Section 115BBH – Crypto Tax Insights

When dealing with Section 115BBH, a provision of the German Income Tax Act that defines tax‑free treatment for certain crypto holdings, also known as German crypto tax exemption, you’re really looking at a rule that can save traders a lot of money. It works hand‑in‑hand with Germany, the jurisdiction that enacted the rule and directly impacts popular assets like Bitcoin, the leading cryptocurrency often used to test tax rules. The core idea is simple: hold your crypto for a set period, and the profits become tax‑free under this section.

Why Section 115BBH matters for crypto investors

This provision isn’t just a legal footnote; it shapes real‑world decisions. First, the holding period—usually twelve months—means you can treat long‑term gains like any other capital asset, sidestepping the usual 25% German capital gains tax. Second, the rule ties into Section 23 EStG, the broader tax code governing private sales and speculative assets. If you sell before the period ends, Section 23 kicks in and taxes kick in too. Knowing both sections helps you plan buys, sells, and even airdrop receipts so you stay in the tax‑free zone.

Putting the rule into practice involves a few concrete steps. Start by tracking the exact date you acquire each token—wallet timestamps are your best friend. When the twelve‑month mark passes, you can record the transaction as tax‑exempt in your annual crypto tax filing, the process of reporting crypto gains and losses to the German tax authority. Make sure your total gains stay below the €600 threshold that triggers a filing requirement, or use the standard tax return forms if you cross it. For airdrops, treat the received token’s market value at the time of receipt as taxable income, unless you hold it long enough to qualify under the same exemption period.

Below you’ll find a curated list of articles that break down every angle of Section 115BBH. From detailed guides on Germany’s 12‑month exemption for Bitcoin holders to step‑by‑step filing tips, each piece gives you actionable insights you can apply right away. Whether you’re a casual holder or a trader juggling multiple assets, these resources will help you stay compliant and keep more of your crypto profits.