Crypto taxBeginner
Germany: the one-year rule
In Germany, coins held for more than one year are tax-free when sold or swapped, while selling, swapping or spending them within a year is taxed at your personal income tax rate.
- What it means
- The year is counted per coin, oldest coins first (FIFO), and short-term gains under €1,000 a year in total are tax-free, but from €1,000 the whole amount is taxable, not only the part above it.
- What to watch
- When each coin turns one year old, your short-term gains for the year against the €1,000 limit, and staking income, which is tax-free under €256 a year and does not extend the one-year period.
- How Compass-Alpha uses it
- The tax overview applies Germany's rules as published for 2026 to your uploaded exchange files, with a calendar of coins about to turn tax-free, and the free tax guide for Germany explains them.
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