Capital gains tax (Abgeltungsteuer)
Germany's flat tax on investment income: 25 % plus solidarity surcharge, i.e. 26.375 %, plus church tax if applicable.
In short
As of 5 October 2026The Abgeltungsteuer is Germany's flat-rate tax on investment income, meaning capital gains, dividends and interest. It is 25 percent plus a 5.5 percent solidarity surcharge on top, 26.375 percent in total, or just under 28 percent with church tax. German banks deduct it automatically. On 500 euros of taxable gains, it comes to about 131.88 euros.
In Germany, gains from stocks and ETFs, dividends and interest are subject to Abgeltungsteuer, a flat 25 %. A 5.5 % solidarity surcharge is added on top, giving 26.375 %. If you pay church tax, the total is just under 28 %.
German banks deduct the tax automatically and pay it to the tax office. Income up to the saver's allowance stays tax-free if you have filed a tax exemption order. Losses are offset against gains, although losses from selling stocks only against gains from selling stocks.
Example: you sell stocks with a 1,500-euro gain and your 1,000-euro allowance is unused. 500 euros are taxed, so the tax is about 131.88 euros without church tax. Foreign brokers may not withhold it, so you declare it yourself.
Related terms
Sources
- Einkommensteuergesetz (EStG), § 32d Gesonderter Steuertarif
- Solidaritätszuschlaggesetz (SolzG), § 4
- Einkommensteuergesetz (EStG), § 20 Kapitalvermögen
As of 5 October 2026 · Educational content, not investment or tax advice.