Bitcoin in Germany: rules, tax and how it's priced
In Germany bitcoin is quoted in euros per 1 BTC (BTC/EUR), usually written with a decimal comma, and small amounts are often given as a fraction of a bitcoin or in satoshis (100 million sats = 1 BTC). The figures on this page are the international BTC/USD price converted at today's EUR/USD exchange rate, before exchange fees, spreads and any local premium.
Is bitcoin legal in Germany? BaFin and MiCA
Owning and trading bitcoin is legal in Germany, but it is not legal tender. Germany regulated crypto early: since 2020 crypto custody has needed a licence from the Federal Financial Supervisory Authority (BaFin). Since 30 December 2024 crypto-asset service providers have been regulated under the EU's Markets in Crypto-Assets Regulation (MiCA), with BaFin as the national authority. Germany chose a 12-month transitional period, so firms operating under the old national licences could continue only until 30 December 2025. Since then any firm serving German customers needs MiCA authorisation, either from BaFin or from another EU regulator, because a MiCA licence is valid across the EU. ESMA's interim register lists authorised providers.
How is bitcoin taxed in Germany?
For private individuals, bitcoin is treated as an "other asset", and sales fall under the private sales rules in section 23 of the Income Tax Act (EStG). If you sell, swap or spend bitcoin more than one year after acquiring it, the gain is tax-free. If you do so within a year, the gain is taxed at your personal income tax rate, but only if your total gains from private sales in the year reach €1,000: below that they are tax-free, and above it the whole amount is taxable (the limit was €600 until 2023). Income from staking or lending is taxed as other income, with a separate €256 annual limit, and staking or lending does not extend the one-year holding period. The Finance Ministry has drafted a reform that would scrap the holding period and tax gains on crypto acquired from 1 January 2027 at the 25% flat tax on capital income, while coins bought before then would keep the current rules. As of October 2026 the draft was still being coordinated between government ministries, a cabinet decision expected in mid-October had been postponed, and it had not been approved by the cabinet or parliament.
Buying bitcoin in Germany and DAC8 reporting
German residents buy bitcoin in euros through MiCA-authorised exchanges and brokers, and a growing number of banks and online brokers offer crypto trading in their apps. Bitcoin exchange-traded notes (ETNs) are also listed on German exchanges such as Xetra and can be bought through an ordinary securities account. Since 1 January 2026 the Crypto-Asset Tax Transparency Act (KStTG), Germany's implementation of the EU directive DAC8, has required crypto-asset service providers to collect information on their users and report their transactions to the tax authorities, which share the data with other EU countries. Keep records of purchase dates and prices, because they decide whether a sale falls inside or outside the one-year period.
Legal and tax information last reviewed October 2026. Crypto rules change quickly — check with the regulator or tax authority, or a qualified adviser, before acting. This is not tax, legal or investment advice.