What is the tax on the capital gain by trading stock in Germany? And how do I pay it?
- 25% + Soli and Church Tax. The first 801 € (if you are single and 1602 € if a married couple) on realised capital gains are free. It will automatically be deducted by your German broker/bank when realising earnings.
- It’s automatically deducted by the bank/broker. They will spare you of the first 801€ if you give them a “Freistellungsauftrag”. Talk to your bank on how to do that.
- It gets added to your income. Unless you hold a stock or whatever that generates no dividend. Like currency trading after the first year is totally tax-free, or income-producing asset will be tax-free after 10yrs.