Germany Compliance Report

Regulatory Overview

Regulatory Status

Dedicated crypto/VA legislation, licensing regime, active enforcement

Key Regulator(s)

BaFin

Risk Level

low

Primary Legislation

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Travel Rule

Adopted — Threshold: Implemented

Tax Reporting

Crypto classified as private property; gains TAX-FREE after 1-year holding period for individuals. Corporate gains taxable normally.. **Short-term gains** (disposal within 12 months): Taxed at personal income tax rates (0-45% based on total income, with €10,908 basic allowance for 2024), but net gains ≤€1,000 are exempt and unreportable per §23 EStG (increased from €600 in prior years).[2][3][4][5]. **Long-term gains** (held >12 months): 0% tax, regardless of amount; applies to sales, crypto-to-crypto trades, spending, or NFT purchases if using such crypto.[1][3][4][5]. Losses from short-term disposals can offset gains in the same year or be carried forward.[2][3]. Derivatives/futures/margin trading on crypto is subject to 25% capital gains tax (plus solidarity surcharge), with no 1-year exemption; tax-free if ≤€801.

Key Facts

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