Is Bitcoin tax-free in Germany after 1 year?

Yes. Under §23 EStG, crypto held for more than 1 year is entirely tax-free (private sale exemption). This is one of the most favorable crypto tax regimes in the EU.

What is the Freigrenze for crypto in 2025?

€1,000 per year (raised from €600 in 2024). If your total private sale gains exceed €1,000, the entire amount is taxable — it is a Freigrenze (exemption limit), not a Freibetrag (deductible allowance).

Does staking extend the holding period in Germany?

No. The 2022 BMF circular clarified that simple staking does not extend the 1-year holding period, reversing the earlier controversial interpretation. Delegated staking is treated the same as direct staking.

How are crypto-to-crypto swaps taxed in Germany?

Each leg of the swap is a separate transaction. The swap is a disposal at the market value in EUR of the crypto given up. If either side was held less than 1 year, a taxable gain or loss is realized.

Germany Crypto Tax Calculator 2025

Free Einkommensteuer calculator for crypto held as a private asset. Uses §23 EStG rules, the €1,000 2025 Freigrenze, and Germany's progressive marginal income tax rates for the 2025 Einkommensteuererklärung due 31 July 2026.

Why Germany has one of the best crypto tax regimes

Germany treats cryptocurrency held by private individuals as a privates Veräußerungsgeschäft under § 23 Abs. 1 Nr. 2 EStG. The key consequence: if you hold for more than 12 months, any gain is completely tax-free. No CGT, no income tax, nothing to report.

This is a fundamentally different model from the US (where there's no holding-period exemption), the UK (where every disposal is potentially taxable), or France (flat 30% PFU regardless of hold time).

Three rules to know

1. The 1-year holding period (Spekulationsfrist)

Any single crypto unit held longer than 1 year when disposed is tax-exempt. The clock starts the day after acquisition. Bitcoin bought 15 Jan 2024 becomes exempt on 16 Jan 2025.

2. The €1,000 Freigrenze

For 2025, the threshold is €1,000 per year (it was €600 through 2023, raised to €1,000 in the Wachstumschancengesetz). Crucially, this is a Freigrenze not a Freibetrag: if your total private-sale gains exceed €1,000, you pay tax on the entire amount, not just on the excess over €1,000.

3. Progressive marginal rate

Gains that are taxable (sold within 1 year AND total > €1,000) are taxed at your personal marginal income tax rate, not at a flat rate. 2025 rates:

Up to €12,084: 0% (Grundfreibetrag)
€12,085 – €17,005: 14% linearly rising to ~24%
€17,006 – €66,760: ~24% rising to 42%
€66,761 – €277,825: 42%
Above €277,826: 45% (Reichensteuer)

Solidaritätszuschlag (5.5% surcharge on the tax) has largely been abolished for individual taxpayers since 2021 — it only applies above €96,820 income (€193,641 married).

Lot matching — FIFO only

The BMF's 10 May 2022 circular clarifies that FIFO is the only permitted lot-matching method for crypto in Germany, applied per wallet. You cannot use LIFO or specific identification.

Staking: the 10-year myth

The 2021 Einkommensteuergesetz amendment introduced a rule extending the holding period to 10 years for crypto used to earn income (staking, lending). This created panic. The 10 May 2022 BMF circular reversed this interpretation: simple staking does not extend the 1-year holding period.

Staking rewards themselves are taxable as other income (sonstige Einkünfte) in the year received, at the EUR market value on the day you gained control.

Anlage SO — how to file

Crypto gains are reported on Anlage SO (sonstige Einkünfte) of your Einkommensteuererklärung. Each disposal is listed with acquisition date, disposal date, acquisition cost, disposal proceeds and gain/loss.

For complex portfolios, Koinly, CoinTracking or Blockpit generate Anlage SO-ready reports automatically, handle FIFO per wallet and apply the §23 exemption to lots held over 12 months.

Common mistakes by German crypto investors

Assuming all crypto is tax-free after 1 year. If any of your realized gains in a given year came from under-1-year holdings and exceed €1,000 in total, you pay tax on those.
Forgetting about stablecoin trades. Converting BTC → USDC is a disposal; the holding period resets on the new USDC position.
Confusing Freigrenze with Freibetrag. €1,001 of total gains = €1,001 taxable, not €1.
Not reporting staking rewards. They're miscellaneous income, always taxable at receipt.
Wrong wallet-level FIFO. Each wallet tracks its own FIFO queue — transferring between wallets doesn't unify pools.

2025/26 timeline

31 Juli 2026: deadline for 2025 Einkommensteuererklärung (without tax advisor)
28 Feb 2027: deadline if filing through Steuerberater

Germany Crypto Tax Calculator — 2025