I heard that short-term crypto gains in Germany get taxed like in other parts of Europe, around 40-50%. But if you hold for over a year, profits are tax-free. Can someone break this down for me? I live in Belgium, just an hour from Germany. Do I need to move to Germany or be a citizen to fall under this law? My home country takes around 60% with taxes, definitely not doing that.
To be honest, you typically need to be a resident in Germany to be under their tax rules. Makes sense right? Laws like this, especially around stocks and crypto, seem pretty absurd. You pay taxes on gains but can't deduct losses. Just a win-win for the government. And considering Germany even taxes gambling... what else did we expect?
Wait, that bold claim can’t be right. If poker players had to pay tax like you say, there wouldn’t be any successful ones! You’re mixing up the tax on the buy-in or pot with taxes on the profits. About residency, yeah, you need to live in Germany for at least 6 months to count.
In Germany, you pay a 5% tax on sports bets, no matter if you win or lose. If you bet 100, you only get 95 due to that tax. Exactly right on poker though. As for residency, definitely need to be registered there. It’s not just about staying over 183 days. That rule is for income tax. Investment gains go under the different Abgeltungssteuer.
I don’t know much about crypto taxes in Germany, but keep that 183 days in mind. From what my friends say, just living there doesn’t automatically make you a tax resident. You might need to unregister from your home country’s tax system before registering in Germany.
So, there's this guy I know who has a way to withdraw cash without banks being in the loop. Around 290€ daily can be taken out tax-free, I think. With tax rules like this, I’m staying away from banks for cashing out.
Honestly, the best stablecoin is good old cash. If you want to trade one crypto for another and cash is hard to get, I’d go for big projects like Ethereum or Polkadot. Look at dev stats in those projects too; it’s a good indicator.
It’s pretty tricky. EU countries will treat you as their tax subject unless you can prove otherwise. Just living there doesn’t change your residency status. In Germany, you need to register your residence first, or ‘Anmeldung’ as they call it, before you start counting your residency. Then you can aim for permanent residence, but remember, residency doesn’t equal tax residency.
This really depends on double taxation agreements between countries. Just living somewhere for 6 months doesn’t make you a tax resident. You might have to dig into international law or talk to a lawyer about the best steps to take, like setting up a company in a better tax spot.