The German Federal Ministry of Finance has released an announcement outlining its income taxation scheme related to blockchain and cryptocurrencies. Germans do not have to pay taxes on cryptocurrencies they hold for 1 year. This clause also applies to cryptocurrencies, crypto loans and crypto staking. The country's economic regulators had been working on this for several months.
BMF Creates New Laws
The new laws created by BMF also cover airdrop, lending, staking, hard fork and DeFi features. While in the past it was necessary for cryptos to be held for 10 years to be tax-free on gains from crypto, this is no longer required.