Germany is popular among crypto investors as a European nation with low and sometimes avoidable taxes on crypto. However, the tax system is complicated, and requires a knowledge of German regulations for crypto as well as fiat income.
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What is the German Tax Authority?
The Bundeszentralamt für Steuern (BZSt) is the authority responsible for tracking and implementing taxes in Germany, including crypto taxes. KYC exchanges based in Germany pass user information to the BZSt for the purpose of tracking and collecting crypto taxes from German users.
The BZSt is also authorized to check whether someone in Germany owns crypto by looking at the accounts and records of other types of crypto companies.
Is Crypto Taxed in Germany?
Crypto is taxed in Germany, although it’s possible to avoid taxes while following the law. Crypto held for over a year without selling is not subject to taxes when sold for a profit, making Germany an appealing tax haven when it comes to crypto.
Who Has to Pay Crypto Taxes in Germany?
Miners, stakers, people getting paid in crypto, people minting or investing in NFTs or DeFi services, and business owners dealing in crypto will likely owe some form of crypto tax.
The BZSt has not issued specific guidelines on DeFi or NFTs yet, and it’s a good idea to consult with a tax attorney or other professional if in any doubt as to how to pay your taxes.
However, the general rule that selling for a profit before holding assets like NFTs or crypto for a year will generate a taxable event still applies.
How is Crypto Taxed in Germany?
Germany views crypto as private money rather than property subject to capital gains tax.
The following are subject to taxes:
- Profits over 600 euros
- Income from crypto salary
- Income from mining
- Income from staking
The above forms of income or profit are subject to 0% to 45% tax plus 5.5% solidarity tax, and the taxes are calculated based on your income.
Earnings under 10,000 EUR are not subject to tax, while 10k to 62k are taxed at a rate between 14% and 42%.
Income tax applies to earnings above 256 EUR.
German Income Tax Rates 2023
|Single Tax||Married Tax||Rate of Tax|
|€0 to €10,632||€0 to €21,264||0%|
|€10,632 to €61,971||€21,264 to €123,942||14 to 42%|
|€61,971 to €277,825||€123,942 to €555,650||42%|
How to Calculate Crypto Taxes in Germany 2023
To calculate taxes for 2023, it’s important to keep a strict record of any transactions you’ve made involving crypto. Your records will allow you to track whether you’ve held a coin for over a year as well as other important information.
You can use tools like a tax calculator or crypto tax software to help you with your taxes, and of course, consulting a tax accountant, attorney, or other crypto tax professional is always a good idea.
Tax-Free Crypto Events in Germany
Buying crypto for fiat, selling crypto for a loss, selling for profits of under 600 EUR in a year, gifting under 20,000 EUR worth of crypto, and donating crypto are all situations that do not generate any taxable events.
Spending Crypto in Germany
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German residents are eligible to apply for a card through our whitelist. Sign up to be one of the first people to receive a CryptoWallet.com crypto card!