Germany's Cryptocurrency Tax Laws: Holding Period and Exemption Thresholds

In Germany, gains from cryptocurrencies are tax-free when held for more than twelve months. However, if sold within this period, it's taxed at a rate of up to 45% plus the solidarity surcharge. A draft bill aims to change this from 2027, but no decision has been made yet.

Crypto assets in Germany are treated as 'other economic goods' and their sale is considered a private disposal under Section 23 of the German Income Tax Act. The holding period runs from the date of acquisition and attaches to individual positions, not portfolios or calendar years. If a cryptocurrency is sold after twelve months, the gain is tax-free.

The tax administration has clarified that staked coins can also be disposed of tax-free after twelve months. Income from staking and lending is taxed at personal rates, with a separate exemption threshold of 256 euros per year. Losses from crypto sales can only be offset against gains from other private disposals within the same year.