Crypto assets are taxed in Germany as private sales transactions (Section 23 EStG), so there is a speculation period of one year. This means that profits from crypto transactions are taxed at your personal tax rate if the period between purchase and sale is no more than one year. Profits from all private sales transactions are tax-free up to an exemption limit of €600.
In contrast to stocks, for example, crypto assets are not subject to withholding tax.
Therefore, Trade Republic does not automatically deduct taxes. Rather, the profits are taken into account in your tax return under private sales transactions (please contact your tax advisor for details).
Please note: It cannot be offset against your savings allowance (exemption order) or existing loss offset pots.
At the end of each calendar year, Trade Republic provides you with a report of your crypto transactions.
This means for you: You must monitor your tax liability independently and obtain tax advice if necessary, as we do not automatically deduct tax for you.