By Marco BösingWhat Is the Abgeltungssteuer?
The Abgeltungssteuer is a flat tax on capital gains in Germany that has been in effect since 2009. It is levied at 25% on all income from capital assets — including interest, dividends, and capital gains from securities trading. Adding the solidarity surcharge (5.5% of the tax) and, where applicable, church tax, the total effective rate ranges from approximately 26.375% to 28.625%.
The defining characteristic of the Abgeltungssteuer is its withholding nature: domestic banks and brokers automatically deduct and remit the tax to the tax authorities. This generally satisfies the tax obligation on these earnings, meaning they do not necessarily need to be reported in the income tax return — unless the personal tax rate is below 25% or losses need to be offset across accounts.
How Is the Abgeltungssteuer Calculated?
The calculation is applied to the net gain of each individual transaction:
- Capital gain: Sale price minus purchase price minus transaction costs
- Abgeltungssteuer: 25% of the capital gain
- Solidarity surcharge: 5.5% of the Abgeltungssteuer (= 1.375% of the gain)
- Church tax (if applicable): 8% or 9% of the Abgeltungssteuer
On a capital gain of 1,000 euros, the tax burden without church tax amounts to 263.75 euros (26.375%), leaving a net gain of 736.25 euros.
Saver's Allowance (Sparerpauschbetrag)
Every taxpayer receives an annual saver's allowance of 1,000 euros (2,000 euros for married couples filing jointly). Capital gains up to this threshold remain tax-free. For active traders, however, this allowance is typically exhausted quickly.
Abgeltungssteuer and Active Trading
Several important considerations apply specifically to active traders:
Loss Offsetting
Losses from stock sales can only be offset against gains from stock sales (stock loss pool). Losses from other capital investments (e.g., ETFs, bonds) fall into the general loss pool and can be offset against all capital income except stock gains.
Derivatives
From 2021 to 2024, a loss offset restriction for derivatives (Termingeschaefte -- futures, options, CFDs) capped deductible losses at 20,000 euros per year. The German Federal Fiscal Court (Bundesfinanzhof) ruled this restriction unconstitutional, and it has been abolished. Losses from derivatives can now be fully offset again.
Foreign Brokers
With foreign brokers, the Abgeltungssteuer is not automatically withheld. Traders must report their gains independently in their tax return and pay the tax through their income tax filing. This applies to virtually all futures and prop trading accounts.
Alternatives to the Abgeltungssteuer
Favorable Assessment (Günstigerprüfung)
If the personal income tax rate is below 25%, a favorable assessment (Günstigerprüfung) can be requested in the tax return. The tax office will then apply the lower personal rate.
Trading GmbH
For traders with high turnover, a Trading GmbH can offer tax advantages. Under certain conditions, effective tax rates below 30% can be achieved within a GmbH.
FAQ
Do I need to report the Abgeltungssteuer in my tax return?
With domestic brokers, the tax is already settled and does not necessarily need to be declared. However, reporting is required when using foreign brokers or when offsetting losses across multiple accounts.
What is the exact rate of the Abgeltungssteuer?
The Abgeltungssteuer is 25% plus a 5.5% solidarity surcharge, totaling 26.375%. With church tax, the rate ranges from 27.82% to 28.625% depending on the federal state.
Does the Abgeltungssteuer apply to futures trading?
Yes, profits from futures trading are subject to the Abgeltungssteuer. A previous loss offset restriction for derivatives (20,000 euros per year, 2021-2024) was ruled unconstitutional by the German Federal Fiscal Court and is no longer in effect.