Permanent home in Germany to avoid paying taxes on crypto?

[Revoltec]

I have been reading the tax treaties with Germany and it seems like where you have a 'permanent home' is very important when it comes to the tie-breaker rules and physical presence, not so much. Also, you are deemed to be a German tax resident by simply having an address or an available room there at any point during the year. In addition, Germany does not tax capital gains from crypto that have been held for more than one year.

Now, if someone do not actually wanna spend much time in Germany, would this be a very good option to cash out crypto gains? Even if you stay in another country that Germany got a tax treaty with for more than 6 months but do not set up a permanent home (airbnb, hotels, etc.), would that be a problem? Seems like the very strict German tax laws on what makes you a tax resident in combination with the fact that long term holders are exempt from tax make the country a perfect option to cash out crypto gains.

Am I missing something?

 

[CoinMaster]

You need to rent a home in Germany and register yourself there for taxes, once done you can wait a year and cash out your cryptos tax free. I would wait a little more than a year to do so because it would look suspicious.

 

[Houdini]

Did you relocate to Germany to get your coins out tax free in a year ?

 

[Revoltec]

No. I went to Georgia instead. Both crypto and stocks tax free. Couldn't stand living in Germany for a year.

 

[Marshal]

No. I went to Georgia instead. Both crypto and stocks tax free.

Good choice

 

[jorge]

No. I went to Georgia instead. Both crypto and stocks tax free. Couldn't stand living in Germany for a year.

that is better than Germany

 

[Revoltec]

You need to rent a home in Germany and register yourself there for taxes, once done you can wait a year and cash out your cryptos tax free. I would wait a little more than a year to do so because it would look suspicious.

Do you know if it is needed to stay a year before selling them or can you sell them immediately as you move there as long as you can prove that the holding period was one year? By reading the law, they only mention the holding period

 

[daniels27]

Do you know if it is needed to stay a year before selling them or can you sell them immediately as you move there as long as you can prove that the holding period was one year? By reading the law, they only mention the holding period

The law actually states that gains from sales of goods that you have owned for less than one year are to be taxed:
https://www.gesetze-im-internet.de/estg/__23.html
You can cash out immediately when you move there. But you need to be careful to not be subject to any taxation anywhere else. If you have another apartment elsewhere, you may still get taxed there. If your German taxation is based on a DTA, you need to super careful as there are tie-breaker-rules, which you need to observer and even more importantly there are DTAs with subject-to-tax clauses, which state that the other party can tax if Germany does not tax. Also, if you trade professionally (with borrowed money or with employees), you will be taxed.

For bigger amounts, I would recommend checking yourself in detail
https://www.winheller.com/steuerrec...nales-steuerrecht/umzug-nach-deutschland.html