Germany is one of the countries with clear cut, laid out rules on taxation of gains from cryptocurrency. Germany treats crypto as private assets and crypto tax in Germany is levied as Short Term Capital Gains.
Germany has also seen a two fold increase in crypto ownership rates in 2022 by going from 2.6% in 2021 to 5.8% in 2022. Approximately 4.6 million people own cryptocurrency in Germany and 86% of citizens are aware and receptive to crypto.
Do you have to pay crypto tax in Germany?
Yes, you have to pay taxes on crypto in Germany. They are taxed as Short Term Capital Gains if held and then sold within a year.
When do you have to pay tax on crypto in Germany?
When you sell crypto amonting to more than 600 euros for the whole of financial year, you need to pay taxes. Else than this, swapping and spending in crypto is also taxed.
What crypto transactions are taxable in Germany?
- Selling crypto and earning income of more than 600 euros from it.
- Swapping crypto.
- Paying for goods and services using crypto.
What are the Crypto Tax Rates in Germany?
Crypto is treated as capital gain and as income in different circumstances in Germany. Crypto tax varies on progressive rate of up to 45%. Crypto is treated as a private asset generally, on which you pay taxes if you hold it for less than a year. Although, if you make money through mining crypto, it is treated as income and you will need to pay income tax too.
| Single taxpayers | Married taxpayers | Tax rate |
| €0 to €10,632 | €0 to €21,264 | 0% |
| €10,632 to €61,971 | €21,264 to €123,942 | 14 to 42% |
| €61,971 to €277,825 | €123,942 to €555,650 | 42% |
| €277,825+ | €555,650+ | 45% |
Germany Income Tax Brackets (2023)
| Single taxpayers | Married taxpayers | Tax rate |
| €0 to €10,632 | €0 to €21,264 | 0% |
| €10,632 to €61,971 | €21,264 to €123,942 | 14 to 42% |
| €61,971 to €277,825 | €123,942 to €555,650 | 42% |
| €277,825+ | €555,650+ | 45% |
Germany Short Term Capital Gain Tax Rates (2023)
| Single taxpayers | Married taxpayers | Tax rate |
| €0 to €10,632 | €0 to €21,264 | 0% |
| €10,632 to €61,971 | €21,264 to €123,942 | 14 to 42% |
| €61,971 to €277,825 | €123,942 to €555,650 | 42% |
| €277,825+ | €555,650+ | 45% |
Germany Long Term Capital Gain Tax Rates (2023)
If crypto is held for a long term, that is for more than 1 year, the tax is exempted and no tax has to be paid.
How is Tax Calculated on Cryptocurrency in Germany?
There are several distinctions on how tax is calculated on cryptocurrency in Germany. If you bought cryptocurrency in February 2023 and then sold it before February 2024, you will have to pay taxes on the gain. This tax is exempted if the total profit from sale of crypto amounts to less than 600 euros.
If you bought cryptocurrency in February 2023 and sold it after Februrary, that is after a year, no taxes are levied on your gains, making it more beneficial to hold crypto for longer periods of time.
Income derived from mining or staking of cryptocurrency is considered additional income which is also taxed until and unless it is less than 256 euros.
Is there any Crypto Tax Free in Germany?
If you sell crypto and the gains received are less than 600 euros, you do not have to pay taxes on such sales.
In case of income made from mining and staking, taxes are exempted if money made is less than 265 euros.
Crypto Tax in Germany – FAQs
Do you have to pay tax when you buy crypto in Germany?
No, buying crypto is not subject to taxation in Germany.
Do you have to pay tax when you sell crypto in Germany?
If gains from such sales are more than 600 euros, you have to pay taxes of up to 45%.
Do you have to pay tax when transferring crypto in Germany?
No, you don’t have to pay taxes when transferring crypto in Germany.
Do you have to pay tax when spending crypto in Germany?
Yes, spending via crypto is liable to taxation in Germany.
Is swapping crypto taxable?
Yes, swapping your crypto for another cryptocurrency is taxable in Germany.
How much tax on crypto gains in Germany?
Single taxpayers Married taxpayers Tax rate €0 to €10,632 €0 to €21,264 0% €10,632 to €61,971 €21,264 to €123,942 14 to 42% €61,971 to €277,825 €123,942 to €555,650 42% €277,825+ €555,650+ 45%
How do I avoid capital gains tax on crypto in Germany?
Best way to avoid tax on crypto in Germany is to hold the crypto for more than a year.
Market Research Intern, Octaloop
Maitreyee takes a keen interest in financial technologies and their potential to transform lives at the grassroots. Put together with her penchant for Economic Research, she brings tonnes of academic and actionable insight into our products. Maitreyee is contributing at Binamite as a Market Research Intern, and when she's not doing that, you can find her exploring the city or buried in a book.