Germany

Germany Prepares To Tax Bitcoins

You gotta find 'em first

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Germany has become the first country to recognise Bitcoin as a real form of currency, which will be subject to tax like any other dosh.

The country's ministry has declared that Bitcoins are "units of account" and should be regarded as "private money". What this means is that anyone trading in the virtual currency will be liable to pay capital gains tax of 25 per cent.

However, in line with the country's well-known penchant for saving, anyone simply hoarding Bitcoin will not have to pay tax if their virtual wedge grows in value. All they need to do is keep the Bitcoin for more than 12 months to dodge the taxman.ock.