Cryptocurrencies are not state centralized currencies. They are considered a separate asset class and are not subject to capital income tax laws (Kapitalertragssteuer/Abgeltungssteuer). You can read more about taxes for German investors in this article.
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Real cryptocurrencies Bitcoin & Co. are sold on special crypto exchanges, for example, Binance.
Tax payments in Germany on cryptocurrency depend on the period - how long you keep this or that cryptocurrency in your account/crypto wallet.
But that's not all.
There is also a cryptocurrency tax rebate - Freigrenze 600 euros.
And here it is important to understand the difference that Freibetrag 801 euro (as in promotions) and Freeborder - is not the same. If you hold cryptocurrencies for less than one year and your profitability exceeded 600 euros (for example, your profitability is 601 euros), then you will have to pay full tax for all income, and this benefit of 600 euros, as it were, “burns out”, and is not deducted from income.
For example, you sold several children's toys on Ebay on 200 euro (which, by the way, should be declared on the Steuererklärung tax return), then your remaining limit on tax-free cryptocurrency trading in this year will be 400 euro. Provided that you don’t “trade” anywhere else 😊
Tax on cryptocurrency income in Germany (if you still need to pay it, based on the above provisions), the investor is obliged self-declaration on a tax return. To do this, you should deposit the amount of your profit in Anlage SO ("Sonstige Angaben") your Steuerbescheinigung tax return.
Since recently, investments in cryptocurrencies have become available through some neo-brokers (Eg, Scalable capital* и TradeRepublic). And there is a significant tax difference from those cryptocurrencies that are traded on crypto exchanges.
At neo-brokers, cryptocurrencies are traded not “in pure form”, but in the form of securities, the so-called "ETP - Exchange Traded Products". Therefore, they are subject to tax rules. as for ordinary securities and all the necessary taxes are calculated by German brokers themselves.
Conclusions:
- Investors in Germany pay taxes on cryptocurrencies if they buy a “real” cryptocurrency on a crypto exchange and hold it for less than a year, receiving an income of more than 600 euros per year.
- The investor is obliged to declare taxes on cryptocurrency independently in the tax return.
- When buying a cryptocurrency in the form of ETP through a regular neo-broker, the broker itself automatically withholds the tax, similar to taxes on securities.
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Good afternoon.
I have 2 questions.
1. Do I need to report to the tax authorities when buying cryptocurrency for euros and then selling it for rubles? Those. in fact, it is difficult to assess the profitability of the transaction, because this is actually converting euros into rubles through cryptocurrency.
2. What are the restrictions and obligations regarding amounts, in terms of the procedure from point 1, if, for example, a friend asks him to make a similar conversion - i.e. Do I receive a transfer from him via IBAN and then carry out the operation from step 1?
Thanks in advance for the answers.
Good afternoon Valentin,
Very good question.
Only a tax specialist or berator at FinanzAmt can answer this question competently.
salut. si je conserve par exemple une crypto pendant plus d'un an, suis-je obligé de faire une déclaration au près du fisc au moment de la vente de cette crypto? ou la déclaration doit être faite seulement lorsque la crypto est conservée pendant moins d'un an ou que les bénéfices réalisés decu ne dépassent pas 600euro? Merci pour votre réponse
Si vos gains en crypto-monnaies sont imposables, vous devez les déclarer dans votre déclaration d'impôts.
Pour obtenir les informations les plus récentes et des détails sur votre situation individuelle, il est conseillé de contacter un conseiller fiscal ou le bureau des impôts. Il est également utile d'utiliser les ressources officielles et de vérifier les derniers changements dans le droit fiscal allemand concernant les crypto-monnaies.
Translated with http://www.DeepL.com/Translator (free version)
Hello. Tell me, the year is considered, let’s say: 13.03.2024/13.03.2025/XNUMX and until XNUMX/XNUMX/XNUMX and after this time my sales will be tax-free? Do I understand correctly or are there any pitfalls?
Hello.
Yes, the year is counted from the date of purchase of the crypt.
If you have any doubts, I recommend contacting a tax advisor.
Hello, I live in Germany.
Please tell me, did I understand correctly: if I start dealing with cryptocurrencies now, then I will have to wait a whole year, or rather keep the money in my wallet for a whole year, and then withdraw it (then I won’t pay tax? That’s right.
Hello! Germany does have a tax law provision regarding cryptocurrencies that may exempt you from paying tax on profits from the sale of cryptocurrencies under certain conditions. According to German tax law, if you hold cryptocurrency for more than one year, any profit made from selling it after that period is exempt from capital gains tax. This means that if you buy a cryptocurrency and hold it in your wallet for one year or longer, then when you sell that cryptocurrency, you will not be required to pay tax on the profit on its sale.
