How to Pay Zero Taxes in Germany and Risks | European Blockchain Convention 9

[Music] 2 1 so very good uh afternoon very welcome to our firesight jat on how to pay zero taxes in Germany I mean I don't know how you guys feel about paying no taxes I kind of would like to do that but uh you better shouldn't but I have my dear colleague Matias with me and he will give you a little bit of insight how you should uh probably invest how you could invest in Germany and how you can avoid at least the majority of of taxes paid in Germany at least so Matas yes hi okay the problem on the thing usually is that no one thinks that German is a area where you have no taxes on crypto earnings I think your most people think it's very expensive when you pay high taxes usually you think about 50% taxes and you have social insurance and everything like that but in crypto it's different if you are private people and it takes only second 10 seconds to explain how it works you have one year duration you buy something in crypto and you sell it and if you wait one year and one day you pay no taxes so if you came from Spain you save 30% if you came from UK you pay maybe 50% at home and so people can come to Germany and there are some reasons of course that you get the tax free but it's very easy to get to Germany and because if you are in Europe based so you can live there and you can bring your family there and then you pay zero taxes but there are some things I have to explain what it's not working so if you say Okay I hold my tokens and everything like that longer than one year and you say okay maybe 2024 you think okay now I I'm a millionaire and you sell it here so you pay much taxes maybe you are in UK you pay 15% so you lost 50% of your profit and I think it's worth to think one second about going to Germany before you realize your profits and realize ever means that you sell them or you swap them and so it's very easy because the tax rules in Germany says if you hold them longer than one year you pay zero Taxas that's for sure but only for private investors it's not possible to say I bring your companies here then you pay about 30% so usually people think okay I stay at home with my family and relax on the ocean maybe here in Barcelona and I avoid taxes and say I pay taxes in Germany and maybe I have a company there this does not work so you have to move to Germany before you realize it that mean the Center of your family the center of your life has to be in Germany and it's only necessary for one day so before you swap your token or you sell them you have to be in Germany 100% with your family if you don't have a family so you have to prove that the center of your living is there what does it mean in in direct spoking the direct speaking if you say I move there and I rent a flat one second I rent a flat so you think that's enough but if you have a flat in UK flat in United State and wherever then you have to prove that the center of your life is in Germany and it's not to prove with the fiscal Authority in Germany the other ones like to get taxes so Germany says okay I have no problem with you you are here and we don't want taxes from you okay your question okay okay so mic there okay thank you understand the aspect of uh if it's a private investors that you won't be subject to the taxes uh my question is the following is there a threshold on a yearly basis is a threshold from where like you could be requalified from a private individual investors toward like professional investors any volume that would justify okay I can explain that's the second point if you are working for a bank or you are investor or something like me who is working for crypto companies and he's very related to the market then we say because of your professional reasons you could be a a Trader in the commercial Bay but it not depends on how many token you sell so you can sell maybe a 100 million EUR on one day and you are a private investor but if if you consult others or you hold token for others and you are like a people who hold treasure for others then you are commercial then you pay taxes of course okay it's okay okay that's the one reason the other reason is if you say okay I came to Germany and I have maybe security token you know security token is a new adventure we don't know where it goes and in Germany it's like interests so you pay 25% it's usually less than other countries but you pay 25% and so it's it's a risk if you go with many security token and you go to Germany then you can have problems and you will pay 25% taxes too the other point is you on the other stage there was a discussion about nft non funable token and there is a big risk that you have a v topic I think the V topic is all over Europe it's not a special German if you have an nft and all countries think about getting vat for this if you sell we any token and there are one advice for all over the world it's not only for Germany for all over Europe you should sell one nft each year so you are little if you are not a company if you're private people you should ever sell one nft maybe for 10 or 15 years per year to be a little company statuses and have no real if you sell more most countries in German and or Europe it works so most people think I have to hold it until that and will never sell an nft they think this nft will be much value and I will sell it maybe in 5 years 10 years and something like that but you should have salt one each years do you like to add something no no I'm just looking in to the eyes of the audience and uh they all are looking a little bit okay tell relocate to Germany uh shouldn't I I mean considering the weather outside I mean yeah it's pretty obvious that you shouldn't do that it's 8 degrees in Germany but text wise I think it makes sense to at least uh think about the options uh you have even within Europe and there are so many I mean we all talking about harmonization in Europe and everything should be kind of the same but when it comes to Texas I think it it makes sense to even to consider at least least if you could could set up uh business in Germany and I think Matias made a very good point on that one um if you are a private investor why not I mean it's not it's it's not a big deal actually I mean still in Europe and and and Germany is kind of in the center so easy to find yeah just go a little bit north and then you'll probably find it um besides that yeah I think that is a big point to make yes and some people think about okay when I realize my profits in Germany I had to cash out of course so in Germany it's not so difficult like other countries to get maybe 10 million or 15 Millions to a bank account so usually we have rules and we have professionals who can prefer so it works so some countries you have problems and you say okay I have 1 million euro at kren and I like to cash out so in Germany usually it's not a problem we have customers that get 3% interest by their Bank bring the money there wait to pay their taxes because sometimes in Germany you realize your profits within the year then you of course you have to pay taxes and for one second we have now Mr Schultz and Mr lintner are of um the government and if they change of course the rules can change but for the next three years I think it safe the model so if you say I like to stay a half year in Germany and you say say okay I go there to October and you leave next year it will work when you sell your token Z now and I think it is worth to think about it before the Bulls are going and the beers are coming and you think okay I'm rich in this night and tomorrow I have to sell all my token then you should have the idea okay where I go you need an airplane you have to give up your flat here and you should take your family with you and then it works okay we have 30 seconds that's why we have to stop if you have any questions just try yeah and I can highly advise you guys to contact Matias afterwards because he's very knowledgeable so if you really consider relocating or at least relocating your business talk to Matias appreciate okay thank you very [Music] much