Germany has one of the most nuanced crypto tax regimes in Europe. Short-term gains are taxable, but after a 12-month holding period, gains can be completely tax-free. This guide explains all the relevant rules for 2025.
Basics of crypto taxation in Germany
Cryptocurrencies are classified as private assets (sonstige Wirtschaftsgüter) under § 23 EStG. Gains from disposal are taxable as private sales transactions if held for less than 12 months.
After a 12-month holding period, gains from crypto sales are completely tax-free — regardless of the amount. This is one of the key tax advantages of the German system.
The exemption threshold for private sales is €1,000 per year since 2024. If your total gains remain below this threshold, they are fully tax-free.
FIFO method: how it works in practice
Germany uses the FIFO method by default (First In, First Out): the first coins bought are treated as the first sold. This directly affects holding period calculation and cost basis.
SafeTax automatically applies the FIFO method to all your transactions and calculates the correct holding period and resulting gain or loss for each sale.
Staking and mining: tax treatment
Staking rewards and mining income are classified as other income (§ 22 EStG) in Germany and are taxable at market value on the date of receipt.
For coins received through staking or mining, the 12-month holding period starts from the date of receipt. After 12 months, their sale is also tax-free.
Anlage SO: declaring crypto gains
Gains from crypto sales are declared in Anlage SO (Other Income) of the German income tax return.
SafeTax automatically generates a complete transaction overview in Anlage SO format, ready to transfer to your tax return or pass to your tax advisor.
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FIFO method, holding period check, Anlage SO — all automatic with SafeTax.
Try SafeTax for freeFrequently asked questions about crypto tax in Germany
How long must I hold crypto to sell tax-free in Germany?
Gains from crypto sales held for at least 12 months are completely tax-free in Germany, regardless of the gain amount.
What is the exemption threshold for crypto gains in Germany?
Since 2024, the exemption threshold for private sales is €1,000 per year. Total gains below this are fully tax-free.
Are staking rewards taxable in Germany?
Yes. Staking rewards are taxable as other income (§ 22 EStG) at market value on the date of receipt.
Can SafeTax generate the German crypto tax report?
Yes. SafeTax applies FIFO, checks the 12-month holding period for each transaction, and generates a complete Anlage SO report.
Do I need to declare crypto in Germany if I haven't sold?
No. Simply holding is not taxable; a taxable event only occurs on a disposal (sale, swap or spending) within the 12-month holding period. After more than 12 months the gain is tax-free.
Is a crypto-to-crypto swap taxable in Germany?
Yes. Every swap (e.g. BTC → ETH) counts as a disposal and is taxable within the one-year holding period; after more than 12 months of holding the gain is tax-free.
How is the holding period calculated across multiple purchases?
Using FIFO (First In, First Out): the coins bought first are treated as sold first, and the 12-month holding period is checked for them.
How are crypto losses offset in Germany?
Losses from private sale transactions (§23 EStG) can only be offset against gains of the same type — in the same year, carried back to the previous year, or carried forward to future years. Losses from sales that are tax-free after more than 12 months are not deductible.
How are NFTs taxed in Germany?
NFTs are usually treated like other crypto assets (private sale transaction under §23 EStG, with the 12-month holding period). However, the classification can vary depending on what the NFT represents and is not fully settled — check your case if in doubt.
How much does SafeTax cost?
The crypto tax simulator is free to use. Generating a declaration-ready report for a given tax year is paid, with pricing based on your number of transactions; an optional subscription unlocks the Advanced simulator (lot optimisation and transaction-impact preview).
Is SafeTax tax advice?
No. SafeTax is an educational and declaration-support tool, not tax advice. Figures are computed from publicly available tax rules for each country; for your personal situation, confirm with a qualified tax professional.
What makes SafeTax different from other crypto tax tools?
SafeTax is privacy-first: every figure is computed in your browser and nothing is stored (zero data retention). It covers 19 countries with a calculation method specific to each, is available in 9 languages, and offers a free simulator to estimate your tax before you buy a report.
SafeTax provides tax declaration assistance tools but does not constitute personalized tax advice. Always consult a qualified professional for your specific situation. Tax information may evolve and varies by jurisdiction.