I'm considering purchasing BTCW (GB00BJYDH287) via Scalable Capital. It's a physically-backed ETP with a redemption option in its prospectus, but Scalable doesn't offer redemption.
Does this still qualify as a private disposal under German § 23 EStG, making gains tax-free after 12 months? Scalable says they can't confirm—the issuer determines the tax treatment.
Has anyone here sold BTCW through Scalable after 1+ year and had the tax exemption applied?
WisdomTree Physical Bitcoin Tax-Free After 1 Year in Germany?
byu/Tiny_Pomegranate7947 inBitcoin
Posted by Tiny_Pomegranate7947
2 Comments
Can’t speak to the German tax side of things but I’ve been looking at BTCW myself through a different broker. The physical backing should technically qualify it as a private disposal but man, tax authorities can be weird about ETPs even when they have redemption clauses
Might be worth checking with a German tax advisor who actually deals with crypto stuff rather than relying on what Scalable tells you – they’re probably just covering their arse legally
I think it will be possible to cash out this particular product tax-free after a year
(§ 23 EStG.) But I’m not a tax pro.
• The broker generally does not automatically withhold capital gains tax (unlike with standard equity ETFs or securities). You must report any taxable gains (< 1 year) yourself on your tax return (Form SO).
• This rule applies only to personal assets (not to business assets or commercial investors).
• This applies specifically to physically backed ETPs with a delivery option, such as this WisdomTree product. In contrast, standard Bitcoin ETFs without physical delivery (e.g., some U.S. spot ETFs) or pure ETNs without a delivery option are subject to the standard withholding tax—regardless of the holding period.
Translated with DeepL.com (free version)