Intro
Germany is one of the most crypto-friendly countries in the world, especially compared to other European nations.
The concept of crypto is a digital representation of value that is not created nor guaranteed by a central bank or other public institution. For taxes purposes in Germany, they are therefore not considered to be currencies but rather private assets.
If you’re planning to trade digital currencies in Germany, it’s important to understand how taxes work here.
How much tax do you pay on crypto in Germany?
As private assets, cryptos don’t attract Capital Gains taxes like equities or stocks.
Cryptos held for more than a year are exempt from taxation in Germany, as profit from private sales transactions involving cryptos that earn less than 600 Euros in profit in a calendar year.
Any profits made from buying or selling digital currency for fiat money, exchanging one crypto for another, or paying for products and services with crypto must all be reported and taxed in Germany.
If you hold onto your coins for one…
