How is Bitcoin actually taxed in Germany – and what changes if the announced draft law arrives? These two questions are everywhere right now: at the pub, on X, in the German Bundestag. We (Tobi & Henry) have written up the complete overview for you: the rules in force as of June 2026, the new reporting obligations, the parties' positions in the legislative debate – and what the models under discussion would concretely cost you.
Important up front: we are not tax advisors, and this is not tax or legal advice but a carefully researched overview from practice. For your individual case, talk to a tax advisor – ideally one with crypto experience.
How Bitcoin is taxed in Germany (legal situation, June 2026)
For tax purposes, Bitcoin counts as an "other economic asset" within the meaning of § 23 EStG (German Income Tax Act) – like gold or art, not like stocks. Germany's Federal Fiscal Court confirmed this at the highest judicial level in 2023. From this follow the basic rules:
- Buying and holding is not a taxable event. As long as you don't sell, nothing happens tax-wise – no matter how much the price rises.
- Selling after more than 12 months: completely tax-free. That is the famous holding period. It applies regardless of the size of the gain.
- Selling within 12 months: a private sale transaction. The gain is taxed at your personal income tax rate. An exemption limit of €1,000 per year applies – careful: it's an exemption limit (Freigrenze), not an allowance. If all your private sale gains add up to €1,001, the entire amount is taxable, not just the one euro above the line.
- Paying and swapping also count as selling. Anyone who buys a hoodie with Bitcoin or swaps BTC into another cryptocurrency is "disposing" of it for tax purposes – within the one-year period that can be taxable.
- Order of disposal: For partial sales, FIFO (first in, first out) generally applies – the oldest coins count as sold first. Wallet-by-wallet treatment is possible.
- Losses from sales within the one-year period can be offset against gains from private sale transactions (including carrying back one year or carrying forward to future years).
- Staking and lending: The income from these counts as other income (exemption limit: €256/year). The previously discussed extension of the holding period to ten years is off the table – it remains one year, including for lent or staked coins.
The details are governed by the German Federal Ministry of Finance (BMF) circular on the income tax treatment of crypto assets (last updated in March 2025), including expanded documentation and cooperation obligations.
New since 2026: the tax office gets your exchange data
Independently of the holding period debate, the EU-wide reporting obligation (DAC8/CARF) has applied since January 1, 2026: crypto exchanges and service providers automatically report their customers' transaction data to the tax authorities – across borders. In practical terms: the tax office will know what you trade on exchanges from now on. Anyone who failed to declare gains within the one-year period in the past should proactively clear this up with a tax advisor. And anyone with clean documentation has nothing to fear – the tax exemption after one year of holding remains untouched by this.
The 2026 legislative debate: who wants what?
The holding period is politically up for discussion. The state of play (June 2026):
- SPD / Finance Ministry: Federal Finance Minister Lars Klingbeil has announced new rules for crypto taxation – a concrete draft bill is expected for July 2026. On the table is taxing gains regardless of how long you held. The ministry argues, among other things, that the income tax law "lacks a specific provision".
- Greens: Have already presented a legislative proposal – abolition of the holding period, taxation at the personal income tax rate. Failed in the Finance Committee for now, but still on the agenda.
- Left Party: Additionally demands an exit tax on crypto assets and even a ban on Bitcoin trading.
- CDU/CSU: Reject a change – it is not part of the coalition agreement. It remains open whether this position survives the budget negotiations.
- FDP & AfD: Are in favour of keeping the holding period.
Resistance to the abolition is forming within the community: a Bundestag petition to preserve the holding period was filed on May 30, 2026. Everything about it – including a guide to co-signing and the criticism from the space – is in our article Bitcoin's Holding Period Under Threat: The Petition, the Tax Plans – and What You Can Do Now.
What the models under discussion would cost you
Three scenarios for a gain of €10,000 after more than one year of holding:
- Status quo (current law): €0 in taxes. Tax-free after 12 months of holding.
- "Flat-rate tax like stocks" model: 25% + solidarity surcharge = effectively around 26.4% → roughly €2,640 in taxes (more with church tax).
- "Personal income tax rate" model: depending on income, 14–45%. At the top rate of 42% + solidarity surcharge → roughly €4,430 in taxes.
