Virtual currency recognized as private money

There is no final withholding tax on speculative gains with the virtual currency "Bitcoin". The Federal Ministry of Finance has also commented on the virtual currency in other respects.

So far, the virtual currency Bitcoin has attracted attention mainly because of the sometimes strongly fluctuating exchange rates. Even though the circle of users has been rather limited so far, the tax authorities have now also taken notice of Bitcoins. In response to a question from the Bundestag, the Federal Ministry of Finance has stated that the virtual currency is recognized as a "unit of account" for tax purposes and is therefore a kind of "private money". First and foremost, this means that sales tax is also due when trading Bitcoins. The situation is better for speculators, because speculative gains from buying and selling Bitcoins are tax-free after a holding period of one year. In contrast to stock and interest income, there is no final withholding tax.