Private disposal transaction (privates Veräußerungsgeschäft)

Under § 23 of Germany’s Income Tax Act (EStG), a private disposal transaction occurs when you buy something as part of your private assets and sell or swap it again within a set period. For bitcoin, that period is one year; the Bundesfinanzhof, Germany’s Federal Fiscal Court, confirmed in 2023 that bitcoin falls under the rule. After the year is up, the gain is not taxable.^[1],[2]

What counts as a disposal

• Selling for euros or any other currency,
• swapping for another crypto-asset, including a stablecoinGlossaryStablecoinA crypto-asset whose value is meant to be pegged to a currency such as the US dollar or the euro. Unlike bitcoin, a stablecoin has an issuer – its value depends on the issuer keeping its reserves and remaining solvent.In the glossary →× – a new period starts for what you receive,
• paying for goods or services with bitcoin.^[3]

Moving bitcoin between your own wallets is not a sale, because nothing goes to a third party in return for payment. Still, record the date, amount and transaction ID.^[3]

Gain and exemption limit

Gain = sale proceeds − acquisition costs − income-related expenses (Werbungskosten). Fees when buying count towards the acquisition costs, fees when selling as expenses. If you can’t show which bitcoin you sold, the ones bought first count as sold first for the holding period, separately for each wallet (FIFOGlossaryFIFO (first in, first out)A tax ordering rule: in Germany, if you can’t prove which bitcoin you sold, the ones bought first count as sold first for the holding period – assessed per wallet.On the learning path: Stage 6 · Step 3 – Bitcoin & tax →In the glossary →×).^[1],[3]

The gain stays tax-free if all your private disposal gains in a year total less than €1,000. That is an exemption limitGlossaryExemption limit (€1,000 Freigrenze)In Germany, gains from private disposal transactions stay tax-free if they total less than €1,000 in a calendar year. From €1,000, the entire gain is taxable.On the learning path: Stage 6 · Step 3 – Bitcoin & tax →In the glossary →×, not an allowance: a €990 gain is tax-free, a €1,000 gain is taxable in full. Losses can only be offset against such gains – in the same year, the previous year or later years.^[1] A loss after the holding periodGlossaryHolding period (speculation period)In Germany, the gain from selling privately held bitcoin is tax-free if more than one year passes between purchase and sale (§ 23 EStG, as of September 2026). Each purchase has its own holding period.On the learning path: Stage 6 · Step 3 – Bitcoin & tax →In the glossary →× has ended doesn’t count.

Whether the holding period will be scrapped for future purchases is politically contested; no such law has been passed (as of September 2026) – see the reform tracker. Not tax advice.