What is the tax on the capital gain by trading stock in Germany?

Stocks | tax percentage on the capital gain by trading stock

Question

What is the tax on the capital gain by trading stock in Germany? And how do I pay it?

Answers

  • 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.

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Stocks | tax percentage on the capital gain by trading stock
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