Germany Just Formalized Benevolent Crypto Tax Guidelines

Germany confirms its position as the European leader in crypto. The Federal Ministry of Finance has just published the first national guidelines on the tax treatment of cryptos and the least we can say is that they are rather benevolent for the retail investor.

Individuals exempt from tax on cryptos

Across the Rhine, the tax treatment of cryptocurrencies and other digital assets has just been the subject of a uniform administrative instruction at the national level. According to the press releasethe document provides a clear, secure and simple framework for both the administration and individual taxpayers to comply with income tax rules.

This document says ” BMF letter » reviews the different aspects of the ecosystem, ranging from buying/selling cryptos, mining, staking, lending, the hard forks or airdrops, but also income settled in assets of this nature. It also defines the particular characteristics of utility tokens and security token to facilitate the interpretation of tax law.

Basically, what you have to remember is thetax exemption on the sale of tax crypto-assets provided that a one-year holding period is respected. The fact of using them in staking or lending is not, contrary to a persistent rumor, a tax trigger.

For individuals, the sale of acquired Bitcoin and Ether is tax-exempt after one year. The time frame does not extend to ten years even if, for example, Bitcoin was previously used for lending. The same is true for staking.

Katja Hessel, State Secretary in the Federal Ministry of Finance in Communicated

An encouraging but editable official document

However, this publication is not intended to be definitive. It is a step that does not end the discussion on this subject according to the ministerial official, insofar as “the rapid development of the world of cryptography” requires dynamic adjustments.

Whatever, the signal is positive and confirms the crypto-friendly position of Germany, which now occupies the top position internationally.


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Nathalie E. – 18 Apr 2022 – 16:58

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At a time when the European Union seems to be taking a more repressive turn towards the crypto industry, it is rather a relief to see the first economic power of the old continent consider it with a rather benevolent eye.. As for knowing what role it will play in the desire of the 27 to harmonize the regulatory framework which is being prepared in particular via MiCA, but also beyond, the unknown is total. On the other hand, as far as taxation is concerned, no miracle can be expected. Each country deciding on its own policy in this area, there will be no homogeneity at this level. Direct taxation remains the exclusive competence of the Member States, so we can continue to tear our hair out over the declarative skein of cryptos in France.

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Germany Just Formalized Benevolent Crypto Tax Guidelines

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