Taxes in Germany for international residents
A practical map of tax status, investment income, withholding, allowances, fund rules and cross-border questions.
Start with the facts
Status, event, withholding and assessment
Direct answer
A broker deduction is not the whole tax analysis
German banks and brokers may withhold tax on certain investment income, but the final position can still depend on tax residence, income classification, losses, allowances, fund rules, foreign income and treaty questions.
Citizenship, immigration status, account location and tax residence are not interchangeable. This hub provides general orientation only; it cannot determine a personal filing position or replace qualified tax advice.
Review sequence
Five checks before relying on a tax estimate
Establish status
Identify residence, relevant periods and possible source-state claims.
Classify the event
Interest, dividend, fund distribution, sale, transfer or another event?
Trace withholding
Record what each institution deducted and in which country.
Test adjustments
Allowances, losses, fund rules and foreign tax can change the result.
Document and file
Keep statements, acquisition data and evidence; obtain help where needed.
Capital income
Rate, allowance and withholding answer different questions
Separate rate
Section 32d EStG states a 25% rate for covered capital income. Statutory exceptions, solidarity surcharge, church tax and foreign-tax questions can alter the final result.
Saver allowance
Section 20(9) EStG currently sets a €1,000 saver allowance, or €2,000 for jointly assessed spouses. The provision and personal eligibility must be checked for the relevant year.
Freistellungsauftrag
An exemption order can affect withholding at an institution within the statutory framework. It is not a universal tax-residence or cross-border conclusion.
Funds and ETFs
Fund taxation adds another layer
Distributions, disposals and fund-specific rules can produce different taxable amounts. Section 20 InvStG provides partial-exemption rules whose application depends on the statutory fund category and investor context.
Annual parameters and classifications can change. This hub therefore does not publish an unverified Vorabpauschale value or assume that every ETF receives the same treatment.
Cross-border questions
Residence and treaty facts come first
Germany’s Federal Ministry of Finance explains that international tax law combines domestic rules with double-taxation agreements that allocate taxing rights between countries.
- Identify the relevant residence and source periods.
- Keep foreign statements and tax evidence.
- Check the applicable treaty rather than using a generic expat answer.
- Escalate material uncertainty to a qualified tax professional.
Existing scenario tool
Model a simplified German capital-gains case
German capital gains tax calculator
Estimate a simplified terminal-sale result using visible inputs for gains, eligible allowance and fund partial exemption. Treat the output as a scenario, not a filing result.
Open the calculator ↗Detailed guides
Published and planned tax explainers
Published pages are linked. Remaining summaries describe future coverage and are not presented as active destinations.
Capital gains tax in Germany
Rates, allowance, withholding, fund exemptions and worked examples.
Read guide ↗ETF tax in Germany
Fund classification, partial exemptions and annual-tax mechanics.
Freistellungsauftrag
What the instruction does, limits and practical record checks.
Primary sources