very close eye on the BZSt's crypto policies and regularly update this guide to keep you informed and tax-compliant.

19 December 2023: Updated for 2024!
11 September 2022: Tax rates updated.
26 July 2022: Updated tax deadline.31 May 2022: Updated BMF guidance and new tax forms.
3 May 2022: Updated to reflect new rules on staked crypto (now tax free after 1 year!)
15 February 2022: Updated to reflect impending EU Dac8 directive.
25 November 2022: Updated for the 2022 tax year.
18 May 2021: Welcome to your German cryptocurrency tax guide.

General CTA

Can the BZSt track crypto?

Yes, the BZSt can track crypto. If you have an account with a European digital currency exchange, the BZSt probably already has your data. When the EU's Sixth Anti-Money Laundering Directive came into force on June 3, 2021, companies providing financial services to cryptocurrency customers had to comply with stricter regulations for identifying customers. The directive aimed to combat money laundering and illegal activities by sharing data between EU member states. In 2025, a new EU directive called Dac8 is expected to take effect, granting the BZSt the power to verify crypto ownership. This means that the German tax office may be able to examine crypto companies' accounts and gain insights into crypto assets.

How is crypto taxed in Germany?

Unlike in many other countries, cryptocurrency is viewed as a private asset in Germany, as opposed to property - which has some distinct tax implications. It means crypto attracts an individual Income Tax, rather than Capital Gains Tax - but only in specific circumstances.

When you dispose of a private asset, like crypto, the tax rules change depending on how long you've held the asset for. If you've held your crypto for less than a year, you'll pay Income Tax on any profits from a disposal. Disposals include selling your crypto for EUR (or any other fiat currency), swapping your crypto for another cryptocurrency, or spending your crypto on goods and services. However, if you have an annual net gain of less than ‚ā¨600 you do not need to file a tax return.

Meanwhile, if you've held your crypto for more than a year, you can dispose of your private asset completely tax free, so it pays to hodl!

As well as the above, there are some crypto transactions considered income - like mining or staking rewards - that you'll need to pay Income Tax on too. However, you'll only need to file a tax return if you earn above ‚ā¨256 threshold each year for additional income.

With that brief intro to crypto taxes in Germany out the way - let's take a quick look at the Income Tax rates to see how much you might pay.

How's crypto taxed in Germany

German Income Tax Rate

In Germany, your individual Income Tax rate is used to tax short-term cryptocurrency gains. As well as Income Tax, everyone has to pay Solidarity Tax (Solidaritätszuschlag or 'Soli'). This surcharge is imposed as a percentage of all individual income taxes - but has been substantially reduced as of 2021.

The German Income Tax rates for the 2023 financial year you'll be reporting on in 2024 are:


Single taxpayersMarried taxpayersTax Rate
‚ā¨0 to ‚ā¨10,632‚ā¨0 to ‚ā¨21,2640%
‚ā¨10,632 to ‚ā¨61,971‚ā¨21,264 to ‚ā¨123,94214 to 42%
‚ā¨61,971 to ‚ā¨277,825‚ā¨123,942 to ‚ā¨555,65042%

Remember, the decisive factor for whether or not you'll pay tax on profits from selling, swapping, or spending crypto is the holding period. If you've held your crypto for more than one year, your profits are exempt from tax. If you've held your crypto for less than one year, your profits will be taxed at your regular Income Tax rate from the tables above.

The BMF has also recently clarified that this year holding period also applies to crypto that you've lent or staked - so provided you've held your asset for more than one year, even if you've staked or lent it, it is tax free. Previously many investors believed this holding period was 10 years.

Crypto losses in Germany

If you've sold, swapped, or spent crypto within one year and made a loss instead of a profit, you won't pay tax on it. However, you should track these losses as you can offset these losses against your profits to reduce your overall tax bill. If you have no profits to offset losses against, the German Tax Act allows taxpayers to carry forward losses to future financial years to offset against future gains, but only if you report your losses in your tax return.

