Bitcoin and Cryptocurrencies at the Notary
Bitcoin, Ether and other crypto assets have become part of everyday economic life – as investments, in company formations, or as part of a digital estate. Many of the legal questions they raise touch the field of notarial practice in Germany.
- Gifts & transfers of crypto assets – structured with taxes in mind
- Digital estate – wills, inheritance contracts and wallet access for heirs
- Company formation in blockchain, crypto and digital innovation
The one-year holding period for Bitcoin is set to fall
Anyone holding Bitcoin for more than one year can currently realise gains tax-free. Under the government's plans, this exemption is to be abolished from 2027 – every capital gain would then be taxable regardless of the holding period. Current law still applies. Anyone planning transfers, gifts or succession should know the window that is still open and set up the structuring early.
Crypto Assets and Notarial Practice
Digital assets such as Bitcoin, Ether or other token-based assets raise notarial questions in many life situations. The overview shows where notarisation or certification is required or advisable.
In my notarial practice I draft and notarise gift agreements over crypto assets, particularly Bitcoin, in favour of descendants or third parties. The structure typically aims to make systematic use of the gift-tax allowances of sec. 16 ErbStG – EUR 400,000 per child and parent, renewed every ten years (sec. 14 ErbStG) – so the transfer is as tax-free as possible.
At the same time, the structure ensures the recipient owes no income tax on later appreciation. To protect the donor, a reserved right of realisation can be agreed, and a promise to give requires notarisation (sec. 518 (1) BGB).
Where property abroad is sold wholly or partly for cryptocurrency, the drafting challenge lies in the settlement terms: timing of performance, exchange-rate risk and proof of payment must reflect how blockchain transactions work. For German real estate, note that since April 2023 the consideration may no longer be paid in crypto assets (sec. 16a GwG).
Marriage contracts (sec. 1410 BGB) should also contain clear rules on digital assets – valuation, disclosure and division in the equalisation of gains.
Unlike bank balances, Bitcoin and other cryptocurrencies usually have no intermediary who grants heirs access. Without the private keys or seed phrases, the assets are effectively lost for good – whatever the legal position.
A notarial will (sec. 2232 BGB) or inheritance contract (sec. 2276 BGB) provides the most reliable framework: allocation of crypto assets to heirs or legatees, reference to a secure custody system for access data, appointment of a technically knowledgeable executor.
Incorporating a GmbH or UG requires notarisation of the articles (sec. 2 (1) GmbHG); for the AG, sec. 23 (1) AktG applies. Crypto businesses raise particular questions about the business purpose, contributions of crypto assets in kind (sec. 5 (4) GmbHG) and regulatory classification (KWG, MiCAR).
Commercial register filings demand care: courts examine whether the business purpose is sufficiently specific. Certain incorporations can be completed online (sec. 16a BeurkG).
Not only death – serious illness or legal incapacity can also make crypto assets inaccessible. A notarised lasting power of attorney (sec. 1820 BGB) should expressly cover accessing digital assets, managing wallets, selling holdings and receiving access data.
A custodianship directive naming a technically knowledgeable person is a sensible complement.
In certain situations, notarial custody of documents (secs. 57 et seq. BeurkG) becomes relevant for crypto assets – escrow structures in company transactions, or depositing documents that enable wallet access.
Legal structuring must be flanked by secure yet accessible key custody: sealed envelope with the seed phrase, multi-level schemes, multi-signature wallets or hardware wallets with documented storage.
Notarial fees are set uniformly throughout Germany by the Court and Notary Fees Act (GNotKG). Appointments can be arranged by telephone, e-mail or via the contact form.
Digital Estate: Passing On and Protecting Crypto Assets
The digital estate is one of the most pressing issues of modern succession planning. Whoever loses the private key or seed phrase – or whose heirs cannot find them – loses access for good.
The Problem
Crypto assets are controlled by cryptographic keys. No intermediary grants heirs access.
- Without the private key or seed phrase, access is permanently excluded
- A considerable share of all bitcoin ever created is considered permanently lost
- Without planning, crypto assets cannot in practice be inherited – whatever the law says
The Notarial Solution
Estate planning and secure key custody interlock.
- Notarial will or inheritance contract with clear allocation of the crypto assets
- Custody concept: sealed envelope, safe deposit box, multisig, Shamir’s Secret Sharing
- Lasting power of attorney for the case of incapacity (sec. 1820 BGB)
Notary in Limburg an der Lahn
I practise as a civil-law notary with official seat in Limburg an der Lahn. I am also admitted as an attorney at law and hold the German specialist lawyer titles for employment law, inheritance law and family law. My academic work as a university lecturer complements my practice.
