How are profits and losses from Bitcoin treated for tax purposes?
Cryptocurrencies such as Bitcoin, Ethereum, or Litecoin are increasingly used as a means of payment, but they remain primarily speculative assets.
The Federal Ministry of Finance has issued guidelines on the taxation of cryptocurrencies (BMF letter dated 06/03/2025).
Important tax principles:
- Capital gains from the sale or exchange of cryptocurrencies are taxable if the period between acquisition and sale is not more than one year (§ 23 para. 1 no. 2 EStG).
- New from 2024: Gains remain tax-free if the total gain from private sales transactions in the calendar year is less than 1,000 Euro (allowance).
- After the one-year holding period, the sale is tax-free, even if the cryptocurrencies were previously lent or staked.
- Repeated or extensive trading in cryptocurrencies may be considered a commercial activity and is then subject to income tax under § 15 EStG.
- Those who receive cryptocurrencies through mining or forging (block creation) generally earn commercial income. Under certain conditions, other income (§ 22 no. 3 EStG) is possible – e.g. in the case of occasional activity.
- Small amount regulation: Income from activities such as mining or staking remains tax-free if it is under 256 Euro per year in total.
Current case law
The Federal Fiscal Court (BFH) ruled on 14 February 2023 (IX R 3/22) that cryptocurrencies such as Bitcoin, Ethereum, and Monero are considered assets within the meaning of the Income Tax Act.
A taxpayer made a profit of around 3.4 million Euro from trading cryptocurrencies in 2017. The BFH clarified that these profits are subject to income tax if sold within the one-year period. The classification as an asset and taxation under § 23 EStG are constitutionally permissible.
Note: The taxation applies to all common cryptocurrencies, not just Bitcoin. The decisive factor is always the period between acquisition and sale and the type of use (private or business).
How are profits and losses from Bitcoin treated for tax purposes?
How are profits and losses from gold sales treated for tax purposes?
When you sell gold coins or bars, it is considered a private sale transaction (Section 23 (1) No. 2 EStG) for tax purposes. The key factor is how long you have owned the gold before selling it:
Sale within 12 months
If you bought the gold less than a year before selling it, profits up to 600 Euro per calendar year are tax-free. Important: This 600 Euro limit is an exemption limit, not an allowance. This means: As soon as your profit exceeds 600 Euro, the entire profit is taxable – as “other income” (Section 22 No. 2 EStG).
Losses from such transactions may only be offset against other profits from private sales transactions – either in the same year or as part of a loss carryforward or carryback.
Sale after more than 12 months
If more than a year has passed between purchase and sale, the profit is completely tax-free. Losses in this case are not considered for tax purposes.
For example: If you make a profit of 999 Euro, you pay no tax. If you make a profit of 1.000 Euro or more, the full amount is taxable.
Profits from private sales transactions must be entered in the “Form SO” of your income tax return – on the reverse side. However, this form is only required if the profits are at least 600 Euro.
Special regulation for married couples
The exemption limit of 600 Euro applies per person. Spouses cannot jointly earn 1.200 Euro tax-free. If the sale is made through a joint account, the profits are usually split equally between both (entry in line 47 of Form SO).
Tax treatment of Xetra-Gold and similar products
Some bonds – such as Xetra-Gold – do not provide cash but the right to delivery of physical gold. For tax purposes, these securities are now treated like real gold.
Federal Fiscal Court ruling on Xetra-Gold
As early as 2015, the Federal Fiscal Court (BFH) ruled that the sale or redemption of Xetra-Gold bonds is tax-free after more than one year. The BFH clarified that the bond is treated like physical gold for tax purposes (rulings of 12.05.2015 – VIII R 4/15, VIII R 35/14, VIII R 19/14).
This ruling was confirmed in 2020: Profits from the sale of such bonds are not considered investment income under Section 20 EStG but fall under private sales transactions – with the tax implications described above.
New case law on gold warrants
In a ruling dated 03.06.2025 (Ref. VIII R 5/24), the BFH decided that the redemption of so-called gold warrants may result in taxable investment income – even if the claim is not fulfilled in cash but by gold delivery.
In the specific case, the claimant had purchased certificates that gave him the choice at maturity: cash or gold warrants. The claimant chose gold, had the gold credited, and sold it later. The tax office considered this taxable income.
BFH decision
- The booking of the gold warrants into the account was tax-neutral.
- However, the subsequent crediting of physical gold to the metal account was considered a taxable redemption of a capital claim (Section 20 (2) sentence 2 EStG).
- The decisive factor was the value of the credited gold minus the acquisition costs of the warrants.
This legal opinion was also confirmed in similar cases (BFH rulings of 03.06.2025 – VIII R 23/24 and 01.07.2025 – VIII R 33/23).
How are profits and losses from gold sales treated for tax purposes?
