hey bro. my binance is registered on Pakistani details id/address. however i have used revolut here in germany to deposit money. now if i decide to sell my crypto, will i pay my tax here or in pakistan?
Great video Ahsan.... 1 question....... When selling the btc on the exchange, which banks in Germany are best to transfer the cash into, without the account being frozen. Basically, which banks in Germany are btc friendly? thank you
Thanks for the video Ashan! I have my Cardano staking on a Cold wallet. I'll probably sell some in next BullRun. From the Cold wallet to Binance, does the government explores from where it came from? Cause I have been staking for the last 3 years already...so no chance to avoid staking and getting a lot of extra coins as well. Thanks!
Thanks Ahsan! Knowing that owning crypto since more than 1 year makes the benefits coming from these cryptos tax free, is it still mandatory to write these transactions in the tax return document? Is this rule of tax free after 1 year owning the crypto applying to ETN like VanEck Crypto Leaders or ETP Crypto Basket?
Not mandatory but still recommended. ETPs unfortunately do not have the same rules. Those are similar to ETFs, meaning that these are subject to capital gains tax (25% +soli+ Church tax)
Good afternoon i can I keep crypto on exchange or in wallet for 1 year is tax free in Germany, what about selling it into USDT should I keep the USDT for 1 year again? 🎉
Haha. I’ve learnt so much from this video. Thank you :). Funny thing is I’ve been holding ETH, MATIC and SOL and I’m just hearing about a cold and hot wallet for the first time. Is the €600 exemption for crypto after the current €1000 exemption on stocks? Are these two completely different exemptions?
Glad you found something new from this video. The 600€ is separate from the Stock exemption order. However that 600€ includes profit from the sale of precious metals and gemstones, coin and stamp collections, vintage cars, foreign currency, gold bars and gold coins, jewelry, antiques, paintings and other works of art, etc
Thanks for the video 👍 Are crypto ETPs as offered by brokers like Scalable Capital also taxfree after 1 year ? Or are they considered like ETFs from the tax authorities and you pay 25% Gains tax, even if you sell it after a decade ?
Hi Ahsan! Thanks for the valuable information. I have one question though. I’ve been actively daytrading and have executed like thousands of trades over the last year. And more are coming. 😁 How do I keep track of such a vast amount of transactions? Seems tedious and unrealistic task. And now I’m facing a problem of using the money I’ve earned on crypto. I don’t know how to properly tax all of this mess and that’s why I’m being cautious making transfers to my bank account. The only way I see is to just cash it out through third parties. Would be glad to receive any advice. Cheers!
Well if you are doing thousands of trades, then you might have to register yourself as a Trader in Germany. And if you are having a lot of Profit, it is definitely wise to contact a legal expert who can guide you properly. Its better to do things properly and pay some taxes instead of being heavily charged by the finanzamt
Hi Ahsan, great video thanks for that. So for eg. If I bought 20sol in March23, another 20 Sol in April 23 and another 10 in May 23, then i can sell 20 sol tax free in March 24, right? If All the coins are sitting on the same wallet, does it have to be shown to the finanzamt that the same coins which i bought in March 23 are being sold and not the ones from from April or May? Or this this assumed for calculations that only the ones bought in March 23 are being sold in March 24?
Well if you can show that those are the same coins which you bought in March 23 then it would be good but you can always use the FIFO method and say that the first bought coins were the ones which were sold first.
Thanks for the information, Let's say I have 100 transaction spanning 5 Crypto Currencies for example, do I have to fill out the form 100 times? or fill it 1 time for each crypto currency? I am talking here about short term gains transactions. Can you recommend a specific tool that helps filling out these forms automatically?
hi ahsan great video. one question if in a bull run peak you want to take profits how do you sell the crypto then? Is converting the crypto to USDT and then holding it there for a year makes it tax free? For Example if I buy btc now sell it after 3 months at the top and then convert it into usdt for holding it for 1 year. will it help? How do you hold it so that you pay 0% tax?
