From January 1, 2026, crypto exchanges and other crypto asset service providers operating in Germany are required by law to report your transactions to the German tax authority. If you live outside Germany, that data gets shared with your home country’s tax office automatically.
What is the CARF Initiative?
Germany ratified the Multilateral Competent Authority Agreement on the Crypto-Asset Reporting Framework (CARF MCAA). It is an international tax information-sharing treaty developed by the OECD. The ratifying law is called the Kryptowerte-Steuertransparenzgesetz (KStTG) or Crypto-Asset Tax Transparency Act.
The KStTG also implements the EU’s Eighth Directive on Administrative Cooperation (DAC8). DAC8 applies the same reporting obligations across all EU member states.
Germany signed the CARF MCAA on November 26, 2024. The German Cabinet approved the ratifying legislation on May 27, 2026.
NOTE: The law takes effect from January 1, 2026 for the reporting obligation. The first actual data exchange will take place in January 2027, covering the 2026 calendar year.
Who has to report your crypto data?
Crypto asset service providers (CASPs) must report your crypto data to the Federal Central Tax Office (Bundeszentralamt für Steuern, or BZSt). These providers include exchanges, trading platforms, and certain wallet providers. They must report no later than January 31 each year.
The BZSt then sends the data to partner tax authorities in other countries under the CARF MCAA agreement.
What crypto data gets reported?
The information your exchange must send to the BZSt includes:
- Your name, date of birth, and tax residence
- Your tax identification number (Steueridentifikationsnummer) in your country of residence
- The type and quantity of crypto assets you hold and transact
- Transaction values in euros
- Whether transactions involved crypto-to-crypto, crypto-to-fiat, or transfers to other wallets
This applies to all major crypto assets. That includes Bitcoin, Ethereum, stablecoins, and most tokens traded on regulated exchanges.
How can the CARF initiative affect you?
If you are a tax resident in Germany, your crypto exchange data goes to the BZSt. Germany’s tax office will use it to cross-check what you declared on your annual income tax return (Einkommensteuererklärung). Undeclared gains from crypto sales have always been taxable in Germany. They will now be far easier for authorities to detect.
Crypto gains from assets held for more than one year remain tax-free in Germany. Gains from assets sold within 12 months of purchase are taxed as regular income. The new reporting regime does not change these rules. It just makes enforcement more effective.
WARNING: If you have crypto gains from 2021–2025 that you did not declare, you are exposed. Tax authorities have been known to send voluntary disclosure invitations (Selbstanzeige) as data sharing improves. Speaking with a tax advisor before the first data exchange in January 2027 is advisable.
If you previously lived in Germany and still hold accounts at German-regulated exchanges, those platforms will report your transactions to the BZSt. The BZSt will share that data with the tax authority of your current country of residence. They will receive information on your crypto activity even if you have no other financial ties to Germany.
What You Should Do
- Check whether your exchange is regulated in Germany or holds a German license. If it does, it falls under this reporting obligation.
- Make sure your country of tax residence is correctly recorded with your exchange. Exchanges are required to collect and verify this data.
- Declare crypto gains on your tax return for 2026 and beyond. The data will reach tax authorities regardless of whether you report it.
- Consult a tax advisor if you have complex crypto activity. Staking rewards, DeFi transactions, and NFTs fall under CARF. The BZSt has not yet finalized guidance on how each is treated.
