Starting in 2026, German tax authorities will apply the same rules to profits from selling memecoins as they do for other cryptocurrencies. This means coins like Dogecoin, Shiba Inu, Pepe, or Bonk are subject to taxation based on acquisition and sale dates, regardless of their market value or origin.
Key Tax Principles for Memecoin Sales
According to the Federal Ministry of Finance, cryptocurrencies held as private assets are classified as other economic goods. This covers major cryptocurrencies as well as smaller altcoins and memecoins. If an investor sells a memecoin for profit within one year of purchase, the gain is taxable under § 23 of the Income Tax Act as a private sale transaction.
Holding a memecoin for more than twelve months before selling generally exempts the profit from tax. For example, if an investor buys memecoins for 2,000 euros on January 10 and sells them on June 1 for 7,000 euros the same year, the 5,000 euro profit is taxable. If the sale occurred after one year, the gain would usually be tax-free.
Taxable events are not limited to sales for euros. Exchanging a memecoin for another cryptocurrency, such as Bitcoin, Ether, or stablecoins like USDT or USDC, also qualifies as a taxable disposal. Using memecoins to purchase goods or services triggers tax liability as well. For instance, swapping Dogecoin for USDT realizes profit at the time of exchange, even if the stablecoins remain on the exchange.
