If you are a foreigner (US citizen) living abroad in Germany to attend a school, what kinds of taxes are required if you are also involved in the following business: You receive your own/family money from a United States Bank to a German bank, in order to purchase bitcoin at a german bitcoin exchange, then cash out the bitcoin into american banks. It seems like since cashing out happens into american banks that USA taxes are required, but what German taxes are required for this? Thanks

  • You are liable for US taxes on your personal income because you are a US citizen. It doesn't matter where the banks are. – phoog Feb 25 '17 at 20:05
  • I am curious about German taxes, because German banks will record money getting transferred in, and it will look like income correct? What would German tax officials want – Sam Adamsh Feb 25 '17 at 20:06
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    I'm not sure. To show that it's not income you can just show that you own the source account. The thing I don't know about is the rules surrounding financial speculation, which this seems to be. You would probably owe tax on any profit because you would be a German resident. – phoog Feb 25 '17 at 21:28

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