Converting from Crypto to USDT also counts as a Taxable Event. For example: on 01.03.2024 you buy 1000$ worth BTC , you convert the same amount of BTC before 01.03.2025 and get 1200 USDT , you still got a profit of 200$. This 200$ would be taxed
Sir if I bought crypto in my home country and move to Germany do I have to pay tax if i am not saling just holding....if i try to sale do the time of holding them in my home country will count??
So exchanging one crypto for another (even for a stable coin such as USDT) goes under a taxable event? And what if I then await a year from converting into a USDT? Does it then become tax free gain? Thanks in advance. I am currently a UK tax resident with a EU passport considering moving to Germany and becoming a tax resident there.
Yes changing one crypto to another (even stable coin) will be considered Taxable Event. If you buy a coin, wait a year then the first conversion would be tax free.
@@ahsanfinance so if at the end of hossa I convert all altcoins onto a stable coin and await a year from that conversion, that waiting period will not offset my tax liabilities in Germany? Only the first and a single exchange from a fiat onto a crypto plus a year wait period can give 0 tax liability???
Well if the alt coins have already been held for a year, then they are tax free so if you convert from alt to stable coin after 1 year then this trade would be tax free.
Hi please make also make a video about the stocks taxes in Germany. For example for married couples how much money stocks are taxable and how much money is free ?
Hi thanks for an informative video. So I have a company who’s offering me my income as their employee in USDT. I’m in Germany and the work is remote, in this case I’m getting the USDT in a cryptowallet which I then myself convert to Euro. What are the tax things I need to know here?
Hey Ahsan. If I convert my crypto for example Ethereum after 1 year of holding to stablecoin like USDT and then sell it do I have to pay tax in Germany or is it tax-free?
Bro what if im doing arbitrage trading through an algo platform using flash loan and earning profits which are getting collected in metamask, what will be the overall impact of this on me in Berlin? Is it legal over there? What will be the tax related impact on it?
Well it depends on the platform and the algorithm. But generally each trade itself has to be considered individually and taxes should be calculated based on each trade. All the rules ive mentioned in the video will apply for Berlin too
I have a question about how german accounts define a year. I have held my crypto for over a year since buying while living in Australia. If I live in Germany long enough to be subject to tax but still less than a year, does the crypto classify as held for over a year in the german taxman’s point of view?
Hi Ahsan, Thanks a lot for your great videos, I have a question, and i will be glad if you can help me with it. I want to start P2P trading company in germany, but I didn't find anything to help me to establish one. I started it private with a WISE account, but it is frozen because of a lot of transactions. Is there any way legal to start a company that is trading crypto, specifically P2P method. And which bank can i use in germany or Europ with this function. Thanks a lot in advance❤
hi Ahaam! you videos are so informative. I am new in Germany but i have been a crypto trader in my other country. pls what is the first step to do when trading in Germany? will i have to register with Germany government before i start trading?
My binance account is originally registered in Pakistan. All of the amount I put in my binance account is from my pakistan bank via p2p. I have been doing trades here in Germany from the same binance account. Do I have to pay taxes on this?
Ok, also there is one coin I bought in 2021 and I DCA it this year. If I take profit from the coin in the next month do I have to pay tax on that? Or I don't since that coin was originally bought in 2021?
By using FIFO method, you can find out which portion of the coin is older than 1 year. Only that portion of the coin would be tax free other portions would be taxed
You can do P2P but most German bank do not like frequent and direct transactions related to Crypto. This may lead your bank account to be frozen or closed
What if buy one coin and partially sell it in different intervals. Then I buy the same coin again at a higher price and again sell it in intervals. If I use the FIFO method, then this will come out to be more profit on which I have to pay tax than what actually got as profit. How do I calculate in this case?
Well you pay tax on the overall profit. For example your first trade made a profit of 10000€ but the second trade made a loss of €5000, only the overall profit would be taxable i.e. the €5000
@ahsanfinance Thanks for the reply. What would be my date of entry if there are multiple entry dates? And what would be my date of exist if there are multiple selling dates for the same coin.
