German tax knowledge

How is crypto lending interest taxed in Germany?

Last reviewed: August 15, 2026
Interest and rewards from lending crypto are generally income in Germany when they accrue, often as other income. The lent inventory itself is not a sale if you remain the beneficial owner. The interest coins take market value as cost basis. Mixing loan, interest and repayment creates fake sales or cost basis zero.
The facts in brief
InterestIncome at the inflow date
Loan of coinsUsually not a sale
Receipt tokenCan be an exchange

Is lending a disposal?

If you only hand over the coins and keep a claim for return, the handover is generally not a sale. As soon as the protocol gives you a different token (cToken, aToken, receipt), an exchange may have occurred. The economic substance decides, not the hash.

How do you book the interest?

Every interest inflow needs a date, an asset and a price. Compounded interest is still an inflow once you can dispose of it. A yearly lump sum without individual movements rarely survives a review.

Where do imports break?

Nexo, Celsius successors and on-chain lending often export interest as a trade or as a stake. Card payments are missing. In CleanUp you separate interest, repayment and spend instead of taking the raw CSV type.

Frequently asked questions

Is lending interest capital income?

The Ministry of Finance treats many crypto-lending yields as other income, not automatically as withholding-tax capital income. Check with a tax advisor if unsure.

Does lending extend the holding period of the lent coins?

According to the Ministry of Finance, use for income generation can affect the period. The law is not finally settled. Document the principal separately.

What if the platform fails?

Uncollectible claims can be a loss. That does not replace a clean split of inventory and interest beforehand.

Read next

This guide structures the data issues and common German administrative practice. It is not tax advice. The assessment in your case stays with you and your tax advisor.

Book interest as an inflow, not as a trade

Classify lending movements in CleanUp. Then the lent inventory stays put and only the interest becomes an inflow.

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