Can crypto be sold tax free in Germany?

In Germany, crypto can be sold tax free if it was held for over 1 year. Previously, if you've used crypto in a staking/lending protocol, you'd need to hold this crypto for 10 years for it to be tax free. However, this has now changed to the same 1 year holding period as of April 2022.

How do I declare my crypto activity in Germany?

You also have the option of declaring your crypto activity on paper and posting your tax forms to your local tax office (Finanzamt). To file your German crypto tax declaration, you'll may need 2 forms, one for general income, Hauptvordruck ESt 1 A, and one for your crypto income, Anlage SO.

Is koinly a good crypto tax software?

Koinly is not just crypto tax software, but a crypto portfolio tracker too - the perfect tool to keep records of your crypto purchase and sale dates. In Germany, crypto can be sold tax free if it was held for over 1 year.

How long is a crypto holding period?

The BMF has also recently clarified that this year holding period also applies to crypto that you've lent or staked - so provided you've held your asset for more than one year, even if you've staked or lent it, it is tax free. Previously many investors believed this holding period was 10 years.