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Managing, Growing And Securing Crypto Assets in Germany

Legal and tax advice for successful crypto investors

Since 2013, WINHELLER has been intensively involved in the topic of the laws concerning and the taxation of cryptocurrencies. Over the years, our team has advised dozens of investors on the particularities associated with the crypto asset class. We would like to provide an overview here of which legal and tax issues are relevant to successful crypto investors:

1. Asset growth

Operationally, the first priority is the tax optimization of current incomes. Almost as exciting as the development of cryptocurrencies is tax law.

Since taxes are regularly the largest cost item and one of the greatest obstacles to asset growth, we can be content that we have quite a few choices and thus opportunities for influence in tax law. Staking, lending, mining, forks and other actions can be used to influence the tax burden and improve asset growth.

2. Establishment of an asset holding company

Diversification of assets is useful from a legal and tax perspective. It

  • separates the asset spheres,
  • facilitates planning,
  • creates incubators,
  • pools assets,
  • shields effects and
  • ensures favorable tax rates in some circumstances.

The areas of application for holding structures are as diverse as the individual circumstances. We ensure good decisions in the creation of the structure and in the choice of legal form.

3. Proofs of origin and asset certificates

You will have explained to your astonished family members a few times how you accrued your assets. At times, you chose to give the long version and, at times, the short version. For

  • banks,
  • buyers,
  • other market participants,
  • notaries and
  • government agencies,

crypto investors should, however, have "watertight" documentation of the origin of their assets at hand. Otherwise, they may not be able to proceed with some business transactions at all.

In other words, if you lack documentation, you may be treated like a potential criminal. Missing out on interesting investment opportunities in this way is the least of your problems.

4. International taxation

International taxation - in particular the sword of Damocles that is exit taxation -, visa issues and international powers of attorney are topics that concern our clients in the international sector. We provide advice, solutions and guidance on these topics so that our crypto investors can enjoy their new mobility.

5. Friends & Family

  • The joint venture for a promising innovation,
  • a civil-law partnership with a significant other,
  • a marriage contract,
  • donations or gifts and
  • the care and support of parents and other companions 

are often family- and friend-related issues that play a role when finances and personal matters intermingle. Do not worry, we will stand by you. We keep a clear head for crypto investors when things get personal.

6. Emergency representation

Inability to act threatens assets and companies. If you are temporarily unable to act, your assets and possibly also your company are at risk because things have to be initiated and decided. This ranges from everyday tasks to payment transactions to the put option they have in mind for a particular market constellation.

If you are unable to act because you have been unexpectedly incapacitated due to health problems or are stuck in another country, you need someone who you have informed about what actions to take and who you have also authorized to act on your behalf in good time.

7. Real estate purchase

You can trust a notary you do not know and hope that he/she has drafted your real estate purchase agreement equitably and in your best interest. The alternative is to have us draft and/or review your plan and agreement to determine what strengths and weaknesses it contains for you.

In some cases, an adjustment is mandatory. In other cases, just knowing the vulnerabilities is enough for you to plan accordingly and make an informed decision. It is worth it.

8. The worst-case scenario

Each of us must be prepared for something we did not anticipate to happen. This includes one's own death, for which hardly anyone is prepared because we all still have so much ahead of us. If - against all expectations - something does happen, the basics should be taken care of so that, in addition to grieving, your loved ones will not have to deal with issues you did not arrange for or resolve.

Many of our clients and business partners share this same perspective after discussions with us. In our consultation, we will present you with the simplest, but immensely effective steps you can take to see to the circumstances.

9. Do good

Our clients are usually among the major crypto winners. Many of them want to do something good for others. They feel that they have been gifted with their abilities and likely by chance, and they want to use their values and assets to do something good for others.

This is often particularly easy on account of the tax advantages of the nonprofit status - if you know how to make use of them. Our NPO team for German nonprofit law and taxation is well-positioned, experienced and prepared to guide you on your philanthropic journey.

Our advisors for successful crypto investors

As a crypto investor, do you want to secure, manage and, where applicable, further increase your crypto assets? Do you want to invest in a property, provide benefits for your family and create security for a worst-case scenario? Our experienced team will gladly advise you! Your contact persons are:

You can contact us via e-mail (info@winheller.com) and by phone (+49 69 76 75 77 80).

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WINHELLER is represented in the 2022 Best Lawyers Ranking with four lawyers recommendations.

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Awards

Juve AwardLegal 500 Germany 2019
azur100: Top Employer for Lawyers 2021