As mining becomes more professional, the tax side is no longer something you can ignore. For miners in Germany, Austria and Switzerland (the DACH region), the key questions are:

• How is mining income taxed?

• Can I deduct electricity and hardware?

• What’s different for companies vs private individuals?

Below is a high-level overview based on current guidance as of 2025 – with links and sources so you (and your tax advisor) can dig deeper. This is not tax advice, but a starting point.

1. General Patterns: How Tax Authorities See Mining

Across DACH, a few common themes show up:

• Mining creates taxable income, not “free coins”.

• If you mine on a commercial scale or with profit intent, earnings are often treated as business income.

• Hardware, electricity and hosting can usually be treated as business expenses, reducing taxable profit, if you’re classified as a commercial miner.

• Private “hobby” mining may be taxed differently (or be hard to argue as non-commercial if there’s real scale).

Kryptoberg’s model with clear contracts, client-owned hardware, and transparent hosting invoices — is designed to make this classification and documentation easier, not harder. Let’s break it down by country.

2. Germany: BMF Guidance 2025 and Mining as Business Income

In March 2025, the German Federal Ministry of Finance (BMF) issued an updated letter on the income tax treatment of crypto-assets, replacing its 2022 guidance. Key points relevant for miners:

• Crypto-related income (including mining) is assessed under general income tax rules.

• Mining that is carried out on a continuous, profit-oriented basis is typically treated as commercial income (Gewerbebetrieb).

• For private individuals, trading gains on Bitcoin and other “private assets” remain tax-free after a one-year holding period, with a €1,000 tax-free allowance for shorter holding periods from 2024 onwards.

  
  

What this means in practice:

• If you run ASICs at scale (especially in a hosting setup) with profit intent, the tax office will likely see you as running a business.

• In that case:

  
  

  • Mining income is taxed at your personal or corporate income tax rate.

  • Electricity, hosting and depreciation on hardware can usually be claimed as business expenses.

  
  

For Kryptoberg clients in Germany, this is where good paperwork matters:

• Hardware purchase contracts,

• clear hosting invoices,

• payout reports in BTC and EUR,

  give your tax advisor exactly what they need to treat mining properly in your accounts.

3. Austria: 27.5% Flat Tax and Deductible Mining Costs

Austria reformed its crypto tax rules in March 2022. Crypto is now explicitly treated as income from capital assets, generally taxed at a flat 27.5% rate (Kapitalertragsteuer). Important points:

• Gains from selling or swapping crypto are usually taxed at 27.5% (for “new” holdings acquired after 28.02.2021).

• Crypto income from mining or lending is also taxed at 27.5% at the time of receipt if held as private capital assets.

• If your mining activity qualifies as a business (Gewerbebetrieb), income falls under progressive income tax (up to 55%), but:

  
  

  • Electricity, hosting and hardware depreciation can be recognised as business expenses, reducing the taxable base.

    
    

So for Austrian miners, there are essentially two routes:

• Private capital income at 27.5% flat, with limited expense treatment; or

• Business income, with higher possible rates but full deductibility of mining costs.

  
  

Again, Kryptoberg cannot decide your classification — but it can provide clean cost documentation (hosting, power, hardware) so your tax advisor can structure things in line with Austrian rules.

4. Switzerland: Income vs Wealth Tax and “Professional” Mining

Switzerland takes a somewhat different approach:

• For private investors, cryptocurrencies such as Bitcoin are typically treated like foreign currencies / movable assets:

  
  

  • Capital gains are generally tax-free.

  • Crypto holdings are subject to wealth tax at year-end valuations.

  
  

• For professional traders or miners, the story changes:

  
  

  • Mining income can be classified as self-employed / business income.

  • That income is subject to income tax and social security, but:

    
    

    • mining expenses (hardware, electricity, hosting) can be deducted as business costs.

    
    

The Swiss Federal Tax Administration has issued practice notes clarifying how payment tokens, mining and staking should be treated under existing law rather than a new “crypto tax code”. For a Swiss company or larger individual miner using Kryptoberg:

• You are likely considered commercial if the activity is organised and profit-oriented.

• You can then:

  
  

  • depreciate mining hardware,

  • deduct hosting and electricity costs,

  • and account for mined BTC as self-produced assets on your balance sheet.

  
  

5. What This Means for Kryptoberg Clients in DACH

Across Germany, Austria and Switzerland, three patterns matter:

1. Mining is real income.

   Authorities do not see mined BTC as “magic internet money” – they treat it as taxable income or business revenue.

2. Structure matters.

   
   

   • If you mine casually at home, classification is often messy.

   • If you mine through a structured setup with:

     
     

     • clear contracts,

     • invoices for power and hosting,

     • and transparent payout reports,

       your tax advisor can much more easily fit it into existing frameworks.

   
   

3. Businesses may be better positioned than individuals.

   
   

   • Companies can often depreciate hardware and deduct running costs,

   • while treating mined BTC as part of a strategic treasury or as inventory, depending on their business model.

   
   

Kryptoberg is explicitly designed for that world:

• You own or co-own the hardware (full or fractional ASICs).

• We provide professional hosting in low-cost locations, with realistic all-in kWh pricing.

• You receive regular BTC payouts for Bitcoin setups, plus the documentation to prove where they came from.

  
  

The result isn’t “tax magic”, but something finance teams understand:

Capex for hardware, opex for hosting and electricity, and a stream of mined BTC as output — all inside the existing DACH tax systems.

Always confirm the details with a qualified tax advisor in your country. The rules are evolving, but the direction is clear: mining is fully on the radar and can be integrated cleanly into serious financial planning if you treat it like what it is: a business.