Investing in Germany
Taxes, allowances and pension rules for long-term investors in Germany. Amounts in euros; every figure with its source and an as-of date.
Key figures
26.375%Capital gains tax incl. solidarity surcharge25 % flat tax plus 5.5 % solidarity surcharge on the tax; church tax comes on top.Source: § 32d EStG ·
€1,000 / €2,000Saver's allowance per year, single / jointGains up to this amount stay tax-free with an exemption order at your bank.Source: § 20 Abs. 9 EStG ·
30%Partial exemption for equity fundsFunds with at least 51 % equities; 15 % for mixed funds.Source: § 20 InvStG ·
€2,000Tax-free monthly wages after retirement ageAktivrente, since January 2026: up to 24,000 € a year (2,000 € a month) under § 3 no. 21 EStG; employment subject to social insurance only.Source: § 3 Nr. 21 EStG ·
How gains are taxed
Gains and distributions from securities are taxed at a flat 25 %, plus a 5.5 % solidarity surcharge on the tax, which makes 26.375 % before church tax. For equity funds and ETFs, 30 % of the gain stays tax-free (partial exemption). The saver's allowance is deducted before any tax is charged, provided an exemption order is in place at the bank.
Accumulating funds are taxed once a year on a notional lump sum (Vorabpauschale) as long as the base rate is positive; the amounts paid are credited against the tax due when you sell.
Example: selling an equity ETF with a €3,000 gain
Gain€3,000
Partial exemption (30%)−€900
Saver's allowance−€1,000
Taxable€1,100
Tax (26.375%)€290.13
Source: § 32d EStG, § 20 InvStG, § 20 Abs. 9 EStG · Pension
- The statutory retirement age rises step by step to 67 for everyone born in 1964 or later.
- Since January 2026, wages earned after reaching retirement age are exempt from income tax up to 24,000 € a year, that is 2,000 € a month (Aktivrente, § 3 no. 21 EStG).
- In March 2026 the Bundestag passed the reform of state-subsidised private pension saving: from 2027 an Altersvorsorgedepot replaces Riester and allows subsidised ETF saving without a capital guarantee.
Latest changes in Germany
GermanyFrühstart-Rente cabinet approvalRetirementGermanyEU payment-for-order-flow ban fully effectiveRegulationGermanyBundestag passes Altersvorsorgedepot reformRetirementGermanyAktivrente: €2,000 a month of wages tax-free after retirement ageTax lawGermanyDerivatives loss-offset cap abolished (JStG 2024)Tax law
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