Crypto Tax 2026: Everything You Need to Know
Taxes on Bitcoin, Ethereum & co. explained simply: tax-free limit, holding period, reporting gains – our complete 2026 guide.
The €1,000 tax-free limit
Gains from selling cryptocurrencies are taxable in Germany as private sales – but only if total gains exceed €1,000 per year. Below that, gains stay tax-free. This limit applies to all cryptocurrencies combined.
Important: this is a limit, not an allowance. If you exceed €1,000 by even one cent, the entire gain is taxable.
The 1-year holding period
If you hold a cryptocurrency for more than one year, the gain on sale is completely tax-free. This applies to Bitcoin, Ethereum and all other coins.
The period starts on the purchase day and ends exactly one year later. Sell one day after the period ends and the gain is tax-free – one day earlier and it is fully taxable.
What about staking and airdrops?
Staking rewards and airdrops are considered other income in Germany and are taxable above an allowance of €256 per year. They are not subject to the holding period.
Staking rewards are taxed at their market value on the day received. Later gains when selling these coins can then be subject to the holding period again.
How to document your trades properly
The tax office requires complete documentation of all transactions. Keep a crypto tax tool or a detailed spreadsheet with purchase date, purchase price, sale date and sale price.
Free tax software can import your trades directly from the exchange and calculate gains automatically. This saves time and avoids errors.