Nano (XNO) and the German holding period: savings wallet and everyday wallet

If you hold Nano (XNO) privately for more than one year and then sell, swap or spend it, the gain is not taxed in Germany (§ 23(1) sentence 1 no. 2 EStG). Within one year a gain is taxable – unless it stays below the exemption limit.

Spending counts like selling: paying with XNO is a “disposal”.

The German Federal Ministry of Finance letter of 6 March 2025 on crypto assets sets out (paraphrased):

• Para. 61 – FIFO: units acquired first are treated as disposed of first (“first in, first out”).
• Para. 62 – per wallet: the order is applied to each wallet separately. A payment out of wallet B only uses holdings of wallet B – never the older holdings of wallet A.
• Para. 19 – any number of wallets: you may keep as many wallets (addresses) as you like.

So: if you spread your Nano across several wallets, the wallet you pay from decides which lots you spend.

Since 2024, gains from private disposals stay tax-free if the total gain in the calendar year is less than €1,000 (until 2023: €600). The limit applies to all private disposals together – not only Nano.

Limit ≠ allowance: with a total gain of €999 everything is tax-free. At €1,000 or more the entire gain is taxable – not just the part above €1,000.

Sending Nano from your wallet A to your wallet B is not a disposal. Acquisition date and cost basis move along, the holding period continues. Note: transfers follow FIFO too – from a mixed wallet the oldest lots move first.

The easiest way is to separate when you receive: what you want to hold long-term goes straight to the savings wallet; what you want to spend goes to the everyday wallet.

1. Buy and lock away: You buy 1,000 Ӿ and put them in a separate savings wallet. They stay there – at least one year.
2. Buy more every month: another 200 Ӿ go into the everyday wallet.
3. Use it while in profit: if the Nano in the everyday wallet are in total in profit, you use them. Their holding period is still under one year, so the gain is taxable – but it usually stays below the €1,000 exemption limit per year. NanoTracker shows the total of this year’s gains against that limit.
4. After one year: the first 1,000 Ӿ have been held for a year. If they are in profit, move them to the everyday wallet (a transfer is not a sale, the holding period keeps running) and use them – the gain is tax-free.

Why two wallets? If all Nano sat in one wallet, FIFO would spend the oldest first – the 1,000 Ӿ, before they have been held for a year. Keeping them apart lets you decide which lots may run into the holding period.

Once the €1,000 exemption limit per year is reached, the entire gain of that year is taxable. NanoTracker then shows: “Exemption limit exceeded – all gains of this year are taxable, do not spend any more Nano that has not reached its holding period.” Applies to private assets in Germany; not tax advice.

11 months ago you acquired 1,000 XNO at €0.80, last week 1,000 XNO at €1.20. Today XNO is at €1.20. You want to spend 1,000 XNO (worth €1,200).

Same amount, same day – the only difference is the wallet you pay from. Had the old XNO already been held for more than a year, FIFO in one wallet would be harmless: the old lots would be tax-free anyway.

This is how Johannes of feeless.money handles it for himself – as a personal approach, not a recommendation:

• Use what is in profit: spend lots that are in profit compared with their incoming price.
• Hold what is at a loss: do not spend lots that are at a loss – hold them.
• Buy more: top up when there is an opportunity. That makes Nano practical for daily life, and you keep saving along the way.

NanoTracker shows the gain or loss for every single lot – so you can see it.

If you want to park amounts at a stable value or pay in a fixed currency day to day, a Nano-based stablecoin such as NanUSD can be used for that. NanUSD via NanswapAdvertising / affiliate link

Currently usable only with the NanChat wallet (nanchat.com) – recommended.

Note: swapping XNO into a stablecoin is also a disposal (swap) for German tax purposes. Holding period and exemption limit apply in the same way.

• Set the category of your wallets: PRIVATE – e.g. one savings wallet and one everyday wallet, both PRIVATE.
• For every lot: date received, price then, gain/loss today, tax-free from.
• Exemption limit per year across all private wallets.
• Transfers between your own wallets are recognised (Pro); the acquisition date moves along.
• Moves between PRIVATE and BUSINESS are clearly marked: tax law changes there (contribution/withdrawal) – please clarify with a tax advisor.

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Not tax advice. Please check the rules in your own country. Short overview only for countries whose rule is backed by a source in our research.