1. Tax Rate: How much will I pay?
In Germany, there is no flat tax rate for crypto capital gains. Your gains are taxed according to your progressive income tax rate.
Applicable Rate: Between 14% and 45%.
Application: This rate is calculated based on your total income for the year (salary + crypto gains).
2. Holding Period: When is it tax-exempt?
The most important factor in Germany is the duration for which you have held your assets.
More than one year: If you hold your cryptos for more than 12 months, any capital gain realized upon sale or exchange is 100% tax-exempt, regardless of the amount.
Less than one year: Gains from sales made less than 12 months after purchase are taxable (unless they fall below the exemption threshold).
Staking & Lending: Since May 2022, it is official: even if you "stake" your tokens, the holding period for the sale to be tax-exempt remains 1 year (the 10-year rule does not apply).
3. Exemption Thresholds (Freigrenze)
Germany applies an exemption threshold (Freigrenze).
Warning: This is not a tax-free allowance (Freibetrag). If you exceed the threshold by even €1, you pay tax on the entire amount, not just the surplus.
The threshold differs depending on the type of income:
A. Gains from Crypto Sales and Exchanges (Trading)
This concerns the difference between the purchase price and the sale price within the year.
Tax Year | Exemption Threshold (Annual) |
From 2024 onwards (2025, 2026...) | €1,000 |
Until the end of 2023 (2022, 2021...) | €600 |
B. Other Income / Passive Income (Staking, Lending, Airdrops)
This concerns the value of the tokens at the moment they arrive in your wallet.
Period | Exemption Threshold (Annual) |
Historical and Current | €256 |
Best regards,
Team Waltio.