Interesting. Does this apply when you sell bitcoins on localbitcoins.com and you withdraw your funds to a foreign bank account [euro currency]?
It applies when you sell on localbitcoins.
> you withdraw your funds to a foreign bank account [euro currency]
If you are selling BTC (or any coin) into EURO, then capital gains applies. Doesn't matter if you haven't converted into USD, but you'd have to calculate any USD gains. If you just mean withdrawing already converted funds (in USD/EURO) from localbitcoin to a foreign bank account, then this isn't a tax event. (unlikely exception, if there was a gain in exchange rate of more than $200).