Germany NFT Tax Guide 2025

Finanzamt Treatment of NFTs

German tax authorities treat NFTs as private sales transactions (Privates Veräußerungsgeschäft):

• Buying = not taxable
• Selling = taxable if held <1 year
• Tax-free if held >1 year
• €600 annual exemption applies

Capital Gains Tax

1-Year Holding Period Rule

Held >1 year: Tax-free

Held ≤1 year: Taxed at personal income tax rate (14-45%)

€600 Annual Exemption

Total gains from all private sales transactions (NFTs + crypto + other assets):

• Total gains ≤€600: Tax-free
• Total gains >€600: Full amount taxable (not just excess!)

Calculation

Gain = Selling Price - Purchase Price - Transaction Fees

Example 1: Held <1 Year, Under €600

• Buy NFT: €300
• Sell after 6 months: €800 (- €40 fees)
• Purchase price: €300
• Net proceeds: €760
• Gain: €460
• Tax: €0 (under €600 exemption)

Example 2: Held <1 Year, Over €600

• Buy NFT: €2,000
• Sell after 8 months: €5,000
• Gain: €3,000
• Tax: €3,000 × marginal rate (e.g., 30% = €900)
• Note: Full €3,000 taxable, not just amount over €600

Example 3: Held >1 Year

• Buy NFT: €2,000
• Sell after 15 months: €10,000
• Gain: €8,000
• Tax: €0 (tax-free after 1 year)

Minting NFTs

Casual creator:

• Minting = not taxable
• Cost basis = minting fees (gas fees)
• Selling = private sales transaction (1-year rule applies)

Professional NFT creator/business:

• Sales = income from self-employment (Einkünfte aus selbstständiger Arbeit)
• No 1-year holding period benefit
• Can deduct business expenses
• Subject to income tax + potentially trade tax (Gewerbesteuer)

NFT Royalties

Creator royalties = income from self-employment:

• Report on Anlage S (self-employment income)
• Taxed at personal income tax rate (14-45%)
• May require trade tax registration if exceeds thresholds
• Social security contributions may apply

NFT Airdrops

Receiving NFT airdrops = other income (sonstige Einkünfte):

• Income = Fair Market Value in EUR when received
• €256 annual allowance for "other income"
• Cost basis for private sale = FMV at receipt
• 1-year holding period starts from receipt date

How to Report on Tax Return

Private Sales (Anlage SO)

1. Use form Anlage SO (Other Income)
2. Section: Private Veräußerungsgeschäfte
3. Enter each NFT sale separately (if held <1 year)
4. List acquisition date, cost, disposal date, proceeds
5. Apply €600 exemption across all private sales

Royalties (Anlage S)

• Report as self-employment income
• Enter gross income and deductible expenses

Airdrops (Anlage SO)

• Report under "Other Income"
• Apply €256 allowance

FIFO Method

If you own multiple identical NFTs:

• FIFO (First In, First Out) applies by default
• First NFT purchased is first NFT sold
• Important for calculating holding period

Record Keeping

Keep records for at least 6 years after the tax year:

• Transaction dates (acquisition and disposal)
• EUR values at transaction times
• Gas fees and marketplace fees
• Wallet addresses
• Transaction hashes
• Screenshots of marketplace listings

Tools

• Koinly - Germany tax reports
• Accointing - Swiss/German focus

Staking Extended to 10 Years?

⚠️ Important: German tax law extends the holding period from 1 year to 10 years for crypto assets that generate additional income (like staking).

Does this apply to NFTs?

• Probably not for most NFTs (no income generation)
• May apply to NFTs that generate royalties or staking-like rewards
• Legal clarity still developing

Consult a German Steuerberater if your NFTs generate ongoing income.

Common Mistakes

1. Not tracking 1-year holding period: Miss out on tax-free gains
2. Forgetting €600 exemption applies to ALL private sales: Must aggregate NFT + crypto gains
3. Not reporting airdrops as income: FMV at receipt is taxable
4. Claiming professional creator without business registration: Can trigger penalties
5. Not keeping adequate records: Finanzamt requires documentation

FAQs

Are NFTs tax-free after 1 year?

Yes, if held as a private investment (not business). After 1 year, gains are completely tax-free.

Does the €600 exemption apply separately to NFTs and crypto?

No. The €600 exemption applies to the total of all private sales transactions (NFTs + crypto + physical assets). If your combined gains exceed €600, the entire amount is taxable.

Do I pay capital gains tax on NFT sales?

Germany doesn't have a separate capital gains tax. NFT gains (if held <1 year) are taxed as "other income" at your personal income tax rate (14-45%).

What if I mint and immediately sell an NFT?

If you're a casual creator: private sales transaction rules apply (1-year holding period). If you're a professional: income from self-employment (no holding period benefit).

Are gas fees deductible?

Yes. Gas fees increase your cost basis, reducing taxable gains.