Cryptocurrency investors in Germany can benefit from a 0% tax on their profits if they keep their funds for a year without cashing out.
Germany recently made the news about being a friendly country that encourages citizens hold cryptocurrencies.
The rules are simple: if you want to profit from cryptocurrencies, you have to keep them in 365 day. You then convert them back into fiat money, all the profits you make are earned tax exemption.
Anyone who sells their crypto before the end of the holding period (known as the speculative period) must pay capital gains tax on the entire profit if it is exceeded. 600 euro.
During 1 year, investors only need to use their cryptocurrency to staking or lending, as a result cryptocurrencies can generate additional coins passively for the specified time period.
There has been debate about whether to increase the holding period 10 years in some cases or not. However, nGerman MP Frank Schäffler, revealed that the idea had been scrapped.
In a nutshell, any crypto gains are tax-free after one year, regardless of how the cryptocurrency is used during that time.