Anyone who buys, swaps, sells or earns Bitcoin, Ether or other crypto-assets through staking must classify and document these transactions correctly for German tax purposes. Private investors are currently still subject to the rules for private disposal transactions. At the same time, the Federal Ministry of Finance is planning a fundamental change of system for certain crypto-assets from 2027.
Status: 20 September 2026. The reform plans described below are not yet applicable law. They are based on a ministerial draft at an early coordination stage. Dates, transitional provisions and other details may change during the legislative process.
Key points at a glance
- Current law: Private disposals within one year may be taxable under sections 22 no. 2 and 23 of the German Income Tax Act (EStG). After the one-year period, a private disposal gain is generally not taxable.
- €1,000 threshold: The aggregate gain from all private disposal transactions in a calendar year is tax-free if it is less than €1,000. Once the threshold is reached or exceeded, the full gain is generally taxable.
- Every swap counts: Swapping Bitcoin for Ether or using coins to pay for goods is also a disposal.
- Staking and lending: Under the current administrative guidance, recurring income is generally other income under section 22 no. 3 EStG when the assets are held privately.
- Planned reform: Certain “exchange crypto-assets”, such as Bitcoin and Ether, acquired after 31 December 2026 may in future be taxed as investment income. This has not yet been enacted.
1. Current law: How privately held crypto-assets are taxed
In its judgment of 14 February 2023 (IX R 3/22), the Federal Fiscal Court confirmed that currency or payment tokens such as Bitcoin held as private assets are “other assets” within the meaning of section 23 EStG. The Federal Ministry of Finance guidance dated 6 March 2025 uses the broader term crypto-assets and explains the treatment of sales, swaps, staking, lending, mining, hard forks and airdrops.
Sale or swap within one year
If no more than one year passes between acquisition and disposal, the gain may be taxable as a private disposal transaction at the taxpayer's personal income tax rate.
A disposal includes:
- selling for euros or another government-issued currency,
- swapping one crypto-asset for another,
- paying for goods or services with crypto-assets.
Example: You buy Bitcoin for €8,000 and swap it for Ether eight months later when it is worth €11,000. The swap is a disposal of the Bitcoin. The €3,000 gain is generally taxable. A new acquisition date begins for the Ether received.
Sale after the one-year period
If the disposal takes place after more than one year, a gain on privately held assets is generally not taxable under the law currently in force. According to the tax administration, passive staking or lending does not extend the period to ten years for privately held currency or payment tokens.
€1,000 exemption threshold
Gains are tax-free if the aggregate gain from all private disposal transactions during the calendar year is less than €1,000. This includes more than crypto transactions alone. It is an exemption threshold, not an allowance: once €1,000 is reached, the entire gain may be taxable.
2. Staking, lending, airdrops and hard forks
Passive staking
Rewards from passive staking are generally other income from services under section 22 no. 3 EStG when earned as part of private asset management. The market value at the time of receipt generally applies. The Ministry's guidance permits the wallet booking time to be used for rewards claimed during the year; unclaimed rewards must be recognised no later than year-end.
Lending
Under current administrative guidance, a private investor who temporarily transfers crypto-assets in return for remuneration also earns other income under section 22 no. 3 EStG. Crypto-assets received must be recognised at their market value upon receipt. A later disposal of those rewards is assessed separately.
Combined €256 exemption threshold
Income from services under section 22 no. 3 EStG is not subject to income tax if the combined amount is less than €256 in the calendar year. This threshold does not apply separately to each activity. It covers all relevant service income together, including passive staking, lending, certain airdrops and, where applicable, non-commercial mining.
Airdrops
The tax treatment of an airdrop depends on what the recipient provides in return. Promoting a project on social media or sharing more data than technically necessary may constitute a taxable service under section 22 no. 3 EStG. If the allocation has no economic connection to a service, other rules, potentially including German gift tax, may need to be considered. A later disposal must be assessed separately.
Hard forks
According to the Ministry's guidance, a hard fork does not itself give rise to income under section 22 no. 3 EStG when the assets are privately held. A later sale of the newly created crypto-assets may constitute a private disposal transaction. Their acquisition date generally follows that of the original crypto-assets, and existing acquisition costs must be allocated.
3. Mining and forging: private or commercial activity?
Mining and active forging are often commercial where the activity is carried out independently, sustainably, with the intention of making a profit and with participation in general economic activity. The resulting income then falls under section 15 EStG.
