German tax knowledge

FIFO or LIFO: which method applies to crypto in Germany?

Last reviewed: August 15, 2026

For private crypto disposals in Germany, FIFO is the usual method described by the Ministry of Finance: the earliest acquired lot is treated as sold first. LIFO and moving average produce different gains and different holding periods. Without complete purchases and cost basis, no method produces a reliable result.

The facts in brief
Germany	FIFO is the usual method
LIFO	Not the default method
Austria	Moving average

What does FIFO mean in practice?

First in, first out. If you sell 0.5 BTC, the calculation takes the oldest remaining BTC lot. That decides the gain and whether the one-year period has already run. The history therefore cannot start in the year of the sale.

When do LIFO and average cost appear?

LIFO (last in, first out) can shift the gain, but it is not the standard method for private German crypto disposals. Moving average is common in Austria. Changing the method changes gain and holding period for the same trade. It must match the tax region.

Why does the method fail when data is incomplete?

FIFO needs an ordered inventory. If a purchase is missing, a later sale often gets cost basis zero. A negative balance means more was sold than was ever imported. Then the lot is invented. That is what CoinTracking warnings and Blockpit hints show — not a broken FIFO toggle.

Sources

Section 23 EStG — private disposals German Ministry of Finance letter of 10 May 2022 — virtual currencies

Frequently asked questions

Can I choose LIFO in Germany because it creates less tax?

Not at will. The method must match the statutory valuation. A lower gain alone is not a reason to switch.

What if I hold the same coin on several exchanges?

Economically the taxpayer matters, not the exchange. In practice you must import every depot, otherwise FIFO runs on a subset of lots.

Does changing the method fix missing prices?

No. Without cost basis the gain stays distorted, whether you use FIFO or LIFO.