Bitcoin tax return: How do I have to tax cryptocurrencies?
In contrast to stock trading, investors at Bitcoin and Co. have to take care of the taxes themselves. When and how to report profits from crypto coins and Bitcoin ETPs to the tax office
Donald Trump's election to US President has cryptocurrencies, especially the Bitcoininspired: On the day of Trump's inauguration on January 20, the Bitcoin value rose to the previous record high of $ 109,340. Since then, the value for the US dollar has meanwhile dropped by more than 28 percent. A Bitcoin currently costs around $ 83,000. Crypto fans, who sold their digital currency in good time and have thus realized profits, can be lucky. They have sometimes placed a lot in the past few months.
However, the tax office may also be interested in profits from digital currencies. In Germany, crypto-assets are not an official means of payment, but as an investment. However, unlike stock trading, for example, in which the bank or broker retains compensation tax and loses to the tax office, investors with crypto wins usually have to become active themselves.
Court: Cryptoandel is taxable
Anyone who acts with crypto-assets such as Bitcoin and made profits must tax them. That sounds logical and has already been clarified by the Federal Ministry of Finance (BMF) in a letter dated May 10, 2022: The rules for private sales transactions and the personal tax rate apply.
However, many crypto fans doubted this, after all, cryptocurrencies are not tangible assets. However, the Federal Finance Court (BFH) – Germany's top tax court – did not work and in 2023 struck a judgment on the side of the financial administration (Az. IX R 3/22): Even if cryptocurrencies only exist in digital space, they have been assembled, according to whose trading, according to the judges. Finally, Bitcoin, Ethereum, Monero and Co. are traded on special platforms, which means that a market price for digital means of payment can be determined and the tokens can be assessed independently.
The court also denied tax exemption due to a “structural enforcement deficit” on the part of the tax offices. There are no indications that the tax authorities cannot determine and record profits and losses from shops with cryptocurrencies. Crypto investors cannot simply avoid the taxation of their crypto deals just because in individual cases it is difficult for the tax office to control the tax bases and then rely on the help of the taxpayer.
Speculation period: Bitcoin gains after one year tax-free
As long as investors keep their crypto values, the private matter is. But as soon as you sell them, you have to expect the tax office. It doesn't matter whether you sell your virtual currency to third parties or exchange them in a different cryptocurrency or for a state currency and whether you use the services of a domestic or foreign trading center. It is crucial in what form crypto enthusiasts invested in Bitcoin and Co. and how long they have held the investment.
As when selling gold bars, antiques and works of art A one -year speculation period applies to real crypto values. So if you hold your coins in digital wallets, the so -called wallet for at least a year, or keep it via a crypto handle area, you collect any regulatory gains tax -free. Conversely, losses also remain private.
Sell investors earlier, canthey are taxable. At least if the profit from all private sales transactions reaches or exceeds the exemption limit of 1000 euros in a calendar year. Then all profits from the first euro are taxable. The individual income tax rate, which is between 14 and 45 percent, applies. In addition, there may be the solidarity surcharge and church tax. If, on the other hand, crypto investors remain under this profit threshold with all their private sales transactions of one year, they do not have to pay taxes.
Discontinue Bitcoin losses from the tax
The following applies to losses: Anyone who has achieved this within twelve months can use the crypto miesen to the tax return for other income via the “So” system “So” offset with profits from other private sales transactions – if necessary with those from the previous year or from the following years.
How do you enter Bitcoin and crypto gains in tax return?
Investors have to take care of the taxation of their crypto sales. So you have to submit a tax return at the latest in the following year and note all transactions in the system “SO”. As crypto owners proceed, the BMF explained in a letter dated March 6, 2025.
The “first-in-first-out” method (FIFO) is common: When calculating the holding duration, it is assumed that the crypto coins that a trader first bought are also the ones that he first sold again. The profit is the positive difference between the individual acquisition costs of the coin sold and the sales price achieved.
But sometimes this individual view is very complicated, for example when investors have born or sold a variety of tokens at different times. In the case of these cases, the BMF alternatively allows the following procedure: In order to calculate the stopping period, the crypto values purchased first are considered sold. However, the profit determination takes place using average method. The average purchase price of all coins is calculated. Its difference to the sales price is the profit.
Because cryptocurrencies are subject to particularly strong price fluctuationsthe profit depends heavily on the time of sales and the current currency course. Therefore, investors should document all information meticulously in order to be able to answer possible questions from the tax office. In the meantime, some brokers provide their customers with transaction lists with which individual processes can be understood.
The tax office will also look more on this in the future. In its letter of March 2025, the BMF continues to call up regularly and completely overviews and tax reports in order to document their crypto activities transparently. Anyone who hurts must expect the tax office to appreciate the tax bases.
Do you have to pay taxes on Bitcoin ETPS?
In the meantime, people interested in crypto can also invest in the digital currency of their choice otherwise. So far, crypto ETFs have not been approved in Germany, but Exchange Traded Products (ETP) and certificates on regulated stock exchanges such as Xetra have been traded. These structured securities form the price development of a underlying – here that of digital assets – or invest directly in them.
ETPs are subject to the compensation tax. It doesn't matter how long the papers were in the depot. In the event of profits, 25 percent compensation tax is dueif the saver allowance of currently 1000 euros per year is exhausted. Only this will remain tax -free. Losses of crypto ETPS and certificates automatically offset domestic depot banks with profits from securities. They also issue a tax certificate at the end of the year.
A special case is crypto ETPS that promise a so-called extradition claim on crypto tokens. Investors who invest in such crypto ETPs are entitled to the underlying cryptocurrency and can be delivered as an alternative to sale via the stock exchange. Therefore, the same control rules apply to the taxation of profits from products with delivery option as with real crypto coins: after one year, sales gains remain tax-free; They must be specified in personal income tax within the year.
