In Germany, crypto that is held for less than one year and any additional income from crypto is subject to Income Tax. The tax you will pay is the same as your regular Income Tax rate. If you hold your crypto for more than a year though, you'll pay no tax on your crypto gains!

Crypto is viewed as a private asset in Germany, unlike in many other countries where it is viewed as property. This means that crypto has an individual Income Tax, but only in certain circumstance.

If you've held your crypto for less than a year, you will pay income tax on any profits that you made when it was disposed of, unless your net gain in profits is less than €600.

Instance which would qualify as a disposal of crypto include:

If you hold your crypto for over a year in Germany, your gains are tax free when you dispose of the crypto, so it pays to hold.

In addition to this, you'll need to pay Income Tax on crypto transactions considered income, such as staking and mining transactions.

In Germany, you can offset your crypto gains with losses to reduce your total tax liability. In the case that there are no profits to offset, the losses can be carried forward to future financial years to offset future gains, if they are reported on the the tax return.

In Germany, you won't be taxed on crypto profits in these situations:

As you can see, Germany is one of the most crypto friendly countries!