Well I cant answer for your specific case, but generally the Entry date would be the first date of buying and the exit date would be the latest date of selling.
Hey bro please I have an urgent question. First, I have been running crypto with an account in a centralised exchange created and verified in my home country in 2017 and then later moved to germany as a student. Then i bought some bitcoin with my german card in p2p late lsat year and holding only the btc. and now btc has added value but i do not want to convert to usdt first and still holding. so my question is, since this is not a german account and i did not open it in german territory, 1) am I still liable to tax in Germany if for instance there is already a tax in place in my home country as this is an account verified with docs from my home country back in 2018? but since i now earn in euros and all my money is in german banks, I have to buy all my cryptos now with German cards. Looking forward to your response . Thanks
If the crypto has been held for more than a year and you are a Permanent Resident of Germany (not on a Visit visa) then the German tax rules will apply. It doesn't matter where the account was open. So if you hold the crypto for more than a year you do not have to pay taxes on them.
Ahsan hello. Can a business in Germany receive crypto on its wallet, than sell it in the cryptoexchange for euro to put the euro on its account and than make a sale or a service?
If you are asking if a Business can accept crypto as a payment to a service, then yes they can as long as the Euro value at the time of accepting payments is put into the accounting system
If there is a profit involved, you have to pay taxes on them. And if you send crypto to someone else in another country, that person might be obliged to pay gift tax in their country.
If you are using an Exchange like Binance to buy crypto, then you know how much crypto was bought at what time. While selling you can use FIFO (first in first out) calculation to say that X amount was bought 1 year ago and after selling that X amount, no taxes shall apply on it.
Thanks! Really helpful video. Would love to see a go through tutorial on crypto tax reporting tool!
Glad you liked the video. I will try to make a video on the Crypto tax reporting tool soon 😇
Thanks Ashan but i dont understand if i sell my alts to usdt and holding in to the stable coin for year or more than a year is that tax free?
great video, you put a lot of research and effort. much appreciated!!
Really glad you liked the video 😇
Great video, love the information. You confirm what you said in a past video about the same topic.
Glad it was helpful! Just curious Which point are you talking about?
hey bro. my binance is registered on Pakistani details id/address. however i have used revolut here in germany to deposit money.
now if i decide to sell my crypto, will i pay my tax here or in pakistan?
If you are a resident of Germany then you have to pay taxes here.
Hello Ahsan, great video! Short question: if I keep my crypto for more than one year do I need to declare them in the steuererklaerung ?
Nope, if you buy and hold then no need to mention it in a tax return.
Hi Ahsan, can you make a video on coinmetro as well?
Will look into it, thanks
Great video Ahsan....
1 question.......
When selling the btc on the exchange, which banks in Germany are best to transfer the cash into, without the account being frozen.
Basically, which banks in Germany are btc friendly?
thank you
Depends on the frequency and the amount of Fiat coming into the account
@@ahsanfinance 1000€ a month for example
Thanks for the video Ashan!
I have my Cardano staking on a Cold wallet. I'll probably sell some in next BullRun. From the Cold wallet to Binance, does the government explores from where it came from?
Cause I have been staking for the last 3 years already...so no chance to avoid staking and getting a lot of extra coins as well.
Thanks!
At the moment I don't think they would be able to track it but as I mentioned in the video the Government is working on improving their technology.
@@ahsanfinance thanks 🙏
Glad to help
Thanks a lot for the valuable information..👍
Glad you liked the video
Great vid!
Glad you liked it 😇
Great job 👏 keep going
Glad you liked the video 😇
Thanks Ahsan!
Knowing that owning crypto since more than 1 year makes the benefits coming from these cryptos tax free, is it still mandatory to write these transactions in the tax return document?
Is this rule of tax free after 1 year owning the crypto applying to ETN like VanEck Crypto Leaders or ETP Crypto Basket?
Not mandatory but still recommended. ETPs unfortunately do not have the same rules. Those are similar to ETFs, meaning that these are subject to capital gains tax (25% +soli+ Church tax)
@@ahsanfinance understood thanks a lot!
