How to File Nexo Taxes in Germany?

This guide makes it simple to understand, calculate, file your Nexo taxes in Germany. It offers easy-to-follow steps to help you handle the process accurately and without any confusion.

How Can Catax Help You with Your Nexo Tax in Germany?

Crypto taxes in Germany can be tough to figure out, especially for Nexo users. Catax offers an easy way to sort out your taxes, avoid errors, and follow the rules without stress.

Ways Catax Makes Nexo Tax Filing Simple:

• Track Profits and Losses: Catax keeps a clear record of your Nexo trades and changes them into Euros for accurate tax reports.
• Sync Your Account Easily: Connect your Nexo account to Catax to pull in your trade data and get quick tax calculations.
• Follow Simple Steps: Catax provides clear instructions to link your Nexo account and create full tax reports.
• Use Free Tax Estimator: Germany’s free crypto tax calculator helps you figure out how much tax you might owe.

Does Nexo Share Tax Info with Germany’s Federal Tax Office (BZSt)?

No, Nexo does not send your tax data directly to the German Federal Central Tax Office (BZSt).

• You Must Report Your Profits: Nexo follows KYC rules and collects user data but doesn’t pass it on to the BZSt. You still need to report profits, staking rewards over €2,500 per year, airdrop income, and crypto used for purchases.
• Tax Office May Request Data: If the German tax office (Finanzamt) suspects tax evasion, they can ask for your Nexo transaction records. You must keep your records accurate.
• Get Your Transaction History from Nexo: Nexo lets users download their full trade history. This data can be used for manual tax filing or uploaded to Catax for faster results.

How Does the BZSt Use the Information Received from Nexo?

The German Federal Central Tax Office (BZSt) uses data from Nexo to make sure users follow tax rules, especially when it comes to profits from cryptocurrency transactions. While specific details about how the BZSt uses this data aren’t made public, it aligns with the global trend of tax authorities paying closer attention to digital assets. Nexo users in Germany should stay updated on BZSt guidelines and consider consulting crypto tax experts to avoid mistakes.

Can the BZSt Track Cryptocurrency Transactions?

Yes, the BZSt can trace crypto transactions using different tools and laws. Germany follows the Crypto Asset Transfer Ordinance, which enforces the FATF’s Travel Rule, requiring crypto platforms to ensure transaction traceability.

Germany also has clear tax rules for various crypto activities, such as:

• Trading
• Lending
• Staking
• Mining
• Receiving crypto as income

These rules help the BZSt monitor crypto usage and prevent tax evasion.

What Taxes Do I Owe for Using Nexo in Germany?

If you use Nexo for crypto trading, staking, or lending, you might owe taxes based on your earnings. The tax amount depends on:

• Holding period: Crypto held for more than a year may be tax-free when sold.
• Type of earnings: Interest from lending or rewards from staking are usually taxable.
• Personal tax situation: Your income level and other financial factors can affect how much you owe.

You must report all crypto transactions in your annual tax return. Failing to do so could result in penalties. To ensure proper reporting, it’s best to consult a tax professional familiar with crypto regulations in Germany.

Understanding Capital Gains Tax on Cryptocurrency in Germany

Cryptocurrency transactions in Germany are subject to capital gains tax, which depends on the holding period and trading frequency. Here’s a breakdown of how crypto gains are taxed:

Holding Period	Tax Rate
Less than 1 year	Taxed as personal income (up to 45% based on your income tax bracket).
More than 1 year	Tax-free up to €600 in annual gains. Beyond that, taxed between 0%–25% based on income.

Additional Considerations for Crypto Investors:

• Frequent Traders: If you trade regularly, your gains might be classified as business income, leading to higher tax rates.
• Staking & Lending Rewards: Earnings from staking or lending are usually taxable, even if the assets are held for over a year.
• Annual Tax Declaration: Every crypto transaction—whether it results in a gain or loss—must be reported in your yearly tax return.

For accurate reporting and to avoid penalties, it’s wise to consult a tax expert familiar with crypto regulations.

German Income Tax Brackets for 2025

In Germany, residents are taxed on their worldwide income, including crypto profits, while non-residents only pay taxes on income generated within Germany. The country uses a progressive tax system, meaning tax rates increase with higher income.

