🇩🇪 Moduł 4 : Podatki Niemcy

Withholding Tax 25% + Solidarity Surcharge + Church Tax

A uniform flat tax on all capital income since 2009. Applies equally to interest, dividends, capital gains and derivatives.

Loss Set-Off Pools

Germany has two separate pools — the critical point: stock losses from Pool 01 cannot be offset against gains from Pool 02 (§ 20 para. 6 sentence 4 EStG). This silo separation particularly affects swing traders.

Derivative Loss Cap (abolished)

Update: The €20,000 cap on losses from forward transactions (§ 20 para. 6 sentence 5 EStG) and the cap on losses from debt defaults (sentence 6) were retroactively repealed by the Annual Tax Act 2024. After the Federal Fiscal Court (BFH) raised serious constitutional doubts in 2024, the legislature followed and removed the restriction entirely. Losses from options, futures and CFDs are once again unlimited within the capital income framework (the silo separation between stocks and other capital income remains). Good news for all options traders!

FIFO Principle

First In First Out: someone who bought 100 Apple shares in 2020 for $100 and then another 100 in 2024 for $180 — when selling 50 shares, the first tranche at $100 is taxed (higher gain). No choice in Germany. In the US, alternatives are available (LIFO, specific identification, average cost); in Germany, FIFO is mandatory.

Loss Carryforward

Unlimited in time, but not available as a carryback. The pool separation (stocks vs. general) is maintained when carried forward to the following year. The former separate derivatives pool no longer exists since the Annual Tax Act 2024 — derivative losses flow into the general loss pool.

Broker Tax Withholding

German brokers (Comdirect, DKB, Trade Republic, Flatex, Scalable) automatically withhold the flat tax and issue the annual tax certificate in January/February. Foreign brokers (IBKR, Swissquote, Saxo): you must complete Appendix KAP manually — often thousands of individual items for active traders.

Example — Loss Offsetting Under Current Law

ETF Options & Assignment — the detailed tax picture

Investors who write cash-secured puts or covered calls on US ETFs such as PPLT (Platinum Trust), COPX (Copper Miners), GDX (Gold Miners) or EWY (MSCI South Korea) use a legal workaround to the PRIIPs regulation: US ETFs cannot be purchased directly by EU retail investors since 2018, but they can be obtained via options assignment. Three separate tax events arise, which must be counted correctly.

1. Options premium POOL 02
   The premium received on a short put is a forward transaction gain — it falls into Pool 02 (General) and is taxable at 26.375%. Even on assignment, the premium remains separately as a gain.
2. Assignment → ETF booking Strike × contract size
   The broker books the ETF at the strike price as the cost basis (100 shares per standard option). The premium does not reduce this cost basis — it was already taxed in step 1. Common broker error: German brokers incorrectly set Strike − premium as the basis.
3. ETF sale → ETF tax pool with partial exemption
   On a later sale, the gain/loss flows into the General Pool (ETFs are not "stocks" in the tax sense). In addition, the partial exemption applies depending on fund type (see below) — a significant advantage.

The four example ETFs classified for tax purposes — private vs. corporate

§ 8b KStG applies only to corporate participations directly held stocks — not to fund units. Instead, § 20 InvStG applies for corporate investors with its own partial exemption rate.

₿ Bitcoin ETF (IBIT) vs. direct Bitcoin — two completely different tax worlds IBIT & Co. (also FBTC, ARKB, BITB) are currently treated in Germany mainly as other capital claims / certificates under § 20 para. 1 no. 7 EStG — the one-year holding period of § 23 EStG does not apply, because you do not hold Bitcoin directly but a trust unit. Consequence: full rate 26.375% for private individuals, even after 5 years of holding. Direct Bitcoin (via exchange or cold wallet) on the other hand falls under § 23 EStG — tax-free after a 1-year holding period for private individuals (the most important lever in German tax law!). In a GmbH/foundation, the holding period is irrelevant — crypto is always fully taxable (GmbH ~29.83%, foundation 15.83%), regardless of whether held in an ETF wrapper or directly. The decision "IBIT or direct" therefore flips radically depending on the legal structure.

💡 Partial exemption in a corporate entity is the real lever Private individual & equity ETF: 30% exempt → 18.46% effective instead of 26.375% (saving ~8 pp). Corporate entity & equity ETF: 80% exempt (§ 20 para. 1 InvStG for business investors) → GmbH ~5.97% · foundation ~3.17%. For mixed funds (> 25% equities): PE 15% private / 40% corporate. Real estate funds: 60/80% in both cases. Pure bond/money market funds: 0% PE.