Glad to help
Good afternoon i can I keep crypto on exchange or in wallet for 1 year is tax free in Germany, what about selling it into USDT should I keep the USDT for 1 year again? 🎉
Thanks! Ahsan learnt a lot from this video. Which bank would you recommend to withdraw the money without any problems?
Ive heard good things about C24: ua-cam.com/video/lXdm9F8Vrg8/v-deo.html
Haha. I’ve learnt so much from this video. Thank you :). Funny thing is I’ve been holding ETH, MATIC and SOL and I’m just hearing about a cold and hot wallet for the first time.
Is the €600 exemption for crypto after the current €1000 exemption on stocks? Are these two completely different exemptions?
Glad you found something new from this video.
The 600€ is separate from the Stock exemption order. However that 600€ includes profit from the sale of precious metals and gemstones, coin and stamp collections, vintage cars, foreign currency, gold bars and gold coins, jewelry, antiques, paintings and other works of art, etc
Should I report my crypto assets even if I lose money? Or didn’t make profit more than 600€ ?
Yes if you have losses you should definitely report them. Even if you have profits of less than 600€ it is good practice to declare them.
Thank you. I didn’t know about this tax free after holding for one year😁
Glad that you found the video helpful 😇
Thanks for the video 👍 Are crypto ETPs as offered by brokers like Scalable Capital also taxfree after 1 year ? Or are they considered like ETFs from the tax authorities and you pay 25% Gains tax, even if you sell it after a decade ?
Glad you like the video. Yes the ETPs are considered like ETFs so you have to pay 26.75% on any Gains.
Hi Ahsan! Thanks for the valuable information. I have one question though. I’ve been actively daytrading and have executed like thousands of trades over the last year. And more are coming. 😁 How do I keep track of such a vast amount of transactions? Seems tedious and unrealistic task. And now I’m facing a problem of using the money I’ve earned on crypto. I don’t know how to properly tax all of this mess and that’s why I’m being cautious making transfers to my bank account. The only way I see is to just cash it out through third parties. Would be glad to receive any advice. Cheers!
Well if you are doing thousands of trades, then you might have to register yourself as a Trader in Germany. And if you are having a lot of Profit, it is definitely wise to contact a legal expert who can guide you properly. Its better to do things properly and pay some taxes instead of being heavily charged by the finanzamt
Hi Ahsan, great video thanks for that. So for eg. If I bought 20sol in March23, another 20 Sol in April 23 and another 10 in May 23, then i can sell 20 sol tax free in March 24, right? If All the coins are sitting on the same wallet, does it have to be shown to the finanzamt that the same coins which i bought in March 23 are being sold and not the ones from from April or May? Or this this assumed for calculations that only the ones bought in March 23 are being sold in March 24?
Well if you can show that those are the same coins which you bought in March 23 then it would be good but you can always use the FIFO method and say that the first bought coins were the ones which were sold first.
Thanks for the information, Let's say I have 100 transaction spanning 5 Crypto Currencies for example, do I have to fill out the form 100 times? or fill it 1 time for each crypto currency? I am talking here about short term gains transactions. Can you recommend a specific tool that helps filling out these forms automatically?
No need to fill out every transaction, just Once per cryptocurrency.
hi ahsan great video. one question if in a bull run peak you want to take profits how do you sell the crypto then? Is converting the crypto to USDT and then holding it there for a year makes it tax free? For Example if I buy btc now sell it after 3 months at the top and then convert it into usdt for holding it for 1 year. will it help? How do you hold it so that you pay 0% tax?
Converting from Crypto to USDT also counts as a Taxable Event. For example: on 01.03.2024 you buy 1000$ worth BTC , you convert the same amount of BTC before 01.03.2025 and get 1200 USDT , you still got a profit of 200$. This 200$ would be taxed
Sir if I bought crypto in my home country and move to Germany do I have to pay tax if i am not saling just holding....if i try to sale do the time of holding them in my home country will count??
Generally depends on the country you are coming from. In any case there is no tax if you are just holding crypto.
