German tax authorities treat memecoins exactly like Bitcoin or Ether, and that will remain the case going into 2026. The Federal Ministry of Finance classifies all cryptocurrencies held in private assets as "other economic goods," which covers Dogecoin, Shiba Inu, Pepe, Bonk and any other coin regardless of market cap or whether it started as an internet joke.
The key variable is time. Sell within twelve months of purchase and the profit falls under § 23 of the Income Tax Act as a private sale transaction, making it fully taxable. Hold for more than a year and the gain is generally tax-free under current law. A concrete example: buying memecoins for 2,000 euros on January 10 and selling them for 7,000 euros on June 1 of the same year produces a 5,000-euro taxable profit, because only about five months passed between the two transactions.
Swaps Count as Sales Too
A lot of investors assume taxes only kick in when money hits their bank account. That's wrong. The Ministry of Finance treats exchanging one cryptocurrency for another as a taxable disposal, the same as selling for euros. So if someone trades Dogecoin for USDT at a profit, that profit is realized at the moment of the swap, even if the stablecoins never leave the exchange. The same logic applies to trading a memecoin for Bitcoin, Ether, or any other token, and also to spending it on goods or services.
What the coin is called, how it was marketed, or whether it was listed on a centralized or decentralized platform makes no difference to the tax outcome. Acquisition date, sale date, and total profit realized are the figures that matter.
This article is for informational purposes only and does not constitute financial or tax advice. Consult a qualified tax professional for guidance specific to your situation.
