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?
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?