If an activity is not sustainable, its proceeds may instead qualify as other income under section 22 no. 3 EStG. This distinction matters: German income tax assistance associations may not advise on commercial mining or commercial crypto trading. Please check whether your case is eligible before proceeding.
4. Planned German crypto tax reform from 2027
According to a ministerial draft that became public in September 2026, the Federal Ministry of Finance is planning a change of system for certain crypto-assets. The draft is still at an early stage. It has not been passed by the Bundestag or promulgated in the Federal Law Gazette.
What may change under the draft
- New category: Certain crypto-assets as defined by the European Markets in Crypto-Assets Regulation (MiCA) and accepted as a means of exchange may be classified as “exchange crypto-assets” (Tauschkryptowerte). Bitcoin and Ether are named as examples.
- Investment income instead of private disposal: Gains from covered new holdings may be treated as investment income regardless of how long the asset was held.
- Tax rate: The draft generally envisages the special 25% rate plus solidarity surcharge and, where applicable, church tax.
- Cut-off date: Based on the currently known draft, the new classification would apply to crypto-assets acquired or received after 31 December 2026.
- Existing holdings: Assets acquired up to and including 31 December 2026 would generally remain subject to the existing rules under sections 22 and 23 EStG, including the one-year period.
- Withholding: Automatic withholding of investment income tax by covered service providers is currently planned from 1 January 2028. Relevant 2027 income may therefore still need to be declared by the taxpayer.
- Lending and passive staking: Recurring income from covered exchange crypto-assets may also enter the new system. This could include rewards received after the cut-off date from older holdings.
Assets not automatically covered by the planned category
Based on the currently known draft, NFTs, security tokens, crypto-assets conveying a real-world asset or legal right, and MiCA-regulated e-money tokens would not automatically qualify as exchange crypto-assets. The treatment of a “stablecoin” also depends on its specific legal structure.
Existing and new holdings – example based only on the current draft
Existing holding: Bitcoin purchased in December 2026 would generally remain in the existing system. A sale within one year would still be assessed under section 23 EStG; after more than one year, the private gain may remain non-taxable.
New holding: A covered exchange crypto-asset purchased in January 2027 may be treated as investment income regardless of the holding period. Whether these rules take effect in this form depends on the further legislative process.
5. Records investors should retain now
The Federal Ministry of Finance guidance dated 6 March 2025 contains detailed cooperation and record-keeping requirements. For complex activity, an annual total alone will often be insufficient. Investors should retain:
- complete transaction histories for all exchanges and wallets,
- acquisition dates, purchase prices, fees and disposal proceeds,
- evidence of transfers between their own wallets or platforms,
- separate records for trading, staking, lending, mining, airdrops and forks,
- a traceable and consistently applied allocation method for each wallet,
- the raw data underlying any crypto tax report.
Tax reports can simplify the work. Their reliability depends on complete imports, correct settings and the plausible inclusion of every wallet. A report does not replace verification of its underlying data.
Crypto-asset service providers are also subject to reporting rules under Germany's Crypto-Asset Tax Transparency Act and the international DAC8/CARF framework. These rules improve the exchange of information between providers and tax authorities. They do not by themselves change the substantive tax treatment of a transaction, but they make complete records even more important.
6. Where are crypto-assets reported on a German tax return?
Under current law, gains from private disposal transactions generally belong in Anlage SO. Income from services such as passive staking or lending is also generally reported there. Commercial activity belongs in the business schedules and is outside the authority of a German income tax assistance association.
Whether Anlage KAP will apply to certain new holdings in future depends on the final legislation. Until then, current law remains decisive.
Conclusion: Apply current rules and monitor the reform
As of September 2026, privately held crypto-assets remain subject to the one-year period, the €1,000 threshold for private disposal transactions and the separate treatment of recurring income. Investors should preserve acquisition data and wallet-transfer evidence particularly carefully because the planned reform may draw a sharp distinction between existing and new holdings.
lexo.tax reviews private crypto matters within the statutory scope of an income tax assistance association. You can check whether your case is eligible, read about investment income, or contact us.
Legal authorities and sources
- Federal Fiscal Court judgment of 14 February 2023 – IX R 3/22
- Federal Ministry of Finance guidance dated 6 March 2025 on the income tax treatment of certain crypto-assets
- Federal Central Tax Office: DAC8 and international exchange of crypto-asset information
- DER BETRIEB, 14 September 2026: ministerial draft for the tax reform of exchange crypto-assets
Note: This article provides general information. Statements about the planned reform reflect the publicly known draft as at 20 September 2026 and will be updated as the legislative process develops.