💡 Why ETFs in a corporate entity are more expensive than individual stocks Directly held stocks in a GmbH: § 8b KStG → 1.54% effective. The same equity basket packaged as an ETF: § 20 InvStG → 5.97%. That is almost 4× more expensive. Investors who build a GmbH structure therefore often prefer to buy individual stock baskets themselves instead of via ETFs — or use ETFs only in areas where § 8b does not apply (e.g. bond ETFs). For the private individual the ratio is reversed: ETF (18.46%) beats individual stock (26.375%).

Taxation via corporate entity & foundation

Investors who trade regularly and at larger volumes encounter the limits of the flat withholding tax: the stock silo traps losses, every euro of gain is taxed immediately, and withdrawals remain personal consumption. Legal structures such as the asset-managing GmbH or the family foundation open several levers simultaneously:

• Participation exemption (§ 8b KStG) — 95% of stock capital gains and qualifying dividends are tax-exempt. Effective burden only ~1.54% (GmbH) or ~0.79% (foundation, because no trade tax).
• Accumulation — profits remain in the structure and reinvest at the full gross amount. No 26.375% flat tax siphoning off performance every year.
• Progression protection on large portfolios (foundation only) — a foundation pays a flat 15.83% regardless of volume. The wealth tax surcharge (45% income tax above ~€278k) and progression on large capital income are structurally avoided. The larger the portfolio, the greater this lever compared to personal assessment.
• Personal mobility abroad (foundation only) — since the founder no longer holds an ownership interest after establishment, no exit taxation under § 6 AStG applies. Founder and beneficiaries can move freely without silent reserves being taxed fictitiously. GmbH shareholders with ≥ 1% participation, on the other hand, carry exit taxation with them.

Each lever focuses on a different priority: the GmbH is the tax-efficiency machine for active equity traders with withdrawal needs. The foundation is the long-term and mobility vehicle for large portfolios and multi-generational planning.

Criteria Matrix — Private vs. GmbH vs. Foundation

The 14 most important decision dimensions in direct comparison — from nominal tax rate to formation costs to exit frictions. The matrix shows why each structure has its own area of application.

💡 Why the foundation is noticeably cheaper under § 8b A GmbH is always commercial by legal form (§ 2 para. 2 GewStG) — trade tax always arises, even for purely asset-managing activity. § 8b KStG also applies to trade tax (95% exemption), but the remaining 5% is additionally burdened by trade tax → 1.54% effective. A family foundation is not a commercial enterprise for tax purposes → no trade tax → only 0.79% effective on stock gains. On minor holding dividends (where § 8b para. 4 removes the exemption) the difference becomes even more pronounced: GmbH ~29.8% vs. foundation 15.83%.

💡 Foundation = personal mobility & progression protection An often overlooked advantage of the family foundation: since the founder no longer holds an ownership interest after establishment, no exit taxation under § 6 AStG arises on relocation abroad. Founder and beneficiaries can move freely without triggering tax on silent reserves — GmbH shareholders with ≥ 1% participation face exactly that. Second effect: the foundation pays a flat corporate tax of 15.83% — regardless of portfolio volume. The wealth surcharge (45% income tax above ~€278k income) and progression on large capital income are structurally avoided.

⚖️ Commercial securities trading (trap for GmbH): If the GmbH exceeds the threshold to become a commercial securities dealer through high turnover frequency, external borrowing or public appearance, § 8b para. 7 KStG no longer applies — the participation exemption is lost entirely. Consequence: full rate on all income instead of 1.54%. This boundary is to be clarified in each individual case — seek a tax advisor or binding ruling from the tax office.

🧾 Substitute inheritance tax on family foundation: Every 30 years the foundation's assets are treated for tax purposes as if inherited by two fictitious children — inheritance tax is levied on this deemed transfer. This must be included in the ROI calculation, especially if the foundation is intended to hold assets for only 30–40 years.

🏛️ Ongoing costs strongly state-dependent: Which accounting format is required depends on the federal state in which the foundation is domiciled. In Bavaria, foundation supervision is lean — income is reported primarily to the tax office. In Thuringia, a simple profit and loss statement is often sufficient for supervision. In NRW, Baden-Württemberg and other states a full balance sheet is expected. Effect: actual annual operating costs range from ~€500 (Bavaria) to ~€4,000 (NRW/BW). When choosing the domicile, it is worth checking the relevant state foundation act.

Taxation in other countries

Investors who trade via IBKR or another foreign broker, or who live as expats in other jurisdictions, need a quick overview of foreign regimes. The four country cheatsheets show rates, pool structure, pitfalls and forms compactly on one printable page each:

Last reviewed: April 2026