All terms
Saver's allowance (Sparerpauschbetrag)
The annual tax-free allowance for investment income: 1,000 euros for singles, 2,000 euros for jointly assessed couples.
Up to a certain limit, your investment income is tax-free in Germany. This saver's allowance (Sparerpauschbetrag) is 1,000 euros per year for single people and 2,000 euros for married couples or civil partners assessed jointly.
For your bank to apply it, you need to file a tax exemption order (Freistellungsauftrag). Without one, the bank deducts capital gains tax right away, and you can only reclaim it through your tax return.
Example: you receive 300 euros in dividends and make a 500-euro price gain. That is 800 euros in total, below 1,000 euros. With an exemption order in place, you pay no tax.