How capital gains tax works in Germany
Germany taxes most financial investment gains under the Abgeltungsteuer regime. For shares, funds, bonds and similar securities, the flat rate is 25% plus 5.5% solidarity surcharge, and church tax may also apply.
The annual saver allowance is EUR 1,000 for single taxpayers and EUR 2,000 for joint filers. Banks usually withhold the tax automatically, which is why many investors never file a separate capital gains return for domestic portfolios.
Other gains can fall under private-sale rules instead of the securities regime. That matters for crypto, certain movable assets and real estate, where the holding period and use of the asset can decide whether any tax is due.
Tax rates at a glance
- Securities gains tax
- 25%Abgeltungsteuer
- Solidarity surcharge
- 5.5%
- Church tax
- 8% / 9%
- Saver allowance
- EUR 1,000 / EUR 2,000
- Private-sale holding period
- 1 year / 10 years
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsCrypto holdersTradersHigh earnersFamily offices
Watch out for
- Crypto is usually not taxed like listed shares. German private-sale rules can tax gains if the holding period is under one year and the annual profit exceeds EUR 1,000.
- Real estate sales can be tax-free only after the 10-year holding period, or earlier if the property was used as a qualifying private residence.
- Foreign withholding tax can still bite before the money reaches Germany, so treaty relief and foreign tax credits matter.
- Special rules apply to significant shareholdings of 1% or more.
Frequently asked questions
Does Germany tax capital gains?
Yes. Securities gains are usually taxed at 25% plus solidarity surcharge, and some other assets can be taxed under separate private-sale rules.
Are crypto gains taxed in Germany?
Often yes, if the private-sale holding period is under one year and the annual profit exceeds EUR 1,000. Long-held crypto can be tax-free under the private-sale rules.
Are stock market gains taxed in Germany?
Yes. Banks usually withhold the tax automatically on dividends and many securities gains, subject to the saver allowance and any treaty or credit rules.