Selling Memecoins: These Tax Rules Apply in Germany as of 2026

Memecoins Sold for Profit: What Tax Rules Apply to Small Coins

Memecoins like Dogecoin, Shiba Inu, Pepe, or Bonk can experience significant price fluctuations in a short period. Those who invest early and sell after a strong increase may achieve a high profit. However, the same tax rules that apply to more well-known cryptocurrencies generally apply to memecoins as well.

It does not matter whether a coin has a high market value, is only trending for a short time, or was originally created as an internet joke. What matters most are the acquisition date, the sale date, and the total profit realized.

Memecoins are Taxed as Cryptocurrencies

The Federal Ministry of Finance treats cryptocurrencies in private assets as so-called other economic goods. This includes not only Bitcoin and Ether but also smaller altcoins and memecoins.

If an individual sells a memecoin for a profit within one year of purchase, it may be considered a private sale transaction under § 23 of the Income Tax Act. The tax name or technical design of the coin is usually less important than whether it was acquired and later sold.

Therefore, the basic tax rules also apply to coins that have a low market capitalization or are t...