On top of that, both reform models would add the documentation burden: every transaction would have to be declared regardless of holding period – including FIFO calculations across all wallets and years. What today is a non-event after twelve months would become a permanent bookkeeping obligation for millions of savers.
Would a change apply retroactively?
A genuine retroactive effect on holdings bought under current law would be constitutionally delicate (protection of legitimate expectations, Art. 20(3) of the German Basic Law). Cut-off date models are more realistic: existing holdings keep the old rules, new purchases from the date the law takes effect fall under the new regime. But there are no guarantees – which is exactly why it pays to follow the debate now and not only once the law has been passed.
What you can do now
- Document cleanly. Purchase date, purchase price, exchange/wallet, sales – however the debate ends, a complete history is worth gold from 2026 onwards (reporting obligations!). Tools like CoinTracking or Blockpit handle the FIFO maths for you.
- Follow the debate. The draft bill is expected in July. We'll update this article as soon as it is published – with the actual content instead of speculation.
- Get active if the holding period matters to you. The Bundestag petition to preserve it needs 30,000 co-signatures – here's how it works. Or contact your representatives directly.
- Don't make panic decisions. The old law still applies. Selling out of fear of a law that doesn't exist yet is rarely a good decision – that would be the opposite of low time preference.
Frequently asked questions about Bitcoin and taxes in Germany
Are Bitcoin gains tax-free in Germany?
Yes, if you have held for more than 12 months. Gains from sales after the one-year holding period has expired are completely tax-free under § 23 EStG – regardless of the amount. If you sell within 12 months, your personal income tax rate applies (exemption limit: €1,000/year).
How high is the tax on Bitcoin gains within one year?
Gains from sales within the one-year period are taxed at your personal income tax rate – depending on income, 14 to 45 percent, plus solidarity surcharge and church tax where applicable. If all your private sale gains stay under €1,000 per year, they are tax-free (exemption limit).
Do I have to declare Bitcoin in my tax return if I only hold?
No. Buying and holding is not a taxable event. Only a sale, swap or payment within the one-year period can be taxable, and then belongs in the Anlage SO section of the German tax return.
Is paying with Bitcoin taxable?
Paying counts as a sale for tax purposes. If the coins you spend were bought more than 12 months ago, it remains tax-free. Within the one-year period a taxable gain can arise (mind the €1,000/year exemption limit).
Will the Bitcoin holding period be abolished?
That's open. A draft bill from the Federal Finance Ministry under Lars Klingbeil is expected for July 2026; the Greens and the Left Party demand abolition, while CDU/CSU, FDP and AfD are against it. As of June 2026, the holding period applies unchanged. A Bundestag petition to preserve it is underway.
What would change with the SPD draft law?
The exact content has not yet been published. Under discussion are a flat-rate capital gains tax as for stocks (around 26.4% effective) or taxation at the personal income tax rate – in both cases regardless of holding period. We'll update this article as soon as the draft is available.
Does my exchange report data to the tax office?
Yes. Since January 1, 2026, crypto service providers automatically report transaction data to the tax authorities under DAC8/CARF – EU-wide. Keeping your own clean records is more important than ever.
Does a longer holding period apply to staked or lent coins?
No. The 10-year period that was discussed for a while does not apply – it stays at 12 months. Income from staking or lending itself counts as other income with an exemption limit of €256/year.
Can a new Bitcoin tax apply retroactively?
A genuine retroactive effect is considered constitutionally problematic in Germany. Cut-off date rules with grandfathering for existing holdings would be more likely. But this is not binding – we'll have to wait for the draft bill.
What is the difference between an exemption limit and an allowance?
With an allowance (Freibetrag), only the amount above the threshold would be taxable. With the exemption limit (Freigrenze, €1,000 for private sale transactions), the entire gain becomes taxable as soon as the threshold is exceeded – including the part below it.
Our take
The current legal situation is one of the best in the world for long-term Bitcoin savers: hold for a year, sell tax-free. Whether it stays that way will be decided in the German Bundestag over the coming months. Until then: document cleanly, stay informed, don't act in panic – and if the holding period matters to you, raise your voice now, while the debate is still running.
Keep stacking sats,
Tobi & Henry
P.S.: Why the holding period is politically wobbling and how you can support the petition to preserve it is covered in our article Bitcoin's Holding Period Under Threat.
