How are profits and losses from Bitcoin treated for tax purposes?
Cryptocurrencies such as Bitcoin, Ethereum, or Litecoin are increasingly used as a means of payment, but they remain primarily speculative assets.
The Federal Ministry of Finance has issued guidelines on the taxation of cryptocurrencies (BMF letter dated 06/03/2025).
Important tax principles:
- Capital gains from the sale or exchange of cryptocurrencies are taxable if the period between acquisition and sale is not more than one year (§ 23 para. 1 no. 2 EStG).
- New from 2024: Gains remain tax-free if the total gain from private sales transactions in the calendar year is less than 1,000 Euro (allowance).
- After the one-year holding period, the sale is tax-free, even if the cryptocurrencies were previously lent or staked.
- Repeated or extensive trading in cryptocurrencies may be considered a commercial activity and is then subject to income tax under § 15 EStG.
- Those who receive cryptocurrencies through mining or forging (block creation) generally earn commercial income. Under certain conditions, other income (§ 22 no. 3 EStG) is possible – e.g. in the case of occasional activity.
- Small amount regulation: Income from activities such as mining or staking remains tax-free if it is under 256 Euro per year in total.
The Federal Fiscal Court (BFH) ruled on 14 February 2023 (IX R 3/22) that cryptocurrencies such as Bitcoin, Ethereum, and Monero are considered assets within the meaning of the Income Tax Act.
A taxpayer made a profit of around 3.4 million Euro from trading cryptocurrencies in 2017. The BFH clarified that these profits are subject to income tax if sold within the one-year period. The classification as an asset and taxation under § 23 EStG are constitutionally permissible.
Note: The taxation applies to all common cryptocurrencies, not just Bitcoin. The decisive factor is always the period between acquisition and sale and the type of use (private or business).
How are profits and losses from Bitcoin treated for tax purposes?
How are profits and losses from gold sales treated for tax purposes?
Gold and silver have seen significant value changes in recent years. Many are considering selling their gold coins and bars to "cash in". But how are profits and losses from the sale of gold treated for tax purposes? The sale of coins and bars is considered a private sale transaction for tax purposes, and the 12-month holding period plays an important role (§ 23 para. 1 no. 2 EStG):
- For sales within 12 months of purchase, profits up to 600 Euro per year are tax-free. This is an exemption limit, not an allowance. Profits over 600 Euro are fully taxable as "other income" according to § 22 no. 2 EStG at the individual tax rate. However, capital gains tax does not apply. Losses may only be offset against profits from private sales transactions, through loss offset in the same year and through loss deduction in the previous and/or following years.
- For sales after 12 months, profits are completely tax-free and losses are irrelevant for tax purposes.
The exemption limit means: A total profit of 999 Euro is completely tax-free, whereas a profit of 1.000 Euro or more is taxable from the first Euro. Profits from private sales transactions must be declared in the income tax return in "Anlage SO" on the reverse side. However, you are only obliged to submit this "Anlage SO" if your total profit or the total profit of your spouse from private sales transactions is at least 600 Euro.
The exemption limit of 1.000 Euro applies per person, provided each person makes corresponding profits. It is not doubled for married couples. If purchases and sales are made through a joint marital account, the profits are attributed to both spouses equally (in "Anlage SO" in line 47). This way, the exemption limit is taken into account for each spouse.
There are bonds that entitle the holder to delivery of gold or another commodity and are backed by gold or another commodity in physical form. In Germany, this is particularly the XETRA-Gold bond from Deutsche Börse Commodities GmbH. The exciting question is how this bond is treated for tax purposes and whether it is subject to capital gains tax.
In 2015, the Federal Fiscal Court ruled that the profit from the sale or redemption of Xetra-Gold bearer bonds, which grant the holder a right to delivery of gold, is tax-free after the one-year holding period between the purchase and sale of the securities. As a result, the BFH equates the purchase and redemption or sale of the bond with the direct purchase or sale of physical gold (BFH rulings of 12.5.2015, VIII R 4/15, VIII R 35/14, VIII R 19/14).
Recently, the Federal Fiscal Court (in its ruling of 16.06.2020 (VIII R 7/17)) continued its case law, according to which the sale of exchange-traded bearer bonds that entitle the holder to delivery of physical gold and reflect the current gold price is not a taxable sale of a capital claim. According to the BFH, the profit made by the claimant from the sale of "Gold Bullion Securities" bearer bonds did not result in taxable income from capital assets within the meaning of § 20 para. 2 sentence 1 no. 7 EStG, as the bonds are not to be classified as other capital claims within the meaning of § 20 para. 1 no. 7 EStG.
How are profits and losses from gold sales treated for tax purposes?