2025 Income Tax Brackets:

• Up to €11,604 – 0% (Tax-free threshold)
• €11,605 – €66,760 – 14% to 42% (Rising progressively)
• €66,761 – €277,825 – 42%
• Over €277,826 – 45% (Top tax rate)

Crypto-Specific Tax Rules:

• Short-Term Gains: Profits from selling crypto within 1 year are taxed based on the above brackets.
• Long-Term Gains: Crypto held for more than 1 year is tax-free (up to €600/year); profits beyond that are taxed depending on total income.
• Special Cases: Earnings from mining, staking, or airdrops may be taxed as income, not capital gai

Germany Tax Rate	Taxable Income Range for Single Taxpayers (EUR)	Taxable Income Range for Married Taxpayers (EUR)
0%	Less than 10,908	Less than 21,816
14% – 42%*	10,908 – 62,809	21,816 – 125,618
42%	62,809 – 277,825	125,618 – 555,650
45%	277,825 and greater	555,650 and greater

How to Reduce Your Nexo Crypto Tax in Germany

In Germany, there are several legal ways to reduce your crypto tax when using Nexo. One of the simplest methods is to hold your crypto for more than 12 months before selling it. If you do this, any profit you make becomes completely tax-free, regardless of the amount.

Another way to lower your tax is by using the country’s tax-free allowances. For example, if your total crypto profits in a year are €600 or less, you won’t owe any taxes. Similarly, income from mining or staking remains tax-free if it doesn’t exceed €256 annually.

If you’ve made losses from selling crypto at a lower price than you bought it, don’t ignore them. In Germany, you can use these losses to offset your taxable gains, effectively reducing the amount of tax you owe.

Gifting crypto can also help avoid taxes. In Germany, you can gift crypto to family members or your spouse without triggering taxes, as long as the gift’s value stays under certain limits. For spouses, this limit can be up to €500,000, and for other family members, it ranges from €20,000 to €400,000, depending on the relationship.

For those with significant crypto holdings, moving to a tax-friendly country could be an option. Countries like Portugal or Dubai offer zero tax on crypto gains. While relocating is a big step, it could be worth it for major investors.

Which Accounting Method Should I Use for Cryptocurrency in Germany?

In Germany, the commonly used method for calculating crypto taxes is FIFO (First-In-First-Out). This means that the coins you bought first are considered the ones you sell first when figuring out your taxes.

Why Filing Your Nexo Crypto Taxes in Germany Is Important

In Germany, failing to file taxes on your cryptocurrency transactions can result in serious consequences. The government applies specific tax rules to crypto assets, including those on Nexo, depending on how you handle the transactions and how long you hold the assets. Firstly, the way you buy, sell, or trade crypto directly affects your tax obligations. The holding period directly affects your tax obligations—if you hold assets for over a year, you may qualify for tax-free profits, but selling them within a year typically results in taxation. Ignoring these rules can lead to penalties, fines, or even legal action. Therefore, you must understand how crypto is taxed in Germany and follow the regulations to avoid potential issues.

Taxation of Cryptocurrency Transactions

• Short-Term vs. Long-Term Holdings: If you sell crypto after holding it for more than one year, the profit is tax-free. However, if you sell it within a year, the gains are taxed as part of your regular income, and the rate depends on your income tax bracket.
• Mining, Staking, and Lending: Income earned from mining, staking, or lending on Nexo is taxed as regular income. Expenses related to mining can be deducted, but if mining is done as a business, additional taxes may apply.
• Using Crypto for Purchases: If you use crypto to buy goods or services within a year of acquiring it, the profit is taxed. But if you hold the crypto for over a year before spending it, the transaction is tax-free.
• Thresholds and Exemptions: Small profits from crypto trading, up to €600 per year, are exempt from taxes. Additionally, gifting crypto to family or friends can be tax-free up to specific limits.

Ignoring these rules can result in penalties, interest charges, or even legal issues. That’s why careful tax planning is necessary.

Simple Tips for Nexo Users to Handle Crypto Taxes in Germany

• Know Your Tax Responsibilities: Learn how Germany taxes crypto, including the rules for different types of income like trading, staking, or lending.
• Keep Accurate Records: Maintain clear records of every transaction on Nexo—this includes purchases, sales, staking rewards, and transfers.
• Use a Crypto Tax Tool: Catax helps track your Nexo transactions, calculate gains and losses, and create reports that fit Germany’s tax requirements.
• Think About Holding Periods: Selling crypto after holding it for over a year makes the profit tax-free. If sold earlier, the gains are taxed based on your income bracket.
• Pay Attention to Tax-Free Limits: Remember that gains under €600 per year may be tax-free. Knowing these limits can help reduce your tax bill.
• Stay Updated on Tax Laws: Germany’s crypto tax laws can change, so it’s important to stay informed to avoid penalties and unexpected costs.

How Is Staking Taxed in Germany?

In Germany, rewards earned from staking are treated as taxable income when received. If you sell or trade these staking rewards within 12 months of receiving them, any profit is subject to capital gains tax, based on the price difference between when you received the rewards and when you sold them. However, if you hold the staking rewards for over a year before selling, the profits can be tax-free.

How Are Airdrops Taxed in Germany?

