Taxes · DEU
Taxes in Germany
In Germany, private individuals pay no capital gains tax on cryptocurrency held for more than one year, making long-term holding highly tax-efficient. Short-term gains (assets held under one year) are taxed as ordinary income up to 45%, but an annual exemption of 1,000 EUR applies. Staking and mining rewards are taxable as miscellaneous or business income in the year of receipt.
Income tax
Mining and staking rewards are treated as miscellaneous income (sonstige Einkuenfte) under Section 22 EStG and taxed at the individual's marginal income tax rate (14-45%). A 256 EUR annual allowance applies. Lending and forging income is treated similarly.
VAT / GST
Exempt. The CJEU ruling in Hedqvist (C-264/14) confirmed that crypto-to-fiat exchange is VAT-exempt. Buying and selling Bitcoin and most cryptocurrencies does not attract German VAT for individuals.
Capital gains
Gains from selling crypto held for less than 1 year are taxed as personal income at the individual's marginal rate (up to 45% plus solidarity surcharge). Gains from crypto held for more than 1 year are fully tax-exempt. Annual exemption of 1,000 EUR (raised from 600 EUR in 2024) applies to short-term gains.
Type case, not tax advice: figures describe a single average earner and standard rates; your situation depends on residency, deductions and local rules. Verify with the tax authority before acting. — Fiatmap