Offsetting Crypto Losses Against Share Gains: What Is Really Allowed in Germany

The short answer is no. Losses from selling Bitcoin or other cryptocurrencies cannot be offset against gains from shares in Germany. The two belong to different categories of income, and the Income Tax Act keeps their loss buckets strictly apart. There is an exception all the same, and it affects more investors than you might think: losses from crypto derivatives fall under the same provision as share gains and can be offset there. Which of your losses belongs in which bucket, the order in which the tax office does the sums, and what you can still steer before the year is out, is set out in this guide. If you buy coins as private assets and sell them again within a year, that is a private disposal transaction under section 23 EStG. A private disposal transaction is the sale of an asset within the statutory speculation period, which for crypto-assets means within the one-year holding period. The gain is charged at your personal income tax rate, not at the flat-rate withholding tax. Shares run through section 20 EStG instead, income from capital assets. There the separate tax rate of 25 percent applies, plus the solidarity surcharge and, where applicable, church tax, and the bank wit...