Germany Declares Cryptocurrency Tax Exempt After One Year – Even When Used For Staking, Lending


The German Ministry of Finance has issued a letter officially confirming that the sale of crypto assets after a year is tax-free, even if the coins are used for staking and lending.

How cryptocurrency gains are taxed in Germany

The German Ministry of Finance announced on Wednesday that it has published a letter on cryptocurrency income tax.

This is the first time that there is a unified administrative map nationwide.

The Treasury Department detailed one of the most deeply debated questions at a hearing last year was whether the tax-free holding period for cryptocurrency loans and staking should be at least 10 years.

The Department of Defense, in cooperation with the federal government, said:

The letter now states that the so-called 10-year period does not apply to cryptocurrencies.

In Germany, cryptocurrencies are considered ‘private assets’, meaning that ‘personal income tax, not capital gains tax, is applied’. bought.”

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As a ‘private sale’ in Germany, cryptocurrency gains are completely tax-free after a holding period of one year.

“In addition, the proceeds from the sale of cryptocurrencies of up to €600 per year remain tax-free.” Previously, “When monetizing staked cryptocurrencies, the applicable duty-free holding period is at least one year.” 10 years.”

Crypto advisor Patrick Hansen, citing a letter issued by the Treasury, explained on Twitter:

The sales of acquired cryptocurrency assets remain tax-free after one year even if they are used for staking/lending.

U.S. Secretary of State Katja Hessel said, “Individuals are exempt from tax if they sell their acquired Bitcoin and Ether after one year. For example, if Bitcoin has been previously used for a loan or the taxpayer has provided Ether as someone else’s stake, the term will not be extended to 10 years.”

What do you think of this German tax law? Let us know in the comments section below.

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Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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