Zurich+41 435 50 73 23
Kyiv+38 094 712 03 54
London+44 203 868 34 37
Tallinn+372 880 41 85
Vilnius+370 52 11 14 32
New York+1 (888) 647 05 40
Germany sets favorable tax space for individual assets in cryptocurrencies. Next, we will look at some of the most important aspects of the law governing the crypto taxes in Germany. Let’s try to find out all features of recommendations of German Federal Tax Office and Ministry of Finance for individuals, and also analyze how the conditions differ for legal entities. Thus, we offer you to consider short crypto tax guide Germany.
In Germany, digital assets are classified as private monetary means. It denotes although such money is not officially legal tender, you do not need to pay tax on profits from them if the amount of income does not exceed 600 euros. Profit from cryptographic currencies is indicated in official income forms, along with salary.
Thus, how does Germany taxes crypto?
Making purchases with crypto-currencies is similar to operations between cryptographic currencies in Germany. One specific example can be considered. You buy Bitcoin for 8 thousand euros, and after 3 months its price rises to 10 thousand euros. You decide to purchase some technique using the bitcoins you have. In this case, you will need to pay income on profit – that is, for 2 thousand euros that you managed to earn during these three months. But if you postpone the purchase of equipment for a period of more than 12 months, then you will not need to pay tax.
According to principles of cryptocurrency taxation in Germany set by the German Ministry of Finance, the use of an official coin to carry out an action on a cryptographic platform doesn’t influence income taxes liabilities.
German taxes legislation permits businesspersons to compensate for income with losses from previous periods or to carry forward the resulting loss to further tax periods in order to make up for them with profit in the future.
Our qualified lawyers will help you understand all the nuances of the tax regime in more detail, as well as tell you how to properly manage your digital assets in order to properly organize the payment of taxes in Germany. We have been working for many years, and have managed to establish ourselves as professionals who know their business perfectly. Contact us now and we will select for you one of the hundreds of profitable turnkey ready-made companies.
You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Banks for sale” and “Licenses for sale”.
The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.