If you earn staking rewards, this also affects your tax return. It is also important to know how your cryptocurrencies are protected during staking. Here you will find all the details.
Tax Treatment of Staking Rewards
In Germany, staking rewards are considered other income. It is important that you correctly declare these earnings in your tax return.
Taxation of Earnings
Type of income: Staking rewards are taxed as other income according to § 22 No. 3 EStG.
Exemption limit: There is an exemption limit of 256 EUR per calendar year. If your total other income (including staking) remains below this amount, it is tax-free. Once you reach this amount, the entire profit must be taxed.
Holding period: According to the current legal situation of the Federal Ministry of Finance, staking does not extend the holding period of your original coins to ten years. The regular period of one year for tax-free capital gains remains.
Tax Report Documents for your tax return You do not have to labouriously calculate your rewards yourself. BISON makes it easy for you:
Info report: We provide you with a detailed info report annually.
Location: You can find this under “Account” ➞ “Info Reports”.
Content: The report lists all your received staking rewards clearly, so you can easily transfer the values into your tax return.
Here is an example excerpt from the info report:
Please note that this info report is not legally binding. The final review and declaration in your tax return are your responsibility. For specific questions, please contact your tax advisor.
Security of Your Cryptocurrencies
Security is a top priority at BISON – this naturally also applies to your staked holdings.
Custody Protection through regulated partners
Licensed custody: Your cryptocurrencies are securely held by Boerse Stuttgart Digital Custody GmbH. This is a German company with the corresponding MiCAR licence (Markets in Crypto-Assets Regulation) from the German Federal Financial Supervisory Authority (BaFin).
No lending: Your coins are used exclusively for staking in the respective network. BISON does not operate so-called “lending” (lending coins to third parties) to avoid additional risks.
Technical security: To protect you from the risks of staking, we have developed an innovative staking insurance together with Munich Re. This covers the main risk slashing and thus protects against damage that can result from technical failure, operator error or fraud leading to loss of part or all of the staked ETH . can.
Staking service provider: We rely on Staking Facilities as a reliable partner based in Germany that supports our staking offering.
Please note that this service is currently not regulated under MiCAR and lacks the protections and oversight established by EU regulations. For comprehensive information on staking risks, please refer to the .