How does Germany's capital gains tax apply to profits from cryptocurrency trading?

1 answers

• Prokopenko ProkoNov 11, 2023 · 2 years ago
  Certainly! Germany treats profits from cryptocurrency trading as capital gains, which are subject to taxation. If you sell or exchange cryptocurrencies and make a profit, you will need to pay capital gains tax on that profit. The tax rate depends on the holding period of the cryptocurrency. If you held the cryptocurrency for less than one year, the profit is considered short-term and is taxed at your regular income tax rate. If you held it for more than one year, the profit is considered long-term and is subject to a reduced tax rate. It's important to keep records of your cryptocurrency transactions and accurately report them on your tax return to comply with German tax laws.
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