Bitcoin. Com reported over the weekend: the German Ministry of Finance announced on Wednesday that even for mortgage loans, investors can be exempted from cryptocurrency income tax after holding for one year** As the country's first unified administrative instruction, the Department and the federal government finally coordinated a result, that is, the policy of levying capital gains tax on relevant assets held for less than 10 years does not apply to virtual currency.
(from: the German Ministry of Finance)
Koinly, a cryptocurrency tax company, explained: "in Germany, cryptocurrency is regarded as a private property, which means that the holder needs to pay personal income tax rather than capital gains tax".
● one year after the expiration of the holding period, the relevant proceeds from selling cryptocurrencies will be completely exempted.
● even if less than one year, German citizens can enjoy a profit exemption of € 600 per calendar year.
● the tax-free holding period is at least 10 years only when it involves cashing the pledged cryptocurrency.
In addition, Patrick Hansen, a cryptocurrency consultant, explained in a tweet quoting a letter from the Ministry of Finance: "even if it is used for mortgage / loan, the cryptocurrency assets obtained by selling after one year will still be exempt from income tax".
Finally, Katja Hessel, the State Secretary of Parliament, commented: "for individual investors, BTC / eth obtained from sale after one year can be exempted from tax without waiting for 10 years - even if you have used it for borrowing or equity.".