Do I Need to Pay CGT on Cryptocurrency When Moving from Australia to Germany?

 Author: OceanDrift(Newbie)Newbie

18 Jan 2025

Chat GPT Answer:

Germany's favorable treatment of cryptocurrencies held for more than one year can indeed simplify your tax situation, but the Australian Capital Gains Tax (CGT) rules may still apply depending on how you handle the deemed disposal when you cease to be an Australian tax resident.

Here’s how this works in your case:

1. If You Elect to Defer the Deemed Disposal

If you choose not to have the deemed disposal apply when leaving Australia:

• Australia’s Tax Rules:
  • The ATO does not tax you at the time of leaving, but your cryptocurrency will remain subject to Australian CGT rules for the entire period of ownership.
  • This means that if you eventually dispose of the cryptocurrency, Australia will consider the gain for the entire holding period (including the period when you are a tax resident of Germany).
  • However, as a non-resident of Australia, you would generally only be taxed on Australian-sourced income or taxable Australian property. Cryptocurrencies are typically not taxable Australian property, so there would likely be no Australian CGT when you sell while living in Germany.
• Germany’s Tax Rules:
  • If you've held the cryptocurrencies for over a year, Germany will not tax the disposal, as long as the sale meets their rules for tax exemption.

Outcome: If you defer the deemed disposal and later sell your cryptocurrencies while in Germany after holding them for more than a year, you would not pay CGT in either Australia or Germany.

Can someone confirm this answer is true?

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 Author: ULTRA77(I'm new)I'm new

3 Apr 2025

Hello, I am thinking about doing the same thing.

Can someone more knowledgeable than me please confirm if the above information is true?

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