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.