Germany Capital Gains Tax 2025: Investment Gains, Crypto, and Real Estate
Germany Capital Gains Tax Guide for 2025
Germany taxes most investment gains at a flat Abgeltungsteuer rate of 25% plus a 5.5% solidarity surcharge (effective 26.375%) and, if applicable, church tax. Understanding allowances, reporting, and bank documentation is essential to optimise after-tax returns.
Freistellungsauftrag and Annual Allowances
Every taxpayer receives an annual €1,000 saver’s allowance (€2,000 for married couples) that offsets interest and capital gains. File a Freistellungsauftrag with each bank to automatically apply the allowance. Without it, banks withhold tax on the full gain, requiring a refund via your tax return.
Shares, ETFs, and Funds
Banks apply withholding tax at sale and report transactions on the annual Steuerbescheinigung. Use loss carryforwards to offset future gains; loss pots are segregated for shares and other assets. For accumulating funds, partial deemed distributions (Vorabpauschale) may apply—ensure your broker reports them correctly.
Cryptocurrency and Private Sales
Crypto assets fall under private sale rules (private Veräußerungsgeschäfte). Gains are tax-free if holding periods exceed one year. Otherwise, profits above €600 annually are taxable at your individual rate and must be reported on Schedule SO. Keep detailed transaction histories to support calculations.
Real Estate and Speculation Period
Private property sales are tax-free after a ten-year holding period or when the property is owner-occupied in the year of sale and the two preceding years. Investment properties sold earlier trigger taxation at personal income rates; track acquisition costs, renovations, and incidental expenses to reduce taxable gains.
Reporting and Documentation
Collect annual tax certificates, trade confirmations, and evidence of fees. Digital brokers often provide downloadable CSV or PDF summaries. File any remaining gains via the Anlage KAP or Anlage SO sections of your tax return. For complex portfolios, rely on tax software or a Steuerberater to reconcile reports.
Tax Planning Tip: Harvest losses before year-end, allocate allowances across banks, and consider municipal deductions from church tax if your effective rate exceeds 26.375%.