Cryptocurrency Taxes in Germany

Part 6 of “Crypto Taxes Around the World”

In Germany, cryptocurrencies are considered private money and enjoy a very favorable tax regime.

Indeed, you are completely exempt of capital gains taxes if you hold your crypto asset for more than one year.

If you hold for less than one year, income taxes of up to 45% apply.

Good news: Long-term crypto holders’s capital gains are tax-exempt in Germany

Obviously, you must be a resident of Germany to benefit from these tax benefits.

EU citizens can establish themselves in Germany without a visa. All they have to do is move there and justify residency to tax authorities. Non-EU citizens, on the other hand, will have to undergo more time-consuming administrative procedures and apply for a residence permit.

Is living in Germany worth it?

Germany is the most developed country in Europe and has a huge “digital nomad” scene so crypto enthusiasts will definitely feel right at home.

However, traders may want to avoid Germany as their activities will be subject to taxation.

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