Airdrops can be taxable or non-taxable, depending on how you received them.

• If you actively participated in the airdrop (for example, by paying gas fees or sharing a social media post), the airdrop is considered taxable income when received.
• If the airdrop was given without any action on your part, it is considered non-taxable when received.

However, if you sell or trade the airdropped tokens within 12 months, any profit is subject to capital gains tax.

How Are Hard Forks Taxed in Germany?

When a hard fork happens, the blockchain splits, and holders may receive new tokens (like during the Bitcoin Cash hard fork in 2017).

• The new tokens received from a hard fork are not taxed when you receive them.
• If you sell the new tokens within 12 months, any profit is subject to capital gains tax.
• Selling after holding for more than a year may make the sale tax-free.

How Are NFTs Taxed in Germany?

While Germany hasn’t issued specific tax rules for NFTs, they are likely treated similarly to cryptocurrencies.

• Buying NFTs with Crypto: This is treated as a taxable event if the crypto used was held for less than 12 months.
• Selling or Trading NFTs:
  • Sold within 12 months → Taxable as income.
  • Held over 12 months → Tax-free.
• Minting NFTs: If you create and sell NFTs, any income from the sales is taxed as income.

Example:
Luca buys an NFT for €500 and later sells it for €2,000, earning a €1,500 profit. If sold within 12 months, this gain is taxable.

How Is DeFi Taxed in Germany?

The German government hasn’t provided clear guidance on DeFi yet, but existing tax rules likely apply:

• Any crypto earned through DeFi platforms (e.g., lending, staking) is treated as income.
• Selling or trading assets within 12 months is subject to capital gains tax.
• Holding for over a year can make profits tax-free.

How Are Stablecoins Taxed in Germany?

Stablecoins are taxed just like other cryptocurrencies.

• Selling or trading stablecoins within 12 months is taxable, though gains are usually small due to price stability.
• Holding stablecoins for over a year before selling could make profits tax-free.

How Are Cryptocurrency Gifts Taxed in Germany?

Gifting crypto can be tax-free if the value stays within certain limits:

• €20,000 tax-free for gifts to friends.
• €500,000 tax-free for gifts to spouses.

If the gift exceeds these limits, gift tax applies, ranging from 7% to 50%, depending on the relationship and the gift amount.

What Records Should I Keep for Crypto Taxes in Germany?

To stay compliant, it’s essential to maintain detailed records of all your crypto transactions for at least 5 years. Keep track of:

• Dates of buying, selling, or receiving crypto.
• Fair market value in Euros at the time of each transaction.
• The purpose of the transaction and details of the other party (even just a wallet address).

How Can I Track My Crypto Taxes Easily?

Manually tracking every crypto transaction can be overwhelming, especially if you use multiple wallets or platforms like Nexo.

Catax makes crypto tax reporting simple by:

• Automatically importing your transactions from Nexo, wallets, and other exchanges.
• Calculating profits, losses, and staking rewards according to German tax laws.
• Generating tax-ready reports that save time and reduce errors.

How Are ICOs & IEOs Taxed in Germany?

In Germany, buying into ICOs (Initial Coin Offerings) and IEOs (Initial Exchange Offerings) is treated similarly to regular crypto trading for tax purposes. The key is to compare the purchase price and the selling price to determine your profit or loss.

Here’s how the tax rules apply:

• Tax-Free After 1 Year: If you hold your tokens for more than 12 months before selling, any profit made is tax-free.
• Taxable Within 1 Year: If you sell the tokens within 365 days of purchase and make a profit of more than €1,000, the gain is subject to income tax.
• Tax Rate: Profits from ICOs and IEOs can be taxed at rates ranging from 0% to 45%, depending on your total annual income.

How Catax helps you to calculate your Nexo Taxes?

How Catax Simplifies Nexo Tax Filing:

• Clear Profit and Loss Tracking: Catax helps you record your Nexo trades and converts them into Euros for accurate tax reporting.
• Quick Account Sync: Easily link your Nexo account to Catax, so it can collect your trading data and handle tax calculations for you.
• Step-by-Step Guidance: Follow simple instructions to connect your Nexo account and get complete tax reports.
• Free Tax Estimator: Use Germany’s free crypto tax calculator to get an estimate of your tax amount based on your trades.

Crypto taxes in Germany can be tough to figure out, especially for Nexo users. Catax offers an easy way to sort out your taxes, avoid errors, and follow the rules without stress.

1. Log in to your Nexo account, go to Transactions > Export, select all transactions, and download the CSV file.
   For more Detail : How to Export transaction History?
2. Log in to Catax, select Nexo, and upload your CSV file.
3. Catax will process your data and generate a detailed tax report.
4. Use the report to file your taxes or share it with your tax advisor for easy and accurate tax filing.