Crypto holding period in Germany: when are gains tax-free?
In Germany, gains from privately selling cryptocurrencies are generally tax-free if you held the coins for more than one year (section 23 of the Income Tax Act, EStG). If you sell earlier, gains may be taxable.
How is the period counted?
The period runs separately for every purchase, starting from the purchase date. If you bought the same coin several times, the question is which coins were sold. The usual approach is FIFO (first in, first out): the oldest coins count as sold first.
The annual allowance
Profits from private sales within the holding period stay tax-free as long as the total for the calendar year is below 1,000 euros (since 2024). It is an allowance limit, not a deduction: once you exceed it, the whole profit is taxable.
Special cases
Swapping one crypto for another counts as a sale. Income from staking, lending or mining is treated differently, and other rules and periods can apply. Tax rules can also change – please check the current situation.
Keeping the deadline in view with budgentis
budgentis stores every purchase with date and exact amount, matches sales using FIFO and shows for each purchase how many days remain until it becomes tax-free – plus live prices, cost basis and gains.
This page is general information, not tax advice. If in doubt, ask a tax advisor.
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