How does Germany's capital gains tax apply to profits from digital currency investments?

1 answers

• Rosen BergmannJun 13, 2021 · 4 years ago
  At BYDFi, we understand the importance of tax compliance when it comes to digital currency investments. In Germany, profits from buying and selling digital currencies are subject to capital gains tax. The tax rate varies based on the holding period of the investment. Short-term gains, from holding the digital currency for less than one year, are taxed at the individual's income tax rate. Long-term gains, from holding the digital currency for more than one year, are subject to a reduced tax rate. It's crucial to keep accurate records of all transactions and consult with a tax advisor to ensure compliance with tax laws.
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