Options to save crypto taxes in Germany

[d12345]

Hi Forum Members

I will joining a crypto startup based in Germany in a few months and will be resident there. The issue I am facing is that the company will pay quite a lot of tokens in addition to my salary.

Based on my understanding Germany will tax them as income(tokens are tradable currently). The company has HQ in Switzerland, is there a setup using which I can save on taxes?

 

[FastPony]

I don't know the tax law in Germany, but my understanding is that taxes on employment income are generally difficult to avoid.

If they pay you a fixed number of tokens (vs. a fixed Euro equivalent), maybe there's a way you can take payment when prices dump temporarily. If Germany is like other countries, then the taxes would be based on the token value at the time when payment occurs.

What I do know about Germany is that cryptocurrency gains are tax free after a 1-year holding period. Thus, you wouldn't have to pay taxes on the appreciation (assuming the tokens go up in value ;-).

This is no tax advice and I could be wrong.

 

[JohnLocke]

What I do know about Germany is that cryptocurrency gains are tax free after a 1-year holding period. Thus, you wouldn't have to pay taxes on the appreciation (assuming the tokens go up in value ;-).

That's similar to what I know from the German tax system but need to be confirmed by someone professional. You can consult a tax consultant like TPP or some other tax consultancy firm, spend a few hundred Euro to get help to find the bets tax structure for you.

 

[FastPony]

If you hold your crypto for over a year as an individual, you do not have a tax liability on your earnings. In other words, for long-term holdings over one year, any increase in the value of your cryptocurrency is tax free.

Crypto Tax Guide Germany for 2024: [Kryptowährung Steuer]

Crypto tax in Germany can be complicated. Learn all about Germany’s attractive long-term, tax free crypto rules in this comprehensive guide.

tokentax.co

(It's the same for Gold as far as I know.)

 

[JohnLocke]

(It's the same for Gold as far as I know.)

Isn't Gold tax free in Germany there is also no VAT ?

 

[neweraoffshore]

@Admin yes, physical "investment" gold is VAT free. And yes after a holding period of 1 year the gains are tax free.
And guys.... the 1 year holding period means that capital GAINS are tax free, this doesn't mean, that the monetary benefit isn't taxed.
In the situation of @d12345 he would need to pay tax on the monetary benefit in the moment he receives his tokens. For example he gets tokens worth 10.000€ at 1.1.2021 he then has to pay tax for the 10.000€. If they are worth 15.000€ at 2.1.2022 then he can keep the additional 5.000€ tax free.

 

[FastPony]

So I was right ... if he/she can time the payment of the tokens (to coincide with low prices), that would reduce taxes legally. Then just wait for 1 year, and the appreciation is tax free.