Germany: Taxation of profits from cryptocurrencies (federal tax court decision)

A federal tax court decision concerning the taxation of profits from cryptocurrencies.

A federal tax court decision concerning the taxation of profits from cryptocurrencies.

The German Federal Tax Court (BFH) on 14 February 2023 held that profits from the sale of cryptocurrencies are taxable only if there is less than one year between the purchase and sale.

The court also held that losses are deductible if cryptocurrencies are held for less than one year. They can then be offset against gains from speculative transactions, i.e., in addition to cryptocurrencies, with art, precious metals or real estate, provided the real estate was sold within 10 years. However, gains from shares, funds and interest cannot be offset.

Read a March 2023 report prepared by the KPMG member firm in Germany


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