Cryptocurrency in Germany: regulation, taxes and licensing
In short. Crypto is legal in Germany, and the rule people come here for is simple: hold an asset for more than a year and the sale is not taxed at all, whatever the gain. Sell sooner and it is income, taxed at your personal rate of up to 45%. BaFin supervises, and since 2026 the EU-wide MiCA regime sits above it.
- HELD OVER A YEAR
- 0%the sale is not taxed at all
- SOLD SOONER
- up to 45%at your personal income rate
- PRIVATE SALES THRESHOLD
- €1,000per year, since 2024
- STAKING AND MINING
- Taxableas income when received
- LICENCE
- MiCA CASPissued by BaFin, valid EU-wide
- EXEMPTION AT RISK
- from 2027the government plans to end it
Who regulates crypto in Germany
Supervision sits with BaFin, the federal financial supervisory authority. Germany was among the first countries to give crypto a workable legal status: back in 2013 the finance ministry classified bitcoin as a unit of account — private money. It looked like an academic footnote at the time; in practice it spared the market years of argument about what was even being traded.
Since 2026 the EU's MiCA regime has applied on top of national rules. It changed the geography more than the substance: a crypto-asset service provider licence granted in one member state is valid in all of them. A German venue licensed by BaFin can serve customers from Portugal to Estonia without collecting permissions one by one.
The flip side of passporting is that the requirements became common too. Several venues that had been operating in Europe without local authorisation left the region rather than comply.
Tax: the holding year decides everything
German law treats crypto as "other economic goods", and disposals as private sale transactions under §23 of the income tax act. The headline consequence follows from that classification: if more than a year passed between purchase and sale, the gain is not taxed. Not at a reduced rate — at zero, with no ceiling on the amount.
Sell sooner and the profit joins your ordinary income, taxed at your personal progressive rate up to 45%, plus the solidarity surcharge and, if it applies to you, church tax.
There is an exempt threshold: €1,000 a year across all private disposals, raised from €600 in 2024. One detail catches people out. It is a threshold, not an allowance. Stay under €1,000 and you pay nothing; go a single euro over and the entire gain becomes taxable, not just the excess.
Staking, mining and lending work differently. Coins received count as income on the day they arrive, valued at that day's market price. The one-year rule then starts running for those coins and applies to any subsequent appreciation.
What may change
The one-year rule is not a law of nature, and the government is discussing its removal. In April the finance minister, Lars Klingbeil, said crypto should be taxed differently, with the budget counting on roughly €2 billion in additional revenue. The likeliest target is the holding-period exemption itself and the likeliest date is 2027.
For now the exemption stands in full. But anyone choosing Germany specifically for it should know it is under discussion.
Allowed
- Sell tax-free after a year, with no cap on the amount
- Buy and hold crypto, including through German banks
- Use any MiCA-licensed venue from any EU country
- Mine and earn staking rewards, declaring them as income
Restricted
- Operating without a CASP licence — EU-wide since 2026
- The €1,000 threshold: exceed it and the whole gain is taxed
- Staking and mining rewards do not get the holding exemption on receipt
- The one-year exemption is under review for removal from 2027
How the rules took shape
The finance ministry classifies bitcoin as a unit of account — private money. Germany becomes one of the first countries to give crypto a legal status.
Banks are permitted to hold client crypto assets under a dedicated BaFin licence.
Special funds may allocate up to 20% of a portfolio to crypto, opening a legal door for institutional money.
A finance ministry letter confirms the one-year rule applies to staked coins too, dropping an earlier proposal for a ten-year period.
The private-disposal threshold rises from €600 to €1,000.
MiCA applies in full: a licence from one member state works across the union.
Worth knowing
On 19 August 2013 the German finance ministry, answering a parliamentary question, classified bitcoin as private money and a unit of account — the world's first official recognition of a cryptocurrency at state level.
Common questions
How long must I hold crypto to pay no tax?
More than a year. After that the gain on sale is untaxed regardless of size.
What happens if my gain is €1,001?
The whole amount is taxable, not the single euro above the line. It is a threshold, not an allowance — this is the most common mistake.
Is staking taxed?
Yes. Coins received are income on the day they arrive, at that day's market price. The one-year clock then starts for those coins and covers their later appreciation.
Will the exemption really be abolished?
It is under discussion. In April the finance minister said crypto should be taxed differently, with 2027 the likely date. For now the exemption applies.
Does a German exchange need extra licences for clients elsewhere in the EU?
No. Since 2026 a CASP licence from BaFin is valid across the union.
Sources
Related reading
Other countries
Updated 18.08.2026 · this is reference material, not investment or tax advice