Lost or stolen cryptocurrency

You may be able to claim lost or stolen crypto as a loss with the BZSt. In order to claim this loss, you need to be able to provide certain evidence. This includes:

  • The wallet address that the key belongs to

  • When you acquired the key and when you lost it

  • The cost of acquiring the stolen/lost cryptocurrency

  • The fact that the wallet was controlled by you

  • The amount of cryptocurrency at the time that you lost the key

  • That you possess the hardware where the wallet is stored

  • The transactions to the wallet from an exchange that is linked to your identity

Stolen or lost crypto GermanyIn addition to this, many investors may have financial losses relating to collapsed exchanges or platforms such as FTX or Celsius. In these instances, it's unlikely investors would be able to claim a capital loss until such a time that bankruptcy proceedings have come to a close, as there is still a chance that investors may see some or all of their funds returned to them as part of the proceedings. You should keep good records of your assets held on these platforms should you need them in the future.

DeFi tax

Like many other tax offices, the BZSt is yet to release detailed guidance on DeFi as a relatively new market... but that doesn't mean you won't pay tax on your DeFi investments. Instead, you need to interpret the current guidance on crypto tax from the BZSt and apply it to your DeFi transactions (or better yet, have an experienced crypto accountant do it for you).

We have an entire guide dedicated to navigating DeFi tax in Germany - but in brief, there are a couple of potential tax implications:

  • Earning new tokens via DeFi protocols: Whether you're staking, liquidity mining, or yield farming, it's likely the BZSt will view new tokens or coins as additional income, and therefore your tokens will be subject to Income Tax upon receipt if you're over the ‚ā¨256 additional income threshold.

  • Trading tokens that accrue value: Instead of paying out new tokens, many DeFi protocols opt to use liquidity pool tokens instead, a kind of token you receive to represent your capital in the pool. These tokens generally accrue value based on the rewards you receive from your capital being in the pool. It isn't until you withdraw your capital by trading your liquidity pool tokens back that you'll realise a profit. In these instances, you may have made a taxable transaction depending on how long you've held your original capital and your liquidity pool tokens. For example, if you added assets you've held less than a year to the pool, this would be a short-term trade, and any gain is subject to Income Tax. Meanwhile, if you've held your capital for more than a year, this would be a tax free long-term gain. Similarly, when removing your asset from the liquidity pool by trading your LP tokens back, if you'd held your LP tokens for less than a year, any gain would be taxable, but if you'd held them for more than a year, any gain would be tax free.

Defi tax GermanyRead next: The Ultimate German DeFi Tax Guide

NFT taxes

Although they're unique by nature, NFTs will largely be treated the same as any fungible coin or token in Germany from a tax perspective, although there may be different tax implications if you're an NFT creator.

Selling or swapping NFTs? Or even buying NFTs with crypto? It all depends on how long you've held the asset - if it's less than one year, any profit is subject to Income Tax, if it's more than one year, it's tax free.

Meanwhile, if you're minting and selling NFTs as an artist - this income may be considered income from artistic activity or commercial income and you will need to pay Income Tax, plus potentially Trade Tax. Since the BMF has released no guidance on this yet, we recommend you consult with a crypto accountant.

Mining tax

Whether you're mining Bitcoin, Dogecoin, or Monero, the tax implications are the same. The BZSt is clear that crypto mining rewards are additional income and subject to Income Tax, less expenses.

To calculate what you owe, take the fair market value of your coins on the day you received them in EUR.

You'll also need to calculate any expenses, for example, electricity or equipment costs. You'll pay tax at your normal Income Tax rate on any profit after subtracting your expenses.

You'll also pay Income Tax on any profit when you dispose of any mined coins if you've held the coins for less than a year.

Tax on mining crypto in Germany

Staking tax

Although PoS and PoW are vastly different consensus mechanisms - from a tax perspective, the rewards are treated the same. The BZSt says you'll pay Income Tax on staking rewards based on the fair market value of any coins in EUR on the day you received them.

