DeFi taxes in Germany
In short
German tax law has no rules of its own for DeFi: what you do in apps on the blockchain is taxed like any other crypto asset. Under § 23 of the Income Tax Act (EStG), swapping one token for another is a disposal (paragraph 54 of the finance ministry's letter of 6 March 2025). The gain is taxable if you didn't hold the token for more than a year, unless all such gains for the year together stay under €1,000 (paragraph 53).
Rewards and interest, from staking or lending for example, are income under § 22 Nr. 3 EStG, at their euro value on the day you receive them (paragraphs 48 and 65). If this income stays under €256 in total for the year, you pay no tax on it (paragraph 45).
The main open case is liquidity pools, which the BMF letter doesn't mention. TaxMaxi treats a deposit as a swap, but that reading is disputed; both readings are on the liquidity pools page.
- As of:
- Based on:
- § 22 EStG, § 23 EStG, BMF letter of 6 March 2025
DeFi by topic
-
Bridges
The same token sent to your own wallet on another chain isn't a sale, and a different token is a swap.
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Lending
Lending isn't a sale. The interest is income, at the end of each year at the latest.
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Liquidity Pools
TaxMaxi reads a deposit as a swap into your position, which is disputed; fees are income when you collect them.
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Staking
Staking isn't a sale, and every reward is income on the day it's credited to you.
Common questions
Is DeFi taxable in Germany?
That depends on what you do. A swap is a disposal, and a gain on it is taxable within a year (paragraphs 53 and 54). Rewards and interest are income when you receive them (paragraphs 48 and 65). Coins you stake are locked but not transferred; staking itself isn't a disposal (paragraph 13).
Is a swap on a DEX taxable?
Yes, if you swap at a gain and didn't hold the token you gave up for more than a year: a swap into another crypto asset is a disposal, whether on an exchange or in an app on the blockchain (paragraph 54). After a year the gain is tax-free; coins like ETH or SOL have no ten-year period (paragraph 63).
Which exemption limits apply to DeFi?
Two, and they aren't added together: €1,000 a year for gains from private sales under § 23 EStG, meaning swaps and sales (paragraph 53), and €256 a year for income under § 22 Nr. 3 EStG, meaning rewards and interest (paragraph 45). Both are exemption limits (Freigrenze), not allowances (Freibetrag): once you reach one, the whole amount is taxable, not only the part above it.
Is a bridge a sale?
Neither § 23 EStG nor the BMF letter mentions bridges. If the same token arrives in your own wallet on the other chain, then on TaxMaxi's reading you aren't selling anything: it only changes chain and keeps its purchase date. If a different token arrives, it's a swap (paragraph 54). There's also the reading that every bridge is a sale; both readings are on the bridges page.
Is depositing into a liquidity pool taxable?
That isn't settled, because the BMF letter doesn't mention liquidity pools. TaxMaxi treats a deposit as a swap for your position and a withdrawal as a swap back (paragraph 54); fees are income when you collect them. According to a specialist article, the tax offices are said to see no disposal for now. Both readings are on the liquidity pools page.
Do I have to be able to document every DeFi transaction?
Yes. Every disposal has to be traceable on its own: which token, how much, when it was bought and sold, at what price, and how long you held it. For lending, the start, the end, the token, the payment and the terms have to be known (paragraph 102). Your tax return takes the totals, and you show the tax office the breakdown when it asks for it.
Sources
- § 22 EStG
Other income: rewards and interest in Nr. 3, the €256 limit
- § 23 EStG
Private sales: the one-year holding period and the €1,000 limit
- BMF letter of 6 March 2025
How tax offices tax crypto assets, as a PDF from the finance ministry
This page explains how TaxMaxi calculates. It is not tax advice and does not replace a tax advisor.