Germany.

Listed shares

26.375% before church tax

A private listed-share gain normally uses 25% investment tax plus a 5.5% solidarity surcharge on that tax. A holding of at least 1% can move into the owner-company rules instead. The yearly saver allowance can shelter part of the gain.

Fund and ETF units

26.375% on 70% for a qualifying equity fund

A qualifying equity fund leaves 30% out of tax. The remaining 70% of its distributions, annual fund charge and sale gain enters the tax calculation. Other fund types use different percentages.

Holding period and allowances

No general long-holding relief; €1,000 saver allowance

Holding shares or fund units for longer does not reduce the rate. The saver allowance is €1,000 for one person and €2,000 for a couple filing jointly. The equity-fund exemption depends on the type of fund, not how long you hold it.

Losses

Share losses can offset only share gains

Investment losses can carry forward, but the category matters. A loss on a share disposal can offset only share-disposal gains rather than interest, dividends or every other capital return.

Foreign listings and US ETFs

Same German rate; source tax and fund type separate

A foreign listing does not change the German investment rate. A pure share-sale gain is usually taxed only where you live under the treaty. Tax already taken from dividends is a separate credit or reclaim. An ETF's fund type decides how much of its return is taxed.

Advance lump sum

Possible annual tax before you sell

A profitable fund can create a taxable amount when its cash distributions fall below a statutory return. The charge cannot exceed the fund's actual growth. Amounts taxed this way reduce the taxable gain when you eventually sell.

German-company dividend

26.375% before church tax

A German-company dividend normally has 25% investment tax withheld plus the 5.5% solidarity surcharge on that tax. The saver allowance can apply, and church tax can add a separate amount for members.

Foreign listed-share dividend

26.375% plus tax taken abroad

Germany applies the same investment-income rate to a foreign dividend. Tax taken abroad can reduce the German bill only as far as zero. Any excess needs treaty relief or a reclaim abroad.

Holding size and active owners

Default rate at any size; elective 60% method

The flat investment rate remains the default. An election can make 60% of a dividend taxable under the income-tax bands if the owner holds at least 25%. The same choice can apply from 1% when the owner also has a qualifying professional role.

Fund distribution

26.375% on 70% for a qualifying equity fund

A qualifying equity fund leaves 30% of its distribution out of tax. The remaining 70% enters the investment-income calculation.

New-resident treatment

No general new-resident exemption

Germany has no general new-resident exemption for foreign dividends. Tax on worldwide income starts with residence. Treaty relief can reduce double tax.

There is no separate rule here. Use the general foreign-income case, then check what the treaty says about the country paying the money.

Sale for fiat

Income-tax bands within one year; exempt after more than one year

A private sale within one year is added to your other taxable income. A qualifying sale after more than one year is exempt. The original purchase date still counts after a move.

Crypto-to-crypto exchange

Same private-disposal rule; new one-year clock

Exchanging one token for another is a disposal at market value. The acquired token starts a new one-year holding period and takes that market value as cost.

Spending

Same private-disposal rule

Using a token to buy goods or services is a disposal. Market value measures the proceeds, so the one-year period and €1,000 exemption threshold still matter.

Holding relief and losses

Exempt after one year; €1,000 short-term threshold

The former ten-year extension for lending or staking no longer applies. Losses within the private-disposal category can offset only gains in that category and follow their own carry rules.

Staking and lending rewards

Income-tax bands on receipt

Staking and lending rewards can be taxable income when received. This income category has a €256 yearly exemption. The value taxed on receipt becomes the new token's purchase cost and starts its one-year holding period.

Mining and airdrops

Income or business profit, then a later disposal

Mining or validation can be other income or a commercial business, depending on scale and organisation. An airdrop linked to a service can be income. Another airdrop can start with no purchase cost, which affects the gain when it is later sold.

Private or commercial activity

Business rules replace the one-year exemption

A private holder uses the private-disposal rule. A commercial token activity falls into business income, where the one-year exemption does not apply and trade tax can also arise.

Wealth and departure tax

No annual net-wealth tax or crypto exit charge

Germany has no current annual net-wealth tax. The individual exit-tax rule targets qualifying company shares, not an ordinary private crypto holding.

New-resident treatment

No new-resident rule; old holding time continues

Germany does not provide a new-resident crypto exemption. Original purchase cost and the original holding date continue after arrival, which can make a qualifying private sale exempt once the more-than-one-year test is met.

All 34 crypto rules, side by side →

German statutory or company pension

Income-tax bands on the taxable portion

A German statutory pension is taxed on its statutory taxable share, which depends on the cohort. A company pension can instead be employment income. The personal rate follows the total taxable income.

Foreign state pension

Treaty and pension class control

A foreign state pension can be taxable in Germany, exempt with progression, or allocated to the paying state under the treaty. The exact pension article controls.

Foreign occupational or private pension

Income-tax bands on the taxable portion

Germany identifies the scheme type before calculating tax. A life annuity may tax only its income share, while an occupational payment can follow a different rule. The treaty then decides which country can tax it.

Government or civil-service pension

Separate treaty article

A government-service pension commonly remains taxable in the paying state, subject to the treaty's nationality exception. Where the treaty allows it, Germany can use an exempt pension to set the rate on the person's other income.

