Crypto cashout in Germany, 0% tax,

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CryptoTrader87

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Hello everyone, I'm looking to cash out crypto in Germany, after holding for more than 1 year.

I'd like to pay 0% taxes.

About me:

***Private EU citizen, I have a friend who owns a house in Germany (he is not German, but he's a EU citizen).

Can I receive tax residence if I rent my friend's home? Or do I need to stay in Germany for at least 6 months?


Any help on how to cash out with no taxes in Germany, given my circumstances, would be highly appreciated.
 
Let me understand, would your idea be to take up residence in Germany, sell the crypto, and then return to your nice, peaceful country?
Tax residency is a process.
First of all it also depends on your country of residence...
 
Im currently in the same situation. Im trying to find out if there is a requirement for someone to be a tax resident of the full holding period of 12 months.

Regarding the 6-month question, that is not true if your only permanent home is in Germany due to the OECD tie-breaker rules. If Romania got a tax treaty with Germany, just make sure the only Permanent home you have during this period is Germany, and even 1 month of staying should be enough as long as there is no requirement for the paragraph above (Im still trying to find out).

Germany got a dwelling based residency so you will be most likely claimed to be a German tax resident from day 1.

Of what Im aware, there is no exit tax for Germany but you need to make sure Romania does not have an exit tax for this situation.

Make sure that you register with the local authorities.

Last edited: Feb 6, 2024
 
In the UK there's taxes in return from capital gains in so many years before - so best to check that in your own states
 
Revoltec said:
Revoltec said:
Im currently in the same situation. Im trying to find out if there is a requirement for someone to be a tax resident of the full holding period of 12 months.

Regarding the 6-month question, that is not true if your only permanent home is in Germany due to the OECD tie-breaker rules. If Romania got a tax treaty with Germany, just make sure the only Permanent home you have during this period is Germany, and even 1 month of staying should be enough as long as there is no requirement for the paragraph above (Im still trying to find out).

Germany got a dwelling based residency so you will be most likely claimed to be a German tax resident from day 1.

Of what Im aware, there is no exit tax for Germany but you need to make sure Romania does not have an exit tax for this situation.

Make sure that you register with the local authorities.
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Thank you, appreciate it.
 
Another reason why Cyprus might be bad is because you are not a tex resident from first day like in Germany due to dwelling based taxation
 
CryptoTrader87 said:
CryptoTrader87 said:
Hello everyone, I'm looking to cash out crypto in Germany, after holding for more than 1 year.

I'd like to pay 0% taxes.

About me:

***Private EU citizen, I have a friend who owns a house in Germany (he is not German, but he's a EU citizen).

Can I receive tax residence if I rent my friend's home? Or do I need to stay in Germany for at least 6 months?


Any help on how to cash out with no taxes in Germany, given my circumstances, would be highly appreciated.
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https://www.offshorecorptalk.com/th...ophole-for-crypto-”“-ways-to-reduce-tax.37291/
This would have helped you to sort it all nicely out!

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One thing that kept me away from Germany is that by national law it is not clear what the definition of a 'permanent home' is in case you do not work in Germany (in case you do have a job, the general guideline is 3 months physical presence), which can be a problem for tax treaties. In order to be sure, please spend at least 6 months there and do not have any permanent home or habitual abode in any other country.
 
Revoltec said:
Revoltec said:
One thing that kept me away from Germany is that by national law it is not clear what the definition of a 'permanent home' is in case you do not work in Germany (in case you do have a job, the general guideline is 3 months physical presence), which can be a problem for tax treaties. In order to be sure, please spend at least 6 months there and do not have any permanent home or habitual abode in any other country.
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There was once the case of Boris Becker with his sister's home in München to which he had a key while he was officially living in Monaco.
https://www.spiegel.de/panorama/pro...steuerhinterziehung-vor-gericht-a-219369.html
German tax authorities are among the hardest on this planet. If you are German or have family, better not stay in Germany. If you are a perpetual traveller and also stay 2 months in Berlin during your world trip, you probably won't have to worry much. Even if you are involved in outright criminal activities, by the time the police finds out, you will be gone.
 
The difference here is that for Boris Becker, they claimed he never gaved up his 'permanent home'.

Read up on the definition of a permanent home in Germany. You have cases where a person stayed for 1 year and still not a permanent home. Usually they want you to have a job or something else that ties you to the address. Otherwise, it is simply habitual abode.

But even here the requirement is expanded from 6 months to 12 months if you do not have a job. Even then, it is hard to physical presence within the EU. Many countries rely on you having a job there to come to a conclusion of how many days you were physically present.
 
CryptoTrader87 said:
CryptoTrader87 said:
Yes, that is the plan. I live in Romania. Do you think there's a solution based on my information?
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In principle and based on my personal experience, it is possible to rent your brother's house, get him to sign your registration form from the residence office, and then obtain a tax number. It takes 1-2 months to arrange, and you need to be present.

Then you wait 12 months and cash out your cryptocurrencies, wait an additional 6 months, then deregister from Germany and report that you have moved to Brazil. They do not check it. And your cryptocurrencies are out. I carried out this strategy 2 years ago. I received a letter from the German tax authorities, told them I live at an unknown address in Brazil, and have not heard from them since.

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"The second type of tax residence is the habitual abode (§ 9 General Fiscal Code). A person has its habitual abode at a place or an area where this person stays not only on a temporary basis. This is the case if the stay exceeds six months and is not interrupted for a longer period. Short-term breaks abroad do not interrupt the six-month period. However, vacations, health treatments or other private purposes do not lead to a tax residency in Germany if the stay does not exceed one year. This means that a job or business related stay in German hotels for a period of more than six month lead to a tax residency in Germany."
(German tax residence)

In other words, if you do not have a job in Germany, you will probably have to stay 1 full year and 6 months won't be enough.
 
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