(2025)
What are private sales transactions?
Private sales transactions are classified as other income and are regulated by Section 23 of the Income Tax Act (EStG). They involve the sale of certain assets from private property, where a taxable profit may arise under certain conditions.
What counts as private sales transactions?
1. Sale of non-owner-occupied property
If you sell a property that was not owner-occupied (e.g. rented out) within ten years of purchase, the profit is taxable (Section 23 (1) No. 1 EStG).
Exception: Tax exemption applies if the property was owner-occupied in the year of sale and the previous year, or continuously owner-occupied for two years.
2. Sale of other private assets
The sale of the following assets is also taxable if it occurs within one year of purchase:
- Gold bars or gold coins
- Foreign currencies
- Rented transport (e.g. boats, motorhomes)
Note: If the asset generates income (e.g. rental), the speculation period is extended to ten years.
What does not count as private sales transactions?
- Capital assets (e.g. shares, funds): Taxed via withholding tax
- Other types of income (e.g. commercial or business sales)
Cryptocurrencies as private sales transactions
Taxation of cryptocurrencies
- Sale within one year: Taxable if the profit exceeds 1.000 Euro (Section 23 (1) No. 2 EStG)
- Sale after more than one year: tax-free – also when used for lending or staking
Special regulations according to BMF (10.05.2022, updated 06.03.2025)
- Commercial trading or mining: May lead to classification as business assets
- Block creation (mining/forging): Considered a commercial activity, taxable from 256 Euro per year
BFH case law
The Federal Fiscal Court confirmed in its ruling of 14.02.2023 (Ref. IX R 3/22): Cryptocurrencies such as Bitcoin, Ethereum or Monero are assets. Capital gains within one year are subject to taxation under Section 23 EStG.
New cooperation obligations (BMF letter dated 06.03.2025)
The Federal Ministry of Finance, together with the federal states, has published new requirements for cooperation and record-keeping obligations for crypto assets:
- Obligation to document purchase and sale data
- Submission of tax reports with the tax return
- Regulations on claiming and the use of second-accurate rates or daily rates
The aim is transparent and legally secure assessment of income from digital assets.