So exchanging one crypto for another (even for a stable coin such as USDT) goes under a taxable event? And what if I then await a year from converting into a USDT? Does it then become tax free gain? Thanks in advance.
I am currently a UK tax resident with a EU passport considering moving to Germany and becoming a tax resident there.
Yes changing one crypto to another (even stable coin) will be considered Taxable Event. If you buy a coin, wait a year then the first conversion would be tax free.
@@ahsanfinance so if at the end of hossa I convert all altcoins onto a stable coin and await a year from that conversion, that waiting period will not offset my tax liabilities in Germany? Only the first and a single exchange from a fiat onto a crypto plus a year wait period can give 0 tax liability???
Well if the alt coins have already been held for a year, then they are tax free so if you convert from alt to stable coin after 1 year then this trade would be tax free.
Do you still have to report it if sold after holding for more than 1 year?
You don't HAVE to but its better if you do
Hi please make also make a video about the stocks taxes in Germany. For example for married couples how much money stocks are taxable and how much money is free ?
I have an old video on this topic, but I will make an updated video soon 😇
Hi thanks for an informative video. So I have a company who’s offering me my income as their employee in USDT. I’m in Germany and the work is remote, in this case I’m getting the USDT in a cryptowallet which I then myself convert to Euro. What are the tax things I need to know here?
Well thats a complicated thing and involves rules for multiple countries. I recommend contacting a Tax Consultant to follow your specific case
Hey Ahsan. If I convert my crypto for example Ethereum after 1 year of holding to stablecoin like USDT and then sell it do I have to pay tax in Germany or is it tax-free?
If a crypto was held for 1 year and converted to a stable coin, selling the stable coin can be tax free as the 1 year period was fulfilled.
Hi great video! If i have my cryptos in nexo plaftform and the gains were less than 600 euros, i need to declare it ?
Did you trade the crypto? or are you just talking about unrealized gains?
@@ahsanfinance yes, some of them i sold it , and other i putted in Fixed Terms in the application, that give me a daily interest.
As long as the profit is less than 600 for the whole year , no need to mention it.
@@ahsanfinance thank you for your help :D
Bro what if im doing arbitrage trading through an algo platform using flash loan and earning profits which are getting collected in metamask, what will be the overall impact of this on me in Berlin? Is it legal over there? What will be the tax related impact on it?
And how can I withdraw the usdt from metamask? Do we have any other option to save taxes on withdrawal
Well it depends on the platform and the algorithm. But generally each trade itself has to be considered individually and taxes should be calculated based on each trade. All the rules ive mentioned in the video will apply for Berlin too
Is there any tax on USDT to Euro. As Stablecoins don't have profits.
There will be a tax if profit is involved similar to forex trading. Even with stable coins there can be a profit
I have a question about how german accounts define a year. I have held my crypto for over a year since buying while living in Australia. If I live in Germany long enough to be subject to tax but still less than a year, does the crypto classify as held for over a year in the german taxman’s point of view?
I am not an expert in this but from my understanding the Date of buying the crypto would be considered, not the location from where it was bought.
@@ahsanfinance thank you
Glad to help
Hi Ahsan, Thanks a lot for your great videos,
I have a question, and i will be glad if you can help me with it.
I want to start P2P trading company in germany, but I didn't find anything to help me to establish one.
I started it private with a WISE account, but it is frozen because of a lot of transactions.
Is there any way legal to start a company that is trading crypto, specifically P2P method.
And which bank can i use in germany or Europ with this function.
Thanks a lot in advance❤
if I have tax-free profit, should I still need to file a tax return?
Its better to add the details in the tax return
i am not a tax resident in Germany. İf i transfer my crypto to a german exchange and cash out to a german bank account do i need to pay tax?
Depends on the rules of the country where you are a Tax Resident of.
Hi
Did you forget or the law has been changed that gains less than 600 euros are not taxable?
Nope, the law is still there, didn't I mention the 600€ limit in the Video?
