15/01/2025
How Krypto taxed in Germany
Unlike in many other countries, cryptocurrency is viewed as a private asset in Germany, as opposed to property - which has some distinct tax implications. It means crypto attracts an individual Income Tax, rather than Capital Gains Tax - but only in specific circumstances
When you dispose of a private asset, like crypto, the tax rules change depending on how long you've held the asset for. If you've held your crypto for less than a year, you'll pay Income Tax on any profits from a disposal. Disposals include selling your crypto for EUR (or any other fiat currency), swapping your crypto for another cryptocurrency, or spending your crypto on goods and services. However, if you have an annual net gain of less than €1000 (as of 2024) you do not need to file a tax return.
Meanwhile, if you've held your crypto for more than a year, you can dispose of your private asset completely tax free, so it pays to hodl!
As well as the above, there are some crypto transactions considered income - like mining or staking rewards - that you'll need to pay Income Tax on too. However, you'll only need to file a tax return if you earn above €256 threshold each year for additional income.
German Income Tax Rate
In Germany, your individual Income Tax rate is used to tax short-term cryptocurrency gains. As well as Income Tax, everyone has to pay Solidarity Tax (Solidaritätszuschlag or 'Soli'). This surcharge is imposed as a percentage of all individual income taxes - but has been substantially reduced in recent years.
The German Income Tax rates for the 2024 financial year you'll be reporting on in 2025 are:
Source
Single taxpayers Married taxpayers Tax Rate
€0 to €11,604 €0 to €23,208 0%
€11,604 to €66,760 €23,208 to €133,520 14 to 42%
€66,760 to €277,825 €133,520 to €555,650 42%
€277,825+ €555,650+ 45%
