You should always consult a tax or legal advisor regarding your personal tax situation, especially in regard to the specifics of your country of origin. This information does not replace tax or legal advice.
We have also summarized the tax treatment for those liable to pay tax in Germany:
The exchange or re-exchange of cryptocurrencies, which were not generated by the seller himself, into Euro or another cryptocurrency leads to a private sale transaction within the meaning of § 23 Para. 1 Sentence 1 No. 2 EStG. However, the profit is only taxable if there is no more than one year between purchase and sale (speculation period) and the annual exemption limit of EUR 600 has been exceeded (From 2024 it’s 1,000 Euro). If you have any questions regarding the exemption limit for filing a joint tax return (also referred to as spousal income splitting), please contact a tax advisor. However, this exemption limit applies to the total profit from all private sales transactions within one year.
The gain from the sale of cryptocurrency is the difference between the acquisition cost and the sale price. The FIFO method is applied here (Section 23 (1) no. 2 sentence 3 EStG), according to which it is assumed that the portfolios acquired first were sold first.
If there is more than one year between purchase and sale, gains from the sale of cryptocurrencies in the private sector are not subject to income tax in this respect.
However, if you have specific questions, please consult a tax advisor.
