Crypto and ETFs in your studies are a popular first step into investing. For tax purposes, however, Germany treats the two very differently, and many students only notice this when they file their tax return. This guide explains the rules for 2026 in plain language, with examples and deadlines. If you are just getting started, read our introduction to investing as a student first.
Short answer: Crypto sales within one year of purchase are taxable once your gains in the calendar year exceed 1,000 euros. ETF income is generally subject to the 25 percent flat tax (Abgeltungsteuer). The saver allowance (Sparer-Pauschbetrag) of 1,000 euros per year, or 2,000 euros for joint assessment, keeps capital income tax-free. Last updated: October 2026.
The most important points at a glance
- ETFs are investment funds. Distributions and sales are taxed under the German flat tax on capital income, not under the speculation rules.
- The saver allowance is 1,000 euros per person and 2,000 euros for married couples assessed jointly (section 20 subsection 9 of the Income Tax Act, EStG).
- Crypto assets are taxed under section 23 EStG. Sales more than one year after purchase are generally tax-free.
- For crypto sales within one year of purchase, a 1,000 euro exemption limit applies per calendar year. If it is exceeded, the entire gain is taxable.
- Even if your bank does not deduct any tax, taxable crypto gains must be declared in your tax return.
How are ETFs taxed for students?
ETFs are investment funds, and the German Investment Tax Act (InvStG) applies to them. Distributions and gains from selling fund units are generally subject to the 25 percent flat tax, plus solidarity surcharge and church tax where applicable. For equity funds that hold more than half of their assets in shares, part of the income remains tax-free (partial exemption). Accumulating ETFs that do not distribute are subject to the advance lump sum tax (Vorabpauschale), an annual tax on a notional return that is due even if you do not sell. Its amount depends on the base rate published each year by the Federal Ministry of Finance, so we do not quote a figure here.
| Rule | Value (2026) | Legal basis |
|---|---|---|
| Flat tax on capital income | 25 percent, plus solidarity surcharge and church tax where applicable | Section 32d EStG |
| Saver allowance | 1,000 euros single, 2,000 euros joint assessment | Section 20 subsection 9 EStG |
| Partial exemption for equity funds | 30 percent of the income remains tax-free | Section 20 InvStG |
| Speculation period for crypto | one year between purchase and sale | Section 23 subsection 1 EStG |
| Exemption limit for private gains | 1,000 euros per calendar year | Section 23 subsection 3 EStG |
Example: distributions below the allowance
Assumption: in 2026 you receive 600 euros in distributions from an ETF and no other capital income. The saver allowance of 1,000 euros fully covers this amount. If you have submitted an exemption order (Freistellungsauftrag) to your bank, the bank deducts no tax. If you have not, the bank withholds the flat tax, and you can reclaim it in your tax return via the capital income form (Anlage KAP). The exemption order is therefore the simplest option when your income stays within the allowance.
How does tax on crypto work?
For private individuals, crypto assets such as Bitcoin or Ether count as private sales transactions under section 23 EStG. The holding period is what matters. If more than twelve months lie between purchase and sale, the gain remains tax-free. If you sell within that period, the exemption limit of 1,000 euros per calendar year applies to all private gains from such transactions. Losses from these sales can only be offset against gains from similar transactions (section 23 subsection 3 EStG). The timing of the sale is therefore often more important than the amount of the gain.
Assumption: you buy Bitcoin for 2,000 euros in March 2026 and sell it for 3,300 euros in October 2026. The gain of 1,300 euros exceeds the exemption limit, so the entire gain is taxable. If you had waited until April 2027, the sale would have been after more than twelve months and tax-free. In this example, the timing of the sale alone decides whether the gain is taxable.
What applies to staking, interest and airdrops?
Income from staking, lending or airdrops is not treated like a pure price gain. The Federal Ministry of Finance has published guidance on crypto assets that leads to different results depending on how the offer is structured. Whether such income is taxable, and when, depends on the specific arrangement. Before you declare this income, ask your tax office or a tax adviser.
How do you declare crypto and ETFs in your tax return?
- Collect the tax certificates from your bank for interest, dividends and fund income.
- Enter capital income and distributions in the capital income form (Anlage KAP). For funds, the bank can usually provide the required figures.
- Enter private crypto sales with purchase date, sale date, purchase price and sale price in the form for other income (Anlage SO).
- Keep statements from exchanges and wallets. The tax office can ask for them.
The filing deadline for the 2026 tax return without a tax adviser ends on 2 August 2027. The standard date, 31 July 2027, is a Saturday, so the deadline moves to the next working day (section 149 subsection 2 of the Fiscal Code, AO). With a tax adviser, a later deadline applies. You can read more in our guide to tax returns for students.
Frequently asked questions
Do I have to pay tax on ETF gains if I do not sell?
With distributing ETFs, the tax is due when the distribution is paid. With accumulating ETFs, the advance lump sum tax can be due every year, even without a sale. Your bank usually settles it if it holds your fund deposit. Whether it applies, and how much, depends on the base rate for that year.
Does the saver allowance also apply to crypto?
No. The saver allowance covers capital income such as interest, dividends and fund income. Gains from private crypto sales fall under section 23 EStG and their own exemption limit of 1,000 euros per calendar year. Both rules can apply in the same year.
Do I have to declare crypto gains if the platform is based abroad?
Yes. Where the platform is based does not change your tax liability. What matters is that you are subject to German income tax. You must therefore declare taxable gains even if the platform provides no German-language statement.
Can I offset crypto losses against ETF gains?
Not directly. Losses from crypto sales can only be offset against gains from similar sales (section 23 subsection 3 EStG). Losses from fund investments run through the loss offset account of the bank or the capital income form. The two areas should be considered separately.
Do I need a tax return if my income is small?
If your capital income stays below the saver allowance and you have submitted an exemption order, usually no flat tax is due. Whether you still have to file depends on a request from the tax office and your other income. If you are unsure, ask the tax office.
What to do now
- Check with your bank whether an exemption order is in place, and adjust it to your expected income.
- Keep a table of every crypto purchase and sale, with date, amount and fees.
- Find out whether your ETFs distribute or accumulate, so you can estimate the tax effects.
- Clarify staking income and other crypto income with the tax office or a tax adviser before you file.
Related guides
- ETF savings plan for students: step by step
- Taxes for students: when you pay and when you do not
- Tax return for students: how to get your money back
- Tax benefits for students in Germany: what you can claim
- Crypto and ETFs as a Student: Taxes Explained
Sources: Section 20 EStG, capital income (status 2026), Section 23 EStG, private sales transactions (status 2026), Section 32d EStG, flat tax (status 2026), Section 20 InvStG, partial exemption (status 2026), Federal Ministry of Finance, guidance on crypto assets (status 2026).
Last updated: October 2026. This guide is general information, not individual advice.