Good afternoon. Please tell me that if the company’s money is withdrawn into cryptocurrency, if possible, multiply it and withdraw it back. What are the consequences and is it profitable to do this if we are talking about the European Union?
I recommend that you consult with a tax advisor or cryptocurrency specialist in Germany to obtain up-to-date information tailored to your specific situation and ensure that you comply with all tax law requirements.
Good afternoon. Please tell me how I can register in Germany if I have an account with a ProP company. (different companies. They trade futures, indices, currencies, crypto) They enter into an agreement with me as an Investment consultant. I have a higher economic education. Now at the job center. Thank you in advance for your response. An example of a PROP from myfundedfx (not an advertisement).
Hello.
Investments and crypto are not prohibited in Germany.
Of course, you'll likely need the help of a tax advisor to understand your taxes and accounting.
But otherwise, it’s completely legal.
Good afternoon,
I live in Germany, my parents live in Russia. They want to transfer me USDT. Please tell me how to do this correctly so that there are no problems with account blocking, taxes, etc.
Thanks in advance
Andrei
Good afternoon.
In Germany, there is a gift tax (Schenkungsteuer) that applies to gifts and inheritances. The amount of tax and the need to pay it depend on the degree of relationship between the donor and recipient, as well as on the size of the gift.
For gifts from parents to children in Germany, the following tax incentives and tax exemption thresholds are established:
1.Tax exemption: Children can receive gifts from their parents tax-free up to €400,000 over 10 years. This means that if the gift amount does not exceed the specified limit, no gift tax will be paid.
2. Taxation: If the amount of the gift exceeds the tax exemption limit, the excess amount will be subject to tax at a rate depending on the size of the gift and the degree of relationship. Gift tax rates may vary and it is recommended that you consult a tax advisor for an accurate estimate.
3. Data Sheet: To prevent tax problems, it is important to correctly prepare documents confirming the fact of the gift and its value. This may be required to be provided to the tax office in the event of an audit.
These rules apply to all types of gifts, including cash, real estate, securities and other property. However, it is important to note that the rules are subject to change and it is recommended that you consult a tax advisor or lawyer specializing in German tax law for up-to-date information and advice on your specific situation.
Tell me please. How the tax office can see the holding period of cryptocurrencies. Does anyone use a Trustee crypto card to pay for goods in Germany? What are the pitfalls?
In Germany, tax policy regarding cryptocurrencies is developing and adapting to the new realities of the digital economy. Your question touches on several aspects: how do tax authorities track the length of ownership of cryptocurrency and the use of cryptocurrency cards such as Trustee to pay for goods.
Cryptocurrency holding period
Declaration: In Germany, as in many other countries, taxpayers are required to self-report their income, including income from cryptocurrencies. This means that information about the duration of cryptocurrency ownership and transactions performed must be provided by the taxpayer himself.
Tracking: Tax authorities can track cryptocurrency transactions through crypto exchanges and payment services, which can provide information upon request from tax authorities. If audited, the taxpayer may be required to provide details of their cryptocurrency transactions.
Shelf life: An important aspect of taxation of cryptocurrencies in Germany is the holding period. If the cryptocurrency was owned for more than a year, the profit from its sale is not taxed. For cryptocurrencies held for less than a year, profits are taxed as capital gains.
Using cryptocurrency cards such as Trustee
Tax consequences: When using a cryptocurrency card to pay for goods and services, each transaction can be considered a sale of cryptocurrency, which may be subject to taxation depending on the period of ownership of this cryptocurrency and the amount of profit received.
Underwater rocks: One potential pitfall is the need to accurately record all transactions for tax purposes, which can be difficult without specialized software or the help of a tax advisor. In addition, it is worth considering possible fees for exchanging and using the card, as well as changes in tax legislation.
Security and Privacy: When using any cryptocurrency services, it is important to pay attention to security and privacy issues, making sure that the service complies with all necessary security standards and protection of personal data.
In conclusion, when using cryptocurrencies and crypto cards in Germany, it is important to be aware of tax obligations and possible risks. It is recommended to keep detailed records of all your cryptocurrency transactions and, if necessary, contact a professional
Please tell me the publication date of the article. I can’t understand to what extent the fact that there is no tax after selling cryptocurrency after a year of ownership is relevant now
Article from early 2023.
The fact of ownership for more than 1 year is still relevant.