Lump sum

Exact foreign result not pinned

No single rate is pinned here for a foreign pension lump sum. The scheme type, contribution history and treaty must be checked before treating it like a periodic pension.

New-resident treatment

No general new-resident exemption

Germany does not provide a general special rate or exemption for a foreign pension merely because the recipient has just become resident.

Company profit

Often about 30% including trade tax

Corporation tax, solidarity surcharge and municipal trade tax together often produce a rate around 30–33%. A foreign company can also become German-resident when its main decisions are made in Germany.

German-company distribution

26.375% by default after company tax

A distribution comes from profit after company tax and then uses the owner's investment- income rate. A qualifying active owner can elect the 60%-taxable method instead.

Foreign-company distribution

German dividend tax plus tax taken abroad

A foreign-company dividend follows the same personal investment-income rules. Tax taken abroad and treaty relief remain separate. The exemption available to some company shareholders does not automatically pass to an individual owner.

Foreign entity classification

Classification before extraction rate

Germany compares the foreign vehicle with German legal forms to decide whether it is a company or transparent arrangement. That choice changes whether the resident has a dividend, direct profit or another category.

Owner threshold

1% within the previous five years is decisive

A person who held at least 1% at any point in the previous five years falls within the substantial-share disposal rule. The same threshold is central to the individual exit-tax regime.

Sale of the company stake

26.375% below 1%; 60% added to income at 1% or more

A portfolio stake below 1% normally uses the investment-income rate. A qualifying stake of at least 1% adds 60% of the gain to other taxable income and leaves 40% exempt. Leaving Germany can also treat the stake as sold and charge exit tax before an actual sale.

Salary or director pay

Income-tax bands up to 45% plus social contributions

Salary and director pay are employment income. Wage tax withholding and social insurance can apply, while the company's deduction and the owner's tax must be modelled separately.

Owner social-insurance status

Control and dependence decide

A managing shareholder is not automatically employed or self-employed for social- insurance purposes. A controlling owner is usually outside statutory social insurance, while a minority owner is usually inside. The exact status depends on the facts.

Running the company from Germany

German company tax can arise

Making the main company decisions from Germany can make the foreign company German-resident. A fixed workplace or an agent acting for the company can separately create a taxable German business presence.

CFC rules

Can tax foreign-company profit before a dividend

A German resident who controls more than half of a foreign company can be taxed on certain passive, low-taxed profit before it is paid out. The ownership, type of income and foreign tax rate all matter.

New-resident treatment

No general owner-company new-resident rule

Arrival does not switch off the rules for company residence, a taxable business presence, large shareholdings, exit tax or CFCs. Each has its own threshold and period.

German property rent

Income-tax bands on net income

German rent enters the ordinary income-tax bands after allowable expenses and depreciation. Financing, repairs and acquisition costs do not all receive the same timing.

Foreign property rent

Source tax plus treaty relief in Germany

The property's country normally taxes first. Many treaties exempt the foreign rental income in Germany but use it to set the rate on other income. Other treaties give a credit instead, so the country pair controls.

Deductions

Net income after allowed costs and depreciation

Interest, repairs, management and depreciation can reduce taxable rent when the statutory conditions are met. The exact depreciation rate depends on the building and completion date, so it is not reduced to one number here.

There is no separate rule here. Use the general foreign-income case, then check what the treaty says about the country paying the money.

Main home

Exempt when the self-use conditions are met

A home used exclusively by the owner can be exempt. A second route covers use in the sale year and the two preceding calendar years, subject to the statutory facts.

German investment property

Added to other income within ten years; exempt after

A private investment-property gain is added to your other taxable income if you sell within ten years of buying. After ten years, the qualifying private gain is exempt.

Foreign property

Property-country tax; treaty exemption or credit

The property's country normally taxes the gain. Germany may give credit for that tax. Another treaty may leave the gain out of German tax but use it to set the rate on other income. The German ten-year rule still needs to be checked.

Home exemption conditions

Continuous self-use, or sale year plus two prior years

The exemption can apply to continuous owner occupation or to qualifying use in the year of sale and both preceding calendar years. Letting and mixed use can leave part taxable.

Starting value after a move

Original purchase cost and original acquisition date

Germany does not reset property on arrival. Original purchase cost measures the gain and the original acquisition date continues the ten-year clock.

New-resident treatment

No general new-resident exemption

A recent arrival receives no separate property-gain exemption. The ordinary self-use, ten-year and treaty rules apply.

There is no separate rule here. Use the general foreign-income case, then check what the treaty says about the country paying the money.

German royalties

Personal income-tax bands

A passive licence can fall within rental-type income, while the creator's own professional work can be freelance income. Commercial licensing can instead be business income.

Foreign royalties

German income tax plus tax taken abroad

Germany taxes a resident's foreign royalty under its classified category. The source country may withhold, with the treaty providing exemption, credit or a reduced source rate.

Which rights qualify

Temporary licensing differs from a permanent transfer

A time-limited grant of copyright, patent or know-how can be a royalty. A permanent sale of the right can be a disposal instead, so the contract and retained rights matter.

Passive or active

Rental, freelance or business income

Passive licensing can remain rental-type income. An author or artist can be freelance and avoid trade tax, while a commercial operation can be a trade subject to municipal trade tax.

Social contributions and VAT

Active work can add both

Active creative work can bring VAT and, for some artists and writers, social insurance through the artists' system. The exact result depends on