🇪🇺 Europe
Crypto & taxes in Germany
- Long-term exemption
- Tax-free after 12 months
- Annual exemption limit
- €1,000
- Sale within 1 year
- Income-tax rate up to 45%
Crypto regulation
Germany implemented MiCAR through the Finanzmarktdigitalisierungsgesetz (FinmadiG), which contains the Kryptomärkteaufsichtsgesetz (KMAG), published in late December 2024. BaFin is the competent authority for CASP authorisation and supervision; the transition period ends 1 July 2026.
Taxation
For individuals, crypto are private assets (§23 EStG): gains are tax-free if held longer than 12 months. If sold within a year and the annual €1,000 Freigrenze is reached, the entire gain is taxed at the progressive income-tax rate (up to 45% plus solidarity surcharge).
Useful information
The €1,000 limit is a Freigrenze (not an allowance): once reached the whole gain is taxable, but it applies per person. The reference guidance is the BMF letter of 6 March 2025, introducing transaction record-keeping duties; from 2026 the DAC8 data exchange also applies.