Although it has not yet regulated the crypto market, Germany has one of the most crypto-friendly tax policies in the world. According to a report by Coincub, taxation in the country is friendly to digital assets.
Thus, Germany comes in first place in Coincub’s ranking. In Germany, crypto asset investors do not have to pay taxes on profits from digital assets as long as the balance is kept for more than a year.
On the other hand, Belgium is at the other end of the list, with high taxation for crypto assets. The report was released recently and shows which countries are the friendliest for those investing in this market.
Crypto asset Taxes
In addition to Germany, Italy, Switzerland, Singapore, and Slovenia are among the top places in the ranking. This is because these countries have a low tax policy on crypto assets.
Germany encourages investors to keep the balance saved for more than a year by not charging taxes on crypto assets profits. Residents of the country are exempt from taxation as long as the gain is kept for this period.
The result is increased adoption of digital assets in the European country. A report released by Gemini shows that about 4 out of 10 high-income investors have already invested in digital currencies such as bitcoin.
The survey also shows that 17% of Germans have invested in crypto assets at least once. However, Germany ranked seventh in Coincub’s ranking, which considers other indicators. The research platform explains that Germans are traditionally known as ‘savers’.
“Germany has a surprisingly progressive outlook on crypto assets tax. Overall, it has embraced the cryptoassets tax policy and formalized it more than most leading countries. Moreover, having a very generous tax on gains if your crypto asset is held for more than a year seems perfectly in line with a country whose population has a long tradition of saving rather than spending”.
To outline how each country deals with digital assets, the research platform analyzes indicators such as fraud and crime in the market, tax collection, policy adopted by governments for the sector, trading volume, and initiatives on regulation.