Taxes on investing in Germany (2026)
Germany has one flat tax for almost all investment income: the Abgeltungsteuer.
| Tax on gains, dividends and interest | 25% flat |
| Solidarity surcharge | 5.5% of the tax, so 26.375% in total |
| Church tax (if you’re a member) | 8% or 9% of the tax, roughly 27.8–28% in total |
| Tax-free allowance (Sparerpauschbetrag) | €1,000 per person, €2,000 for jointly assessed couples |
How to use your allowance
Give your broker a Freistellungsauftrag (exemption order) and it won’t withhold tax until your gains pass the allowance. You can split the €1,000 between several banks and brokers, as long as the total stays within the limit. Without one, tax is withheld from the first euro and you’d have to reclaim it in your tax return (Anlage KAP).
ETFs: Teilfreistellung and Vorabpauschale
- Teilfreistellung: for equity ETFs (at least 51% shares), 30% of the returns are tax-free. Mixed funds get 15%, real-estate funds more.
- Vorabpauschale: accumulating ETFs are taxed on a small notional amount each January, based on the Bundesbank base rate. It’s usually covered by your allowance; if not, your broker deducts it from your cash account, so keep a little cash there.
German vs foreign brokers
German brokers and banks withhold the tax automatically. Foreign brokers usually don’t: you declare the income yourself in Anlage KAP of your annual tax return.
Local tips
- ETF savings plans (Sparpläne) are hugely popular in Germany, and many brokers offer them from a few euros a month with no order fees.
- Use the €1,000 allowance every year: if your gains are below it, selling and re-buying can lock in tax-free gains.
- Neobrokers like Trade Republic and Scalable Capital compete hard with direct banks like comdirect, ING and Consorsbank. Compare savings-plan costs and how they handle the Vorabpauschale.
This is general information, not tax advice. Check your situation with a Steuerberater.
Sources
Brokers you can use from Germany
Researched October 2026. Listed for information, not as a recommendation. Fees change often, so compare them on each broker's official pricing page.
Local brokers
International platforms
- Real shares & ETFsYes
- CFDsYes
- Regulated byCySEC (EU), FCA (UK), ASIC (AU) +2
- Real shares & ETFsYes
- CFDsYes
- Regulated byKNF (PL), CySEC (EU), FCA (UK) +2
- Real shares & ETFsYes
- CFDsYes
- Regulated byFCA (UK), CySEC (EU), FSC (BG) +1
- Real shares & ETFsYes
- CFDsNo
- Regulated byBaFin / Bundesbank (DE)
- Real shares & ETFsYes
- CFDsYes
- Regulated bySEC / FINRA (US), FCA (UK), Central Bank of Ireland (EU) +5
- Real shares & ETFsYes
- CFDsNo
- Regulated bySEC / FINRA (US), CFTC / NFA (US), SIPC member
About CFDs: some platforms above also offer CFDs. These are leveraged products and most retail CFD accounts lose money. For long-term investing, make sure you are buying the real shares or ETF units.
Your three routes
Why you may not be able to buy US ETFs
EU rules (PRIIPs) require a standard Key Information Document for many retail products. Most US-domiciled ETFs don't publish one, so brokers serving retail clients in Germany usually block them. The usual alternative is UCITS ETFs: European-domiciled funds tracking the same indexes.
The costs that matter
See how fees change the end result with the compound interest calculator.
Who protects you
The BaFin supervises investment firms in Germany. Before opening an account, find the broker in the official register, or confirm its licence lets it serve residents of Germany. No clear regulator is a red flag.
As an EU country, Germany follows EU investor-protection rules (MiFID II), and the EU compensation framework protects at least €20,000 per investor if a firm fails while holding your assets.