Germany
Crypto held >1 year: completely tax-free. Sold within 1 year: taxed as income (up to 45%). Annual exemption of €1,000 for short-term gains. Germany treats crypto as 'private money', not capital asset.
FATCA Partner
Yes
FATF Status
Clear
EU Blacklist
No
Dual Nationality
Not allowed
CARF Status
Committed
Bitizenship
Not yet
CARF Reporting
Committed
Germany has committed to implementing CARF but has not yet specified an exact timeline. When active, crypto service providers will be required to report user transactions to tax authorities.
Tax Rates
Activity Taxes
Staking
Up to 45% income tax (treated as miscellaneous income)
Mining
Up to 45% income tax
DeFi
Complex; staking/lending yields taxed as income
NFTs
Same 1-year rule applies
Taxable Events
Crypto → Fiat
Taxable
Crypto → Crypto
Taxable
Holding Period
Holding period benefit available
Hold >1 year = 0% tax. Sell within 1 year with profit <€1,000 = 0% tax. Sell within 1 year with profit >€1,000 = full income tax rate.
Regulation & Residency
Regulatory Body
BaFin (Federal Financial Supervisory Authority)
Residency Requirement
Standard EU residency rules; freelancer visa available
Reporting Requirements
Must report all crypto transactions; DAC8 from 2026
Citizenship & Residency Path
Residency via employment/business; citizenship after 8 years (6 with integration course)
Resilience & Plan B
Jurisdictional Resilience
How well-equipped this jurisdiction is for a crypto holder who wants stability, access, and protection.
JRS
Institutions (25%), banking (20%), tax clarity (20%), business (15%), privacy (10%), geopolitical (10%). Full methodology →
Plan B Readiness
How fast you can go from “I want to move” to “I’m a tax resident with banking and optionality.”
PBR
Business ease (25%), citizenship path (20%), dual nationality, quality of life & safety (15% each), Bitizenship (10%). Full methodology →
Notable Conditions
- →Crypto classified as 'private money' (Privates Veräußerungsgeschäft)
- →1-year holding period = complete tax freedom on gains
- →€1,000 annual exemption for short-term gains (was €600 until 2024)
- →Crypto-to-crypto swaps restart the holding period
- →Mining and staking income taxed at up to 45%
- →Strong legal framework within EU; MiCA compliance
- →Loss offset possible within same category
Living & Lifestyle
Cost of Living
Moderate-High
Banking Access
Excellent
Quality of Life
Very High
Lifestyle Scores