Germany: Tax & Auditing Requirements

Taxation of cryptocurrencies

In Germany, Bitcoin and other cryptos are not considered as a commodity, a stock, or any kind of currency. Instead, they are considered as private money in a way that’s similar to foreign currency. Trading bitcoins/altcoins are considered as a private sale under rule 23 EStG which has tax-free benefits. According to this rule, it means anyone trading bitcoins/altcoins is totally tax exempted if their capital gains are not more than 600 EUR. Also, if a trader is selling his/her Bitcoin/altcoins after a period of one year or more, then those capital gains are also totally tax exempt.

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