German crypto tax: frequently asked questions

It depends on how long you held. If more than twelve months lie between purchase and sale, the gain is tax free for private investors (section 23 of the Income Tax Act). Within twelve months it is taxed at your personal income tax rate; there is no flat rate. Total gains up to €1,000 per calendar year stay tax free, and once the limit is reached the whole amount is taxable. See holding period.

Through collective information requests to exchanges, tip-offs from audits of third parties, and from 2026 through the automatic exchange of information under DAC8. Providers report for the first time by 31 July 2027, covering the year 2026 and existing account relationships. Details: DAC8. This applies to anyone resident in Germany, whatever the nationality or the exchange used.

Private disposals and income from staking, lending, mining and airdrops go in Annex SO, in different sections. Annex SO shows totals; the detailed list is attached or provided on request. See Annex SO explained.

To be effective under section 371 of the Fiscal Code it must be complete: all unbarred tax offences of the tax type concerned, at least the last ten calendar years. The transaction history is rebuilt first, the tax is calculated, and the disclosure is filed with a full derivation. Tax and interest must be paid within the period set. A partial disclosure does not protect you. See voluntary disclosure.

A correction under section 153 of the Fiscal Code is enough where there was neither intent nor gross negligence when the return was filed and you only recognised the error later; it must then be made without undue delay. If you did not declare with intent, including conditional intent, a correction alone does not give immunity: that needs a voluntary disclosure under section 371. For gross negligence, section 378(3) provides a comparable correction with a payment deadline. Which case applies depends on what you knew at the time. Classify it before filing anything, because the wrong form can cost you the protection.

Tax plus interest. If the evaded amount exceeds €25,000 per tax type and year, a surcharge under section 398a applies: 10 per cent up to €100,000, 15 per cent up to €1 million, 20 per cent above. Our fee is on top; a voluntary disclosure adds €2,950 to the fee for the returns (fees).

Note the deadline and do nothing else: do not call, reply or send documents. First establish what kind of letter it is; an information request, an audit order and the opening of criminal proceedings have very different consequences, and a well-meant reply can rule out a voluntary disclosure. See tax investigation.

Inheritance tax is based on the market value on the date of death; a later price fall does not reduce it. The deceased person's holding period carries on for the heir (section 23(1) sentence 3 of the Income Tax Act). The acquisition must be reported to the tax office within three months of becoming aware of it. See inheritance and gifts.

It depends on the relationship. Allowances per donor every ten years: spouse €500,000, child €400,000, grandchild €200,000 (with living parents), siblings, nieces and nephews €20,000, all others €20,000. Rates are 7 to 30 per cent in class I, 15 to 43 per cent in class II and 30 to 50 per cent in class III. The value is taken on the day the gift is carried out.

Crypto assets are measured individually; every disposal is a separate transaction with its own cost. Merely marking to market is not enough. The cost-flow method you choose decides each result and must be applied consistently and documented. See crypto accounting.

Matthias Steger has worked in crypto since 2016. Staking rewards are other income under section 22 no. 3 of the Income Tax Act when received, with a €256 exemption limit; staking does not extend the holding period. See staking, lending and DeFi.

The treatment depends on what is actually done: buying and selling NFTs as a collector, or creating and selling them as a creator. A sale can be a service supplied electronically, in which case VAT turns on place of supply and the status of the customer. We assess NFTs case by case, including through expert opinions; for projects see blockchain projects.