Yugocean
Valued Contributor
In Germany, cryptocurrency is accepted as a personal property, and the German tax policy does not levying a capital gains tax on personal property, but a personal income tax. Also every year the income tax is charged on year's income.
On this basis, Germany taxes cryptocurrency only if it is sold during the year in which it is purchased. Therefore, holding the purchased cryptocurrencies till the next year means it is not year's income, so it cannot be taxed.
In addition, gains of up to €600 per calendar year on crypto sales remain tax-free. When it comes to redeeming staked crypto.
Recently (May 2022), the German Ministry of Finance has made decision on the tax-free holding period for crypto, which is a minimum of 10 years.This facility will remain even if the crypto holder lends or stakes to another party.
However, if any German sells back his/her purchased cryptocurrency in the same year, then tax is charged.
