Tax tricks for crypto investors: How to save 1,000 euros a year!

Tax tricks for crypto investors: How to save 1,000 euros a year!

In 2025, the cryptocurrency market experienced a rapid increase, with more than 10,000 different digital currencies, as reported by the global database “Statista” and the internet portal “Investing.com”. Bitcoin remains the first and best-known cryptocurrency, followed by Ethereum and Tether. A central aspect in the discussion about cryptocurrencies is the tax classification, which states that they are not considered legal tender, but are defined as economic assets.

The Federal Ministry of Finance (BMF) has classified the different types of crypto assets, including currency or payment tokens, utility tokens, security tokens and hybrid crypto assets. This distinction has significant implications for the tax treatment of crypto activities, which may affect income from commercial operations, capital assets or private sales transactions. Profits resulting from the sale of crypto assets are tax-free as long as the holding period of more than one year is met. However, if sold within one year, the gains are fully taxable and subject to personal tax rates.

Tax aspects of cryptocurrencies

Since January 1, 2024, an exemption limit of 1,000 euros per year has applied to private sales transactions. This means that winnings up to this amount remain tax-free. For example, a profit of 990 euros remains tax-free, while a profit of 1,050 euros must be fully taxed. Income from staking or lending also counts as other income and is tax-free as long as it is less than 256 euros per year.

In Germany, cryptocurrencies are not subject to withholding tax, but are treated as private sales transactions in accordance with Section 23 EStG. The exemption limit of 1,000 euros also applies to the tax year 2025. Investors must actively ensure that they document their profits within the exemption limit. For married couples, the exemption limit can also be doubled to a total of 2,000 euros annually, which offers additional scope for tax-free profits.

Obligation to document and use tools

The documentation requirement for tax-free profits is essential in order to avoid additional taxes or estimates by the tax office. It is therefore recommended to use tools such as CoinTracking, Accointing and Blockpit, which can be easily combined with German tax law. These resources can help investors keep track of their profits and make the most of tax opportunities. The right information and careful planning are crucial to fully exploiting the tax opportunities in the cryptocurrency space.

In summary, it can be said that the tax treatment of crypto assets in Germany is complex. A thorough understanding of the exemption limits and documentation requirements is essential to avoid negative tax consequences and to make the most of the benefits that these digital currencies offer.

For further information, see the articles on Cash Online and Lawyer.de.