Tax in Germany: holding period and exemption limit
For German tax purposes bitcoin is an "other asset". The Federal Fiscal Court confirmed this in 2023 (IX R 3/22).
A sale counts as a private sale transaction if no more than one year lies between purchase and sale (section 23(1) sentence 1 no. 2 of the Income Tax Act). Buy on 15.03.2025 and sell from 16.03.2026 on, and you are outside that period.
For bitcoin in Germany two limits count: the period of one year between purchase and sale and the exemption limit per calendar year. Not tax advice.
Within the period: a gain of €999 in the year costs nothing, at €1,000 it is €300 at an assumed 30 %.
section 23(3) sentence 5, law as of 29.10.2026. Not tax advice.
Questions people ask
Are gains from bitcoin taxed in Germany?
A sale within one year of the purchase is a private sale transaction (section 23(1) sentence 1 no. 2 of the Income Tax Act). Whether tax is due then depends on the exemption limit per calendar year. Not tax advice.
What is the difference between an exemption limit and an allowance?
An allowance always stays tax free and only the part above it counts. With an exemption limit everything is tax free while the gain stays below it, and everything is taxable once it reaches it. Private sale transactions have an exemption limit of €1,000 (section 23(3) sentence 5).
When does the one-year period for bitcoin end?
One year after the purchase. Buy on 15.03.2025 and a sale from 16.03.2026 on lies outside the period (section 23(1) sentence 1 no. 2 of the Income Tax Act). Not tax advice.
Source: § 23 Abs. 1 Satz 1 Nr. 2 EStG, § 23 Abs. 3 Satz 5 EStG, as of 2026-10-29, retrieved 2026-10-29 · BFH, Urteil vom 14.02.2023, IX R 3/22, as of 2023-02-14, retrieved 2026-10-29
The tax depending on the gain at the exemption limit, and the period in one example.
The simulation, the comparison and the Beam stay free.
Education, not advice. Disclaimer