Selling Bitcoin, Ethereum or any other cryptocurrency in Germany triggers questions from the Finanzamt — but the rules are friendlier than most expect. After more than 12 months of holding, crypto gains are fully tax-free. Below that threshold, a €1,000-per-year exemption still leaves room for small gains. Our German crypto tax calculator does the math in seconds, including FIFO across multiple buys.
How is crypto taxed in Germany?
For tax purposes, cryptocurrencies are classified as "other economic goods" in Germany. They fall under § 23 EStG (private disposal transactions) — not under the flat capital gains tax that applies to stocks and ETFs. Two consequences matter:
- Gains are taxed at your personal income tax rate (0–45 %), not at a flat 25 %.
- After more than 1 year of holding, the gain is fully tax-free, no matter the size.
If you don't know your marginal rate, use our German income tax calculator. For shares, ETFs and dividends use the capital gains tax calculator.
The 1-year rule: when is crypto tax-free?
The 12-month holding rule is the centerpiece of German crypto taxation. It starts the day after acquisition and is met when the coins have been held for more than 365 days.
Rule of thumb: bought 1 Feb 2024 → tax-free from 2 Feb 2025.
A sale on 1 Feb 2025 (exactly 365 days) is fully taxable.
What counts is the trade date, not the wallet credit timestamp. With multiple purchases each lot is evaluated separately — see the FIFO section below.
The €1,000 threshold — and why it isn't an allowance
If your total private-disposal gains (crypto + others) for a calendar year stay below €1,000, they are tax-free (§ 23 (3) sentence 5 EStG). The threshold has applied since 2024 (previously €600).
Important: the €1,000 is a Freigrenze (threshold), not a Freibetrag (allowance). The difference matters:
| Gain | Taxable | Tax (at 30 % rate) |
|---|---|---|
| €999.99 | €0 | €0 |
| €1,000.00 | €0 | €0 |
| €1,000.01 | €1,000.01 | €300.00 |
| €5,000.00 | €5,000.00 | €1,500.00 |
At €1,000.01, tax applies to the entire gain — not just to the cent above the threshold. Realising a small loss before year-end is a legitimate way to slip back below the line ("tax-loss harvesting").
FIFO: oldest purchase goes first
If you have bought the same coin multiple times, you need a rule to decide which units you actually sold. German tax law mandates FIFO (First-In-First-Out): the oldest purchase is treated as sold first.
This is often beneficial, because old lots tend to have lower acquisition cost and longer holding periods (so they're more likely to be tax-free).
Worked example: FIFO across two purchases
You bought 2 BTC in 2024 and 2025 and sell 1.5 BTC in August 2025:
- Lot 1: 1 BTC on 15 Jan 2024 for €35,000
- Lot 2: 1 BTC on 10 Jun 2025 for €60,000
- Sale: 1.5 BTC on 1 Aug 2025 at €80,000 each
FIFO matching:
- Lot 1 (1 BTC): holding period ≈ 18 months → tax-free. Gain 80,000 − 35,000 = €45,000 — excluded from tax.
- Lot 2 (0.5 BTC): holding period ≈ 2 months → taxable. Proceeds 0.5 × 80,000 = €40,000, cost basis 0.5 × 60,000 = €30,000, gain €10,000.
At a 35 % marginal rate the tax is €3,500. The Lot 1 gain is fully tax-free.
Loss offsetting — only within §23
Crypto losses can offset gains from other private-disposal transactions (other crypto, real estate, other movable assets). They cannot offset salary, dividends or capital gains from securities.
Unused losses can be:
- Carried back one year (on request)
- Carried forward indefinitely (automatic)
What about staking, lending and mining?
These activities are taxed under §22 No. 3 EStG (other income), not under §23 EStG. Key differences:
- Threshold: €256 per year (instead of €1,000)
- No 1-year exemption — rewards are taxable as soon as received
- A subsequent sale of staking rewards re-enters the §23 regime
The crypto tax calculator covers disposals only. Staking income needs a separate calculation.
Selling costs and gas fees
The following expenses reduce the taxable gain:
- Exchange fees on purchase (added to acquisition cost)
- Exchange fees on sale (deducted from proceeds)
- On-chain gas fees, if directly attributable
- Spread on OTC trades (typically embedded in price)
The calculator accepts purchase and sale fees separately. The FIFO logic spreads the purchase fee proportionally over the sold portion of each lot.
Using the German crypto tax calculator
Our free crypto tax calculator handles the math in seconds:
- Enter each purchase: date, amount, price per coin, fee
- Add as many lots as you need
- Enter the sale: date, amount, price, fee
- Drag the personal income tax rate (0–45 %)
- Tax status, taxable gain, tax amount and net proceeds appear instantly
Frequently asked questions
Do I need to declare crypto gains?
Yes, whenever they are taxable (held under 1 year and over the €1,000 threshold). Declaration is on Anlage SO of the German income tax return.
What about crypto-to-crypto swaps (BTC → ETH)?
A coin-to-coin swap is treated as a disposal of the first coin and an acquisition of the second. The 1-year clock restarts for the new coin.
How much is the German crypto tax?
There is no flat rate. Gains are taxed at your personal income tax rate (basic schedule 0–45 %, top rate from €277,826). See the income tax calculator.
Can the German tax authority see my wallet?
For centralised exchanges with KYC (Bitvavo, Coinbase, Kraken etc.) the data is potentially accessible. The Finanzamt also uses chain-analytics tools. Full disclosure is essential.
What happens at a loss?
Losses reduce the taxable gain from other private-disposal transactions. Net annual losses can be carried back or forward. The calculator shows a negative gain as "Loss" and sets the tax to €0.