Examples:
Bitcoins, Stablecoins, Crypto assets trading, Mining costs, Staking
In Germany, crypto assets are generally not deductible – but there are exceptions
Losses from selling crypto can be deducted if the assets are sold within one year, and these losses can be offset against other taxable profits. Long-term losses (from holding crypto for more than a year) are not deductible unless the activity is part of a business operation.
Additionally, certain related expenses can be deducted if you are self-employed or running a business, including:
Transaction fees (buying, selling, transferring)
Mining costs (hardware, electricity)
Software and professional fees related to managing crypto.
To sum up:
| Scenario | Tax deductible | Examples |
|---|---|---|
| Losses from crypto sold within one year | ✅ Yes, can be offset against other taxable profits | Loss from sale can be used to offset other gains in the same year |
| Long-term losses (held for more than a year) | ❌ No, unless part of a business operation | Losses cannot be deducted, unless the activity is business-related |
| Expenses related to crypto for self-employed or businesses | ✅ Yes, if related to business activities | Transaction fees, mining costs, software/professional fees |
| Profits from staking | ⚠️ Profits from staking are taxable as income. Expenses related to staking (if business) are deductible. | Staking rewards are taxable; related software or fees may be deductible for businesses. |