Staking Taxes in Germany: The Inflow, the 256-Euro Threshold and the Holding Period

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.Staking is taxed twice: once when the reward arrives and once when you sell it later. This article explains both moments, the threshold of 256 euros, the separate twelve-month period and what applies to liquid staking, restaking and staking ETPs.The key points at a glance Two moments, two taxes: staking is taxed when the reward arrives and taxed again when you later sell it. Anyone thinking only about the sale is missing half the picture. The inflow is income from other services under Section 22(3) of the German Income Tax Act (EStG), valued at the market price at the moment it arrives and charged at your personal tax rate. A threshold of 256 euros a year. It is a threshold, not an allowance: one euro above it makes the entire amount taxable. It has nothing to do with the 1,000 euros under Section 23. Twelve months, not ten years. The extended holding period has been cleared up by the tax authorities. Every reward you receive starts a period of its own on the day it arrives. The...