Staking & Borrowing with Crypto in Germany

Tax Questions
1

Q1: Considering staking (earning on Crypto):

1- Is the staking interest (reward) a taxable event?
2- What is the upper limit for tax-free staking interests per year?
3- Can the taxed interests be sold afterward without being taxed whatever the time of selling?
4- Do I need to wait 10 years until staked coins are tax-free when selling?
5- If I staked coins for earning then I stopped staking on them and held them for a year then I sold them, will that be a tax-free event?

Q2: Considering Borrowing with Crypto collaterals:

1- Is borrowing on Crypto a taxable event? how?

2

Hi, some of the questions you have might depend on the tax laws in your country. Can you tell us what country are you in so we can check?

3

The country is Germany

4

Hey Ramy,

Most of the questions you have asked are very specific to your country, and we cannot provide official tax advice to detailed questions like this, unfortunately. My best suggestion is that you contact the tax authority in Germany with these questions. If the tax authority in Germany operates in a similar way as in Norway where I’m from, they should be able to provide you detailed answers to all your questions.

Perhaps there are other Coinpanda users from Germany that can shed any light on this?