No u did not
hi Ahaam! you videos are so informative. I am new in Germany but i have been a crypto trader in my other country. pls what is the first step to do when trading in Germany? will i have to register with Germany government before i start trading?
Hi , Its Ahsan 😂. Well the registration depends on The frequency of your trades.
like in a week i trade 3 times. is it ok?
It shouldnt be a problem
My binance account is originally registered in Pakistan. All of the amount I put in my binance account is from my pakistan bank via p2p. I have been doing trades here in Germany from the same binance account. Do I have to pay taxes on this?
Yes as you are a Resident of Germany you need to follow the German laws
Ok, also there is one coin I bought in 2021 and I DCA it this year. If I take profit from the coin in the next month do I have to pay tax on that? Or I don't since that coin was originally bought in 2021?
By using FIFO method, you can find out which portion of the coin is older than 1 year. Only that portion of the coin would be tax free other portions would be taxed
in Germany can I do Binance P2P in Germany in my bank ? please make a video on that
You can do P2P but most German bank do not like frequent and direct transactions related to Crypto. This may lead your bank account to be frozen or closed
@@ahsanfinance yes that's the main problem . so in that case in europe which country is preferable for P2P brother ?
I can only talk about Germany from my own experience.
What if buy one coin and partially sell it in different intervals. Then I buy the same coin again at a higher price and again sell it in intervals. If I use the FIFO method, then this will come out to be more profit on which I have to pay tax than what actually got as profit. How do I calculate in this case?
Well you pay tax on the overall profit. For example your first trade made a profit of 10000€ but the second trade made a loss of €5000, only the overall profit would be taxable i.e. the €5000
@ahsanfinance Thanks for the reply. What would be my date of entry if there are multiple entry dates? And what would be my date of exist if there are multiple selling dates for the same coin.
Well I cant answer for your specific case, but generally the Entry date would be the first date of buying and the exit date would be the latest date of selling.
Hey bro please I have an urgent question. First, I have been running crypto with an account in a centralised exchange created and verified in my home country in 2017 and then later moved to germany as a student. Then i bought some bitcoin with my german card in p2p late lsat year and holding only the btc. and now btc has added value but i do not want to convert to usdt first and still holding. so my question is, since this is not a german account and i did not open it in german territory, 1) am I still liable to tax in Germany if for instance there is already a tax in place in my home country as this is an account verified with docs from my home country back in 2018? but since i now earn in euros and all my money is in german banks, I have to buy all my cryptos now with German cards. Looking forward to your response . Thanks
If the crypto has been held for more than a year and you are a Permanent Resident of Germany (not on a Visit visa) then the German tax rules will apply. It doesn't matter where the account was open. So if you hold the crypto for more than a year you do not have to pay taxes on them.
Ahsan hello. Can a business in Germany receive crypto on its wallet, than sell it in the cryptoexchange for euro to put the euro on its account and than make a sale or a service?
If you are asking if a Business can accept crypto as a payment to a service, then yes they can as long as the Euro value at the time of accepting payments is put into the accounting system
Can we transfer our profits to someone in another country(as crypto) and withdraw only the investment amount in germany, do we need to pay tax?
If there is a profit involved, you have to pay taxes on them. And if you send crypto to someone else in another country, that person might be obliged to pay gift tax in their country.
Hi Ahsan, do u know if I realised profit after 1 year of crypto holding, how much would be free of tax?
Depends on which rule is followed, FIFO or LIFO
@@ahsanfinance please go a little bit more in details
If you are using an Exchange like Binance to buy crypto, then you know how much crypto was bought at what time. While selling you can use FIFO (first in first out) calculation to say that X amount was bought 1 year ago and after selling that X amount, no taxes shall apply on it.
Which app do you use apart from scalable capital ?
I use Trade Republic, Coinbase, Binance , eToro ( have some assets there but dont use it anymore)
@@ahsanfinanceis it possible to open trade republic account with non Eu passport -Indian passport with germany resident permit - not PR?
@@ahsanfinance why donot you use these app now if you want to share. For a newbie which app would you suggest with minimum fees