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Celerity

(55,108 posts)
32. Capital gains tax in Germany (Kapitalertragsteuer ie KESt)
Wed Jun 3, 2026, 04:47 PM
17 hrs ago
https://taxsummaries.pwc.com/germany/individual/income-determination

snip

Capital gains from financial investments (e.g. sale of shares) are subject to a flat tax rate of 25% plus 5.5% solidarity surcharge (in total 26.375%, plus church tax if applicable), which is generally withheld at source automatically upon distribution of the gains. Related expenses cannot be deducted. Capital gains qualify for the 'investor's allowance' of EUR 1,000 per taxpayer and year for the total of all financial investment income. This amount is doubled in the case of married taxpayers filing jointly. Special rules apply on the taxation of capital gains from the sale of a significant interest in a corporation (1% or more).

Special partial tax exemptions apply on capital gains from the sale of mutual funds units, depending on the nature of the fund.

Other capital gains are taxable in Germany at individual progressive rates only if the sale is within one year (for movable assets) or ten years (for real property) after the purchase date. Since 2024, these capital gains are only taxable if the profit exceeds EUR 1,000 (previously EUR 600) per year in total. Further tax relief may be applicable under specific conditions if the property was used for private purposes.



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Capital gains tax in Germany (Kapitalertragsteuer ie KESt) Celerity 17 hrs ago #32
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