The German Federal Central Tax Office or Bundeszentralamt für Steuern (BZSt) treats Bitcoin and cryptocurrencies as private money for tax purposes, making German cryptocurrency tax laws easier to understand and more generous than many other countries. Some have gone as far as calling Germany a cryptocurrency tax haven.
The most common factors affecting how Bitcoin and other cryptocurrencies are taxed in Germany are as follows:
1. How long you’ve held the digital asset
2. Your income bracket
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