- Inheritance law and succession: As a specialist lawyer for inheritance law and as a notary, I have dealt intensively with questions of wealth succession for many years.
- Digital assets: The spread of crypto assets creates new legal challenges – in estate planning, incapacity planning and company formations.
- Office: Parkstraße 33, 65549 Limburg an der Lahn, Germany.
This website concerns my notarial practice exclusively. Information on my work as attorney at law is available on the website of the law firm Prof. Dr. Martin.
What the Notarial Form Achieves for Crypto Assets
Precisely because digital assets are not subject to any state register, the notarial deed creates clarity, evidentiary force and permanence.
Legal Certainty
Formally valid deeds, verified identity of the parties and clear, enforceable provisions.
Independence and Neutrality
The notary holds a public office (sec. 1 BNotO) and advises all parties impartially (sec. 14 BNotO).
Confidentiality
Comprehensive statutory duty of confidentiality (sec. 18 BNotO) – including as to the existence and extent of digital assets.
Evidentiary Force
Notarial deeds provide full proof as public documents (secs. 415, 418 ZPO) – even decades later.
Permanent Custody
Deeds are kept permanently; wills are recorded in the Central Register of Wills and reliably found on death.
Transparent Costs
Fees are set uniformly by the GNotKG – regardless of which notary you choose.
How the Notarial Process Works
From first enquiry to completion – structured, predictable and clearly communicated.
Enquiry
You briefly describe the notarial act you have in mind – by telephone, e-mail or via the contact form.
Preparation
I let you know which documents and information are needed – on the parties, the assets and the intended provisions.
Draft
You receive a draft deed tailored to your situation, with comprehensible explanations.
Coordination
We clarify open questions together; the draft is refined until all provisions match your intentions.
Notarisation
At the appointment the deed is read out, explained and signed. In suitable cases also online (sec. 16a BeurkG).
Completion
I handle register filings, statutory notifications and custody – you receive execution copies for your records.
Gifting, inheriting, contributing Bitcoin – what applies legally? The guide offers well-founded articles on gifts and allowances, the digital estate, powers of attorney, company formation and current case law on crypto assets. Current topic: the planned abolition of the one-year holding period from 2027 and what it means for your succession planning.
Frequently Asked Questions
Fees are governed exclusively by the Court and Notary Fees Act (GNotKG). They are uniform throughout Germany and not negotiable; the amount depends on the value of the transaction. I am happy to give you a cost estimate in advance.
No. The notarial fee claim is public-law in nature and must be paid in euros (secs. 19, 29 GNotKG). Bitcoin is not legal tender (sec. 14 (1) sent. 2 BBankG; art. 128 (1) sent. 3 TFEU), and the notary is obliged to charge the statutory fees (sec. 17 (1) BNotO). Performance in lieu (sec. 364 (1) BGB) fails due to the public-law nature of the claim.
Notarial custody of documents is possible under secs. 57 et seq. BeurkG. Whether and how depositing a private key or seed phrase makes sense should be discussed in the individual case. The combination of an estate plan and a staged custody concept is often the most reliable route.
Notarisations generally require the personal attendance of the parties (sec. 13 BeurkG). In certain cases a representative with a notarially certified power of attorney can act. Since 1 August 2022, certain notarisations can be carried out by online procedure (sec. 16a BeurkG), such as GmbH incorporations.
Yes. The choice of notary is free in Germany – you are not bound to the notary of your place of residence. For online notarisations (sec. 16a BeurkG), personal attendance is not required at all.
The German notary holds a public office (sec. 1 BNotO) and is bound to independence and neutrality, advising and notarising for all parties equally. The attorney, by contrast, represents one side's interests. I practise in both capacities – but this website concerns my notarial practice exclusively.
Yes. Notaries must report notarised gifts to the competent tax office (sec. 34 ErbStG); the parties' own duty to notify lapses (sec. 30 (3) ErbStG). That creates transparency and prevents later conflicts with the tax authorities – especially for crypto assets, whose transfer is otherwise hard to prove.
Only to the extent required for the specific structure – for instance to determine the transaction value or identify the gifted assets. Private keys and seed phrases never need to be disclosed for a notarisation. Everything you share is covered by the notarial duty of confidentiality (sec. 18 BNotO).
Arrange an Appointment
Briefly describe the notarial act you have in mind – I will get back to you promptly with an assessment and a proposed appointment.