How Do I Declare Bitcoin on My German Tax Return?

If you’ve earned or sold Bitcoin in Germany, you may need to declare it on your tax return (Steuererklärung). The German tax office (Finanzamt) treats cryptocurrency as private property, and depending on how you use it, you may owe income tax or simply need to report capital gains.

Here's a step-by-step guide on how to declare your crypto assets legally and correctly.

🧾 1. Determine If You Owe Taxes on Your Bitcoin

Before declaring anything, ask yourself:

• Did I sell, spend, or trade Bitcoin within 12 months of buying it?
• Did I earn more than €600 in gains from private sales this year?
• Did I mine, stake, or receive Bitcoin as income or payment?

If yes to any of the above, you’ll need to declare it.

🗂 2. Use the Correct Tax Form (Anlage SO)

• For private sales (e.g., selling or spending Bitcoin), use Anlage SO (Sonstige Einkünfte – “other income”).
• Report the date of acquisition and sale, amount received, original cost, and profit/loss.
• You’ll only pay tax if the gain exceeds €600 and the holding period is under 1 year.

💡 If held over 12 months → no tax and no declaration required (unless you're specifically asked by the Finanzamt).

💼 3. Earnings from Mining, Staking, or Business Use

• Use Anlage S or Anlage G if your crypto income is classified as self-employment or business income.
• If you’re a freelancer or operating a mining rig as a business, consult a tax advisor to file properly.

💡 4. Keep Accurate Records of All Transactions

You should maintain:

• Purchase and sale dates
• Purchase price and sale value (in EUR)
• Exchange used
• Wallet addresses (if relevant)
• Fees paid

👉 Tip: Use crypto tax tracking software like CoinTracking, Accointing, or Blockpit to automate this.

📤 5. Submit Your Tax Return

• File online using Elster.de (Germany’s official tax portal), or with the help of a Steuerberater (tax advisor).
• Declare all crypto-related gains/losses in the appropriate forms.
• Attach supporting documentation if requested by the Finanzamt.

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✅ Summary: Declaring Bitcoin on German Taxes

Here's a breakdown of what to declare and when, based on your activity:

📉 Selling or Spending Bitcoin (Within 1 Year)

• Form to use: Anlage SO (Sonstige Einkünfte)
• Taxable? Yes, if profit exceeds €600
• Note: Gains are taxed at your personal income rate

⏳ Holding Bitcoin Over 12 Months

• Form to use: None (unless requested by Finanzamt)
• Taxable? No
• Note: Entire profit is tax-free if held for over 1 year

🪙 Mining, Staking, or Business Activity

• Form to use: Anlage S (Freelancer) or Anlage G (Business)
• Taxable? Yes
• Note: Income is treated as self-employed or business income

💶 Total Private Gains Under €600/year

• Form to use: Anlage SO (optional if not asked)
• Taxable? No
• Note: This €600 limit includes all private sale gains (not just crypto)

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