The tax treatment of cryptocurrencies differs significantly across the German-speaking region. While Germany relies on a holding period, Austria levies a flat capital gains tax, and Switzerland taxes crypto assets solely through wealth tax.
The three countries pursue fundamentally different approaches: Germany treats cryptocurrencies as private disposal transactions, Austria has applied the capital gains tax system since 2024, and Switzerland strictly distinguishes between private assets and commercial trading. These differences have a substantial impact on the tax burden for investors. The following comparison highlights the key distinctions and provides practical guidance for the 2025 tax return.
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Germany: Speculation period and exemption thresholds
Germany offers one of the most favorable regimes for long-term investors. Cryptocurrencies held for more than twelve months are completely tax-free upon disposal. This speculation period applies to Bitcoin, Ethereum, and all other cryptocurrencies under Section 23 of the German Income Tax Act.
For short-term gains of less than one year, a tax-free threshold of 1,000 euros has applied since 2024. This is a true exemption threshold, not an allowance: if gains remain below 1'000 euros, no tax is due. If the threshold is exceeded, the entire amount is taxed at the individual income tax rate of 14 to 45 percent, plus the solidarity surcharge. A gain of 900 euros remains tax-free, while a gain of 1'200 euros is fully taxable.
In March 2025, the Federal Ministry of Finance published important clarifications. The originally planned extension of the holding period to ten years for staking and lending was abandoned in April 2022. Staking rewards and mining income are subject to income tax, with an annual exemption threshold of 256 euros. Amounts exceeding this threshold are taxed at the individual’s personal tax rate.
Austria: Flat capital gains tax since 2024
Austria introduced a major change effective January 1, 2024: cryptocurrencies are now taxed like other capital investments at a flat capital gains tax rate of 27.5 percent. This rule applies regardless of the holding period and replaces the previous distinction between short- and long-term investments.
Austrian crypto platforms such as Bitpanda and Coinfinity withhold the tax automatically. When using foreign exchanges, investors must declare the gains themselves in their tax return. Loss offsetting is possible within the calendar year: crypto losses can be offset against gains from other capital investments such as equities, bonds, or derivatives.
A special feature concerns loss carryforwards. While private investors cannot carry losses forward to subsequent years, this is partially possible for business assets. From 2025 onward, the Federal Ministry of Finance requires all domestic service providers to provide detailed tax reporting upon request by the taxpayer. This significantly simplifies the preparation of the tax return.
Switzerland: Wealth tax instead of capital gains tax
Switzerland follows a fundamentally different approach from its neighboring countries. Private capital gains from cryptocurrencies are tax-free, provided there is no commercial trading activity. Instead, crypto holdings are subject to cantonal wealth tax, which ranges between approximately 0.3 and 1 percent of the asset value, depending on the place of residence.
The Swiss Federal Tax Administration publishes annual price lists with official valuations for common cryptocurrencies as of December 31. For tokens not listed, the market value on a recognized exchange applies. Cryptocurrencies must be declared in the securities register of the tax return, using the CHF equivalent at year-end.
The distinction between private asset management and commercial trading is critical. If the tax authority classifies the activity as commercial, profits are taxed at ordinary income tax rates of up to 40 percent and are additionally subject to social security (AHV) contributions. Relevant criteria include holding periods, transaction volume, and the use of borrowed capital. Staking and mining income is treated as taxable income and must be declared at market value in the year it is received. Most cantons treat mining as self-employed activity, meaning that income is subject to both income tax and AHV contributions.
Comparison table: Taxation by scenario
| Scenario | Germany | Austria | Switzerland |
|---|---|---|---|
| Buy and sell (holding period >1 year) | Tax-free | 27.5% CGT | Tax-free (wealth tax approx. 0.3-1%) |
| Trading (holding period <1 year) | 0-45% above €1,000 | 27.5% CGT | Tax-free or up to 40% (commercial) |
| Staking rewards | 0-45% above €256 | 27.5% CGT | Income tax (variable) |
| Mining | 0-45% above €256 | 27.5% CGT | Income tax and AHV |
| DeFi yields | 0-45% above €256 | 27.5% CGT | Income tax |
| NFT sale | 0-45% (1-year period) | 27.5% CGT | Tax-free (private) |
| Airdrops | Taxable if consideration is provided | 27.5% CGT | Income at market value |
| Hard forks | No taxation upon receipt | 27.5% CGT upon sale | No taxation upon receipt |
| Loss offsetting | Against other crypto gains | Against all capital income | Only if classified as commercial |
Common mistakes and how to avoid them
The most common mistake is failing to declare crypto assets. In all three countries, there is a declaration obligation even if no gains have been realized. In Switzerland, holdings must be declared regardless of transactions; in Germany and Austria, at least disposals within the relevant periods must be reported.
