Cryptocurrency will remain tax-free in Germany if you hold it for at least one year, according to a communiqué by the German Ministry of Finance.
For once, cryptocurrency holders in Germany will be happy to hear news from the ministry of finance.
It issued a statement addressing the taxation of cryptocurrencies, which outlines how tax authorities should handle crypto income from staking, lending, and airdrops.
Private individuals will not have to pay taxes on selling their Bitcoin or Ether if they have held their cryptocurrency for more than one year. This is in line with previously-available information about crypto taxation, which made Germany the most crypto-friendly nation, according to one report.
However, the ministry clarified that not even using BTC or ETH for staking and lending purposes triggers an extension of the minimum duration an individual has to hold their crypto. In other words, you can stake or lend your ETH and BTC and do not have to pay income tax if you hold it for at least one year.
That is a stark contrast to many countries, which consider income from staking taxable income.
The ministry also clarified that the current state of affairs should not be seen as a conclusive solution to crypto taxation in the country. In light of the speed of development in the blockchain space, it said it is already working on an additional statement detailing what records cryptocurrency holders need to maintain.
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