An important thing to note regarding staking taxes that the BZSt has now clarified is the holding period for staked tokens. Originally, investors thought that they'd pay Income Tax on any profits from disposing of staked tokens held for less than 10 years. However, this has now changed to the standard one-year holding period after updated guidance in 2022.

This means you'll only pay Income Tax on profits when you dispose of staked tokens if you've held them for less than one year, otherwise, it's tax free.

Tax free crypto Germany

Germany is one of the most crypto tax friendly countries in Europe. You won't pay tax on crypto profits when:

  • You sell, swap, or spend your crypto after owning it for 1 year or more.

  • The net gain from your short-term investments is less than ‚ā¨600 for the financial year, as you don't need to file a tax return to report this, however, if your profits are over this amount, you'll pay tax on all your gains.

  • You earn less than ‚ā¨256 in additional income from crypto (and other sources) throughout the financial year as you don't need to file a tax return to report this, however, if your additional income is over this amount, you'll pay tax on all your additional income.

Crypto tax breaks GermanyRead next: Learn how to reduce your crypto tax - legally!

When will you pay tax on crypto in Germany?

You'll only pay tax, as 'other income' on crypto gains:

  • If you sell, swap, or spend crypto in the same year you bought it and realise a net gain of over ‚ā¨600, as you'll need to file a tax return for anything over this amount and pay tax on the full sum.

  • If you sell crypto used in staking/lending protocols within one year.

  • When you're mining, staking, or otherwise earning an income from crypto and earn more than ‚ā¨256 in additional income, as you'll need to file a tax return for anything over this amount and pay tax on the full sum.

Income Tax - Germany

Income Tax vs. Tax Free

Although crypto tax (crypto steuern) can get complicated - from a simplistic perspective, there are only two potential tax implications in Germany when it comes to your crypto.

  1. Taxed: short-term profits when you sell, swap, or spend crypto you've held less than one year, as well as earning crypto through things like mining or staking - but you'll only pay tax if you exceed a gain of ‚ā¨600 as otherwise, you don't need to file a tax return.

  2. Tax free: long-term profits from selling, swapping, or spending crypto you've held for more than one year, annual gains under ‚ā¨600, and additional income less than ‚ā¨256, as well as a variety of other crypto transactions like buying crypto, hodling crypto and gifting crypto.

Tax free crypto Germany

How specific crypto transactions are taxed

Here's a breakdown of the most common crypto scenarios and the type of tax liability they result in:

Selling crypto for more than ‚ā¨600 within 1 year


In Germany, if you sell bitcoins or any other cryptocurrency within twelve months of buying, you will need to pay Income Tax. When trading cryptos privately, it is regarded as any other private trade, for example, selling your car. In a private trade in Germany, you only have to pay taxes on any profits you generate with that trade and only if you sell that item within one year of buying it.

This means that whenever you sell something that you have owned for more than one year, you do not have to pay taxes on the profits you generated with that trade.

To avoid this, you would need to have annual gains of less than ‚ā¨600 or to wait for a year to pass before you sell.

Selling crypto is taxable in Germany


Hilde buys 0.1 Bitcoin in July for ‚ā¨1,000 and sells it in November for ‚ā¨1,800. As she sold her crypto within the same year as buying it and the profit exceeded ‚ā¨600 and therefore she'll need to file a tax return. Hilde has effectively added ‚ā¨800 to her annual income. She will be taxed on this gain, according to her Income Tax bracket.

Trading or exchanging crypto held less than 1 year


Trading one crypto for another (i.e. BTC ‚Üí ETH) is a taxable event in Germany if a profit is made exceeding ‚ā¨600, and if that gain is made in the same year as the initial crypto purchase was made.

Trading with stablecoins held less than 1 year


A stablecoin - like USDT or BUSD, is simply a class of cryptocurrency that offers price stability. That's because stablecoins are backed by a reserve asset, usually a stable fiat currency like USD or EUR. Trading stablecoins for crypto or other stablecoins that you've held for less than a year is a taxable transaction, just like selling crypto you've held for less than a year.