Confusing an exemption threshold with an allowance often leads to errors in Germany. If gains amount to 1'001 euros, the entire 1'001 euros are taxable, not just the excess amount. Many investors also underestimate documentation requirements: transaction histories should be retained for at least ten years, as tax authorities may assume an acquisition cost of zero if documentation is missing.
In Austria, the automatic withholding of capital gains tax by domestic exchanges is often overlooked. Those trading on Bitpanda do not need to declare already taxed gains again, but should still include them in the tax return to avoid follow-up questions. For foreign exchanges, self-declaration is mandatory.
Switzerland carries the risk of being classified as a commercial trader. Anyone executing more than five sales in a calendar year or holding assets for less than six months risks reclassification, with significant tax consequences. The use of leveraged products or borrowed capital is also considered an indicator of commercial trading.
Checklist for the 2025 tax return
For all three countries:
- Export complete transaction histories from all used exchanges
- Document wallet addresses and associated transactions
- Record staking, mining, and DeFi income with date and market value
- Note airdrops and hard forks with receipt date
- List fees and transaction costs separately
Germany-specific:
- Verify acquisition dates for the 1-year holding period
- Calculate gains and losses using the FIFO method
- Observe the 1'000 euro exemption threshold for short-term gains
- Declare staking/mining income above 256 euros as other income
- Complete Annex SO (other income)
Austria-specific:
- Check whether a domestic exchange has already withheld CGT
- Offset losses against other capital income
- Request tax reporting from domestic providers
- Declare foreign gains in the income tax return
- Use form E1kv
Switzerland-specific:
- Value crypto holdings as of December 31 (FTA price list)
- List them in the securities register
- Declare staking/mining income in the income declaration
- Assess commercial status based on the five criteria
- Observe cantonal specifics
Practical calculation examples
Example 1 – Buy and hold (Germany): An investor purchases Bitcoin on March 1, 2024 for 10'000 euros and sells it on April 1, 2025 for 15'000 euros. Profit: 5,000 euros. Since the holding period exceeds twelve months, the gain is completely tax-free.
Example 2 – Trading (Austria): An investor earns 8'000 euros in crypto trading profits in 2025 and simultaneously incurs a 3'000 euro loss from equity sales. The capital gains tax of 27.5 percent is calculated on the net gain of 5'000 euros, resulting in a tax burden of 1'375 euros.
Example 3 – Staking (Switzerland, Canton of Zurich): An investor receives staking rewards worth 5'000 CHF in 2025. These are taxed as income at the ordinary rate. At a marginal tax rate of 30 percent, income tax amounts to 1'500 CHF. In addition, the entire crypto portfolio is subject to wealth tax of approximately 0.5 percent.
Example 4 – Exemption threshold (Germany): A trader realizes a profit of 950 euros from crypto sales within eight months. Since this is below the 1'000 euro exemption threshold, no tax is due. Had the profit been 1'100 euros, taxes of 330 euros would apply at a personal tax rate of 30 percent.
Outlook: Regulatory developments
The EU directive DAC8 will significantly tighten reporting obligations for crypto service providers from 2026 onward. Exchanges will then be required to automatically report transaction data to tax authorities, similar to the existing system for bank accounts. This will also affect DeFi protocols and NFT marketplaces, making tax enforcement considerably more efficient.
Germany does not plan any fundamental changes to its existing system, but the digitalization of tax administration is progressing. Automated capture of crypto transactions is expected to make tax evasion substantially more difficult. Austria has already taken a major step toward simplification with the introduction of the flat capital gains tax in 2024.
Switzerland continues to discuss clarifying the criteria for commercial trading. Different cantons apply varying standards, which creates legal uncertainty. Greater harmonization would improve planning certainty for investors, while the general tax exemption for private capital gains remains a key location advantage.
