Sec. 11, 22 no. 3 EStG Article · as at 10/2026

Staking and lending rewards: when are they received for German tax?

If you live in Germany and earn staking or lending rewards on privately held crypto, the rewards are "other income" taxed at your personal rate, valued at the market price when received. The hard question is when "received" is: when the reward accrues, when you claim it, or at year end. The Finance Ministry circular of 6 March 2025 gives a simplification for staking in margin no. 48a and refers to it for lending in margin no. 65. This article explains both, our practice's approach, the €256 limit and the pending court case on how lending income is classified.

In short

Staking and lending rewards on private holdings are other income under section 22 no. 3 EStG, valued at the market price when received (section 11 EStG).
Margin no. 48a allows a simplification: during the year you may use the credit to your wallet (claiming) as the date. Rewards not yet claimed must be recognised by year end at the latest.
48a speaks only of staking; margin no. 65 refers to it for lending. We apply the relief to both.
All staking and lending income of a year counts towards the €256 exemption limit. Reach it, and the whole amount is taxable.
The value at receipt is also your cost basis. The same value is not taxed twice.
Whether lending income is capital income at 25 per cent is before the Federal Fiscal Court (VIII R 22/25); we represent the claimant.

What the circular says

Margin no. 48a (staking). For simplicity, the administration does not object if, during the year, the credit to the wallet (claiming) is treated as the date of acquisition. Rewards not yet claimed must be recognised at the end of the calendar year at the latest. You cannot defer tax by leaving rewards unclaimed.

Margin no. 65 (lending). Lending income is taxable under section 22 no. 3 EStG. The crypto assets received are acquired and valued at the market price when received. For claiming, margin no. 65 refers expressly to margin no. 48a.

Our reading

The wording of 48a covers staking only. Because of the cross-reference in 65, and because staking and lending raise the same practical problem of rewards that become available later, we apply the relief to both. That is an interpretation supported by the cross-reference, not express text.

On the circular as a whole: the Finance Ministry circular of 6 March 2025.

Three options in practice

Our practice's approach: you may recognise staking and lending rewards at one of three points.

Option	Date of recognition	Basis
a)	as soon as the rewards are claimable	section 11 EStG: economic control
b)	when the rewards are claimed (credited to the wallet)	margin no. 48a, expressly accepted
c)	by 31 December of the year in which they first became claimable	margin no. 48a, year-end rule

Important

The word "claimable" does not appear in the circular. The three-option approach is our professional line based on margin nos. 48a and 65. The administration expressly accepts claiming and the year-end rule. If you choose a) or c), document the choice and the price.

For unclaimed rewards, the documented price on 31 December is the obvious choice.
If you claim later, you have already recognised the acquisition at the earlier date. Do not recognise it twice; the holding period starts with the date already used.
Apply one method consistently and record it in your report.

The €256 limit and no double taxation

All staking and lending income of a calendar year is added to your other income from services. Below €256 it is tax free. From €256 the whole amount is taxable. It is an exemption limit, not an allowance.

Example (invented)

Staking rewards €150, lending rewards €120, together €270. The limit is exceeded; all €270 are taxable, not just the €14 above it.

Having taxed the rewards at the price when received, that value is your cost. If you sell the tokens within one year, only the gain above that cost is taxed under section 23 EStG. After one year the sale is tax free. A loss on sale does not reduce the income from receiving the rewards. On the holding period.

Locked rewards

If rewards are technically locked, for example by a lock-up period at the provider, and you cannot dispose of them, there is no receipt yet under the general rules of section 11 EStG: you lack economic control. Whether the year-end rule of 48a applies anyway is not addressed by the circular. It depends on the case and the protocol's terms.

Lending: which type of income? The pending appeal

The administration treats lending income as other income (section 22 no. 3 EStG) at your personal rate. The opposing view: lending income is capital income (section 20(1) no. 7 EStG) at the 25 per cent flat rate.

The Cologne fiscal court dismissed the claim on 10 September 2025 (3 K 194/23) and did not classify lending as capital income.
The appeal is pending at the Federal Fiscal Court (VIII R 22/25); some sources cite VIII R 23/25 by mistake. We represent the claimant; see our case register.
Until the ruling, the classification is not settled.

Practical tip

If you have declared lending income, consider filing an objection against the assessment and asking for the proceedings to be suspended until the court decides. Mind the one-month deadline. Template: model objection.

Have your case reviewed Service: staking, lending, DeFi

Questions and answers

Do I have to tax rewards I have not claimed yet?

Yes, at the latest on 31 December of the year in which they first became claimable. Until then, under the relief in margin no. 48a, you may use the claim date or the year end.

Does the relief in margin no. 48a also apply to lending?

Margin no. 48a mentions only staking. But margin no. 65 refers expressly to 48a for claiming. We therefore apply the relief to lending as well. That is an interpretation supported by the cross-reference, not express wording.

Do staking and lending count together for the €256 limit?

Yes. All income from services within section 22 no. 3 EStG in a calendar year is added together. Once the limit is reached, the whole amount is taxable.

Do I pay tax again when I sell the rewards?

Only on the gain above the value at receipt, and only if you sell within one year. The value at receipt is your cost; the same value is not taxed twice.

Does staking or lending extend my holding period to ten years?

For currency and payment tokens the administration does not apply the extension (margin no. 63). For other tokens it has to be checked case by case.

Is lending income capital income at the 25 per cent flat rate?

Not in the administration's view; it is other income under section 22 no. 3 EStG at your personal rate. The Cologne fiscal court confirmed this on 10 September 2025 (3 K 194/23); the appeal is pending at the Federal Fiscal Court (VIII R 22/25). Until then the question is open.

Author: Matthias Steger, German certified tax adviser, expert witness before the Bundestag finance committee on DAC8.
Sources: Finance Ministry circular of 6 March 2025, margin nos. 13, 48a, 63, 65; sections 11(1), 22 no. 3, 23 EStG; Cologne fiscal court, 10 September 2025, 3 K 194/23; BFH appeal VIII R 22/25.
As at: 25 October 2026. Summary for non-native speakers living in Germany; the German article is the full version. The three-option approach is our practice's line. Not individual advice.

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