Participating in an ICO/IEO


ICOs (Initial Coin Offerings) or IEOs (Initial Exchange Offerings) refer to a situation where investors can purchase tokens/coins in a yet-to-be-released cryptocurrency/company. This purchase usually happens via an existing cryptocurrency like Bitcoin or Ethereum.

From a German tax perspective, this could amount to a crypto-to-crypto trade. The taxable event is triggered on the date of the ICO transaction when you receive the new tokens. When you sell the new tokens at a later date, the cost base of that transaction will be the value of the cryptocurrency that you paid for it on the date of the ICO/IEO.

You will only be taxed if you dispose of the new coins within a year of purchase.

Crypto margin trading and derivatives


Though they're often lumped in the same breath, margin trading, derivatives, and futures all have different tax treatments. It's important to note the BZSt has not released guidance on the tax implications of crypto margin trading, crypto derivatives, and crypto futures yet - however, they have guidance on these products in traditional markets.

Margin trading? Profits from margin trades can only be classified as capital income if no crypto is delivered but the difference is settled. Meanwhile, if crypto is delivered, this would be viewed as a private sales transaction instead. These two have different tax treatments:

Capital income is taxed at a flat 25% rate (known as a withholding tax).

Private sales transactions are taxed at your regular Income Tax rate if the income is from an asset held for less than one year. More than one year and your profits are tax free.

It's also important to note for capital income that you can only deduct up to ‚ā¨801 per year in income-related expenses (for example trading fees) and the one-year holding period does not apply.

Meanwhile, for derivatives, the tax paid depends on the specific product. Similar to margin trades - it depends on whether the investor ends up acquiring the underlying crypto asset. If your product does not result in you acquiring crypto and instead you end up with the settlement of the difference, the profits will be viewed as capital income and taxed at a flat 25% rate.

Meanwhile, if you end up acquiring crypto at the point you close your position, this will be viewed as a private sales transaction and profits will be subject to the Income Tax rate.

It's important to note that for all of these transactions - you'll only be liable for tax at the point you close your position.

Another important thing to consider is there was a change in the law in 2021 that means for many futures transactions (and potentially some other derivatives products and margin trades) that losses can no longer be offset against income from capital assets without restriction. To elaborate, losses from futures transactions may only be offset against profits from futures transactions and income from options transactions - and there is a ‚ā¨20,000 loss offset limit.

We recommend you speak to an experienced crypto accountant to help you navigate your tax burden when dealing with crypto margin trades, derivatives, or futures.

Spending crypto within a year


Purchases of goods and services with crypto are treated the same as trading crypto in Germany. For example, if you acquire ‚ā¨7,000 worth of ETH and purchase a gaming PC with that crypto when it‚Äôs now all worth ‚ā¨9,000, you will be taxed on the ‚ā¨2,000 net gain on that crypto as if it were income.

You could, however, avoid this tax if you held the ETH for a year before making your purchase. Gains after one year of purchase are tax free.

Selling staked/loaned crypto within 1 year


If you use a staking or lending protocol (or indeed a non-custodial wallet for staking as part of a PoS consensus mechanism), the tax rules change. Prior to April 2022, if you sold crypto used in a staking or lending protocol within 10 years, you'd pay Income Tax on that crypto. However, this has now been changed to a 1-year holding period. So if you sell crypto you've used in a staking or lending protocol within 1 year, you'll pay Income Tax on any profit from that crypto.

Getting paid in Bitcoin or cryptocurrency


Whether you are freelancing or working for a company that pays employees in crypto, you can't escape Income Tax.

Any crypto - BTC or otherwise - received as income is taxed at market value at the time you received them so make sure you declare this income on your annual tax return or you might end up facing the tax hammer.

Sign up and referral bonuses


Any crypto you get in return for signing up or referring users to a service is taxed as income upon receipt.

Receiving an airdrop in exchange for an action or service


The BMF has clarified that there are some specific circumstances in which private investors may be taxed upon receipt of an airdrop of crypto. This includes when you receive the airdrop in exchange for a service - such as sharing a social media post or personal information.

If you don't receive your airdrop in exchange for a service or action - this would not be subject to Income Tax.

Mining crypto


The BMF is clear that many mining operations may be viewed as commercial operations and subject to Income Tax net expenses. This means that where individuals do pay Income Tax on their mining operations - they'll only pay tax on any profit they've made minus any expenses, for example, electricity costs, equipment costs, and so forth.

Mining rewards may not be subject to Income Tax when they do not exceed the threshold limit (Freigrenze) of ‚ā¨256 per calendar year as per Section 22 no. 3 sentence¬†2 German Income Tax Act (EStG). If you exceed this limit, you'll need to file a tax return and all your additional income is taxable.

Staking rewards


Like mining, The BMF is clear that staking rewards may also be subject to Income Tax for private investors. This includes both staking as part of a PoS mechanism and staking pools.

Staking rewards under the threshold limit (Freigrenze) of ‚ā¨256 per calendar year per Section 22 no. 3 sentence¬†2 German Income Tax Act (EStG). This refers to all additional income, however, so your staking rewards plus any other additional income from other avenues. If you exceed this limit, you'll need to file a tax return and all your additional income is taxable.

Selling crypto held for over a year


In Germany, if you've owned crypto for over a year - the sale is tax free regardless of the amount you profit by selling them. Furthermore, you don’t need to declare them in your tax return!

Gifting crypto to friends & family


Giving Bitcoin or other crypto to your family or friends as a gift is regarded as any other gift in Germany. Gifts are tax-free up to a value of ‚ā¨20,000 for friends and up to ‚ā¨500,000 for spouses. Any higher value is taxable under the ‚ÄúSchenkungssteuer‚ÄĚ, which has different tax rates depending on who you gift it to (i.e. spouse, your children, your parents, your siblings, or friends). The tax rates for gifts range from 7% up to 50%. The tax exemption limits are renewed after 10 years.

To calculate how much you've gifted or received, take the fair market value of your crypto on the day you gifted it.

Crypto gifts Germany

Earning less than ‚ā¨600 in short-term gains and income in a year


In Germany, if you sell bitcoins or any other cryptocurrency within twelve months of buying, up to ‚ā¨600 earned with crypto trading is tax-free. This is according to rule 23 EStG, where individuals with private sales that do not exceed ‚ā¨600 do not need to file a tax return as this sum is exempt. However, if you earn more than this amount, you'll need to file a tax return and the entire sum is taxable.

Buying cryptocurrency with EUR


Like in most parts of the world, there are no taxes on buying or HODLing cryptocurrencies in Germany. However, keeping accurate records of the purchase is very important so that you can calculate the cost basis of the transaction when you decide to sell or 'dispose' of your crypto.

Koinly is not just crypto tax software, but a crypto portfolio tracker too - the perfect tool to keep records of your crypto purchase and sale dates.

An infographic detailing how buying crypto is tax free, presented by Koinly, a crypto tax calculator

Staked/loaned crypto sold after one year


In Germany, crypto can be sold tax free if it was held for over 1 year. Previously, if you've used crypto in a staking/lending protocol, you'd need to hold this crypto for 10 years for it to be tax free. However, this has now changed to the same 1 year holding period as of April 2022.

Receiving an airdrop when you didn't do anything in return


In the context of an airdrop, a trader receives crypto without having purchased it or provided any other service for them. The cryptocurrencies are not transferred to the user from the legal sphere of a third party. Rather, they come into 'existence' only in the user's assets. The cryptocurrency is created directly in the wallets of the users, and the wallets must fulfill certain criteria. In this respect, airdrops resemble a lottery win or a chance find (so-called windfall profits).

In the absence of a purchase transaction, taxation in accordance with Section 23 (1) No. 2 of the German Income Tax Act (EStG) is not possible in the case of a subsequent sale. If the user does not provide services, other income as defined by Section 22 No. 3 EStG is also not applicable. Therefore the sale of airdrops is tax-free, provided the recipient did nothing in return (like sharing a social media post) in exchange for the airdrop.

Transferring crypto between wallets


Moving crypto between different exchanges, wallets or accounts is not a taxable event and doesn't trigger income tax. Having said that, it's important to keep track of these movements. Try an automated crypto tax software like Koinly to keep track of your cost basis.

While transferring crypto may be tax free, transfer fees may not be. You can learn more about transfer fees and how to deal with them in our guide.

An infographic highlighting information on how transferring crypto between your wallets is tax free, presented by Koinly, a crypto tax software

Hard forks


The BMF has clarified that for private investors, you do not need to pay Income Tax upon receipt of crypto as a result of a hard fork. However, if you sell this crypto within one year of receipt, you'll need to file a tax return and report any gain over ‚ā¨600.

Tax on hard forks

Receiving and redeeming utility tokens

The BMF's updated guidance makes it clear that the type of token is important when considering the tax implications. In the instance of utility tokens, receiving and redeeming utility tokens would not be subject to Income Tax. For example, if you received Brave's BAT tokens and used them to tip a content creator, this may not be subject to Income Tax. However, as many utility tokens hold real-world value - this would not always be the case.

Read next: Want to learn about German DeFi tax? Our guide covers everything you need to know!

Now you know how crypto is taxed in Germany, let's take a look at how to calculate and file your crypto taxes - as well as how to pay less tax!

How to calculate your crypto taxes

Once you've identified all your various taxable transactions, you need to calculate your total profits and income for the financial year and file these figures with the BZSt. There are 4 ways to tackle this:

  1. Use a crypto tax calculator like Koinly to create a report of crypto activity. Send the report to your accountant to complete your tax return. Super accurate, super easy.

  2. Use a crypto tax calculator like Koinly to create a report of crypto activity. Add the necessary data to your tax return and file it yourself. Accurate, and easy, if you know what you're doing.

  3. Get your accountant to work out your crypto activity by supplying transaction histories, statements, etc. Let them work it out and file it for you. Time-consuming, lots of admin.

  4. Work out your activity yourself, and file yourself. Best of luck to you.

German cost basis method

The BMF guidance states that FIFO is the preferred method for calculating your crypto taxes if units cannot be specifically identified. This means you sell the coins you bought first and use this to calculate your subsequent proceeds and profits.

German approved cost basis methodsHowever, in May 2022, updated BMF guidance suggested that when determining the ‚Äúsequence of use‚ÄĚ of sold units, a ‚Äėwallet-by-wallet‚Äô analysis is required. As such, we've updated the default German settings in Koinly to apply wallet-based cost tracking automatically, though this may be changed if applicable. If you have an existing account, you can change this under settings by switching the toggle next to 'wallet-based cost-tracking' on and then selecting save.

German Tax Deadline

The German tax year runs from January 1 to December 31. Technically, the tax deadline is on the 31st of July each year. However, if this falls on a weekend it will fall on the next working day. However, due to the Covid Pandemic, these deadlines have been extended. For your 2023 tax return, you have until September 30, 2024. If these dates fall on a weekend, you have until the next working day to file.

German crypto tax deadline

How do you report crypto tax in Germany?

The BZSt wants to know about your crypto activity in terms of income and profits made from crypto trades, swaps, and sales. You'll need to declare this in your annual tax return (Einkommensteuererklärung), in the same way, you need to report your regular income, gains, and losses.

If you’ve sold, traded, spent, or earned cryptocurrency in the last financial year, you will need to declare your crypto totals on your Income Tax Return. You will need to declare this as 'other income' on a separate form from your main income declaration form.

Once you or your accountant has calculated your German crypto tax (we have an app for that!), the easiest way to file your taxes is via Elster, the BZSt's online tax platform (Elektronische Steuererklärung). To report crypto, you can file both the Annex SO (Other Income) and main form ESt 1 A online with Elster. Your Koinly Complete Tax Report contains all the information you need to report short-term gains and income from crypto, including your acquisition price, costs, disposal proceeds, and the fair market value of any additional income in EUR. You can take these figures and use them to fill out your tax return forms.

You also have the option of declaring your crypto activity on paper and posting your tax forms to your local tax office (Finanzamt).

A banner inviting crypto investors to access the german crypto tax advisors directory, presented by Koinly, a crypto tax calculator

German Crypto Tax Filing Forms

To file your German crypto tax declaration, you may need 2 forms, one for general income, Hauptvordruck ESt 1 A, and one for your crypto income, Anlage SO.

  • Hauptvordruck ESt 1 A (General Tax Form): View Form

  • Anlage SO (for other income): View Form

Keep records of crypto investments

Most tax offices around the world require residents to keep detailed records of cryptocurrency transactions for 5 years. Germany is no different. It's advisable to keep the following records:

  • the date of your crypto transactions

  • the value of the cryptocurrency in Euro at the time of the transaction (which can be taken from a reputable online exchange).

  • what the transaction was for and who the other party was (even if it‚Äôs just their cryptocurrency address).

Koinly can help with record keeping. By syncing your wallets and exchanges to your Koinly account, you will have one central dashboard from where to record and view all of your crypto activity. Portfolio tracking is available on a free Koinly plan.

Crypto tax BZST records

How to reduce your crypto tax in Germany

There are a few ways you can reduce your tax bill in Germany. Read our how to avoid crypto taxes guide, but here are some quick tips:

  1. HODL to benefit from tax free disposals after 1 year.

  2. Utilise exemption limits under the German Income Tax Act (‚ā¨600 on short-term investments and ‚ā¨256 in additional income - but remember, if you earn over this amount in either respect, the entire sum is taxable).

  3. Track, harvest, and offset losses against gains to reduce your overall tax bill.

  4. Be strategic with the assets you use in DeFi investments.

  5. Gift crypto to your spouse if they're in a lower tax bracket.

  6. Deduct expenses like gas fees, tax software preparation costs, and mining expenses like electricity costs.

Learn more: How to reduce crypto tax in Germany guide.

What happens if I don't file my cryptocurrency taxes?

The BZSt is focused on ensuring all taxpayers meet their tax obligations. If you’re not sure whether you’ve correctly reported your crypto taxes over previous years, it’s best to be proactive and amend your previous tax reports.

  • Tax evasion in Germany is a criminal offense

  • punishable with a penalty

  • or even a prison sentence of up to five years depending on the intent and severity of the offense.

Risks and penalties Germany

Binance steurn, eToro steurn & more with Koinly

Whether you prefer to use heavy hitter exchanges like Binance and eToro, or you're all about self-custody and use wallets like MetaMask and Ledger - Koinly can help. Just connect your exchange, wallet, or blockchain and Koinly will get calculating. Here's how it works in 7 steps:

  1. Sign up for a free Koinly account.

  2. Select your base country (Germany), currency (EUR), and cost basis method (FIFO).

  3. Connect Koinly to your wallets and exchanges. Koinly integrates with Binance, Coinbase, eToro, and 700 more. (See all)

  4. Let Koinly crunch the numbers. Make a coffee.

  5. Ta-da! Your data is collected and your full crypto tax report is generated!

  6. To¬†download¬†your crypto tax report,¬†upgrade to a paid plan¬†from ‚ā¨39 per year.

  7. Send your report to your accountant, or complete your ELSTER submission yourself using the figures from your Koinly report.

CTA banner

Want to learn more about Binance steurn, eToro steurn & more? Check out our guide to the best German exchanges for crypto taxes.

Your frequently asked questions

Is cryptocurrency legal in Germany?
Is crypto mining legal in Germany?
Is Binance legal in Germany?
What about crypto day trading steuern?
Are crypto futures legal in Germany?
What about stablecoin steuern?

The information on this website is for general information only. It should not be taken as constituting professional advice from Koinly. Koinly is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances. Koinly is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.