I'm staying in Germany and I have a friend in India. He has a few ether coins in his wallet in India which he bought mid of 2017. He now wants to sell them. But in India, because of taxes, he will not gain much profit. So he asked me if he could send them to my wallet in Germany as a gift. I can sell them in Germany and send him the amount in parts as and when we happen to meet. Since it is a gift and I have not bought the coins I will not have to pay any tax on it in Germany. Is this legal and what are the risks?

  • I can't comment on your tax component since I am not familiar with German laws, but your friend will have to pay the tax if the amount is greater than 50,000 INR (about 650 EUR or about 0.5 ETH at the current price) even if it is a "gift" from you to him. It does not matter if you pay him back in cash or bank transfer, he will still be required to declare that as income. Not doing so would be illegal on his behalf.
    – Tanmay
    Jan 13 '18 at 20:01
  • What is the amount limit that can be given as a gift. Is it only INR 50,000 in a year ? I don't think so
    – Jio
    Jan 13 '18 at 20:29
  • Just that if the sum total amount of gifts received is greater than INR 50k, then its taxed. There's no upper limit for the amount that can be given as a gift.
    – Tanmay
    Jan 14 '18 at 5:44
  • What that means is, if the amount exceeds INR 50k, the entire amount gets added to the rest of his annual taxable income and that will be taxed according to the usual tax laws. This law does not apply if you're a direct family member btw.
    – Tanmay
    Jan 14 '18 at 5:53
  • 1
    I believe that in law It isn't a gift if the sender expects to receive something back in return. In this case you are providing a currency exchange service not simply receiving a gift. Apr 17 '20 at 13:39

I am from Germany and know a bit about the tax situation here.

If gains < 600€ in 1 year, then you don't need to pay taxes. You also don't need to pay taxes if you hold the Ether more than 1 year.

But you still have to include it into your tax report ("Steuererklärung").

  • Thanks for your input. But since the coins will be sent.to me by my friend as gift I don't have to pay taxes. There is no tax on gifts in germany. Isn't it ?
    – Jio
    Jan 13 '18 at 19:22
  • And for the exchanging? I don't think that it's legal. Otherwise, big companies could gift 10,000 BTC to a person in Germany who sells them and sends the euros/dollars back and no one has to pay taxes...
    – ndsvw
    Jan 13 '18 at 19:27
  • I understand it is not fair. But how is it exactly illegal. ?do you know any law in germany which proves that it is illegal do so. .
    – Jio
    Jan 13 '18 at 19:34
  • 1
    @Jio It's not a gift. It's part of a larger transaction where you are being given the cryptocurrency in compensation for obligations you will satisfy later. A gift is given out of generosity and not in exchange for any future benefit. Dec 19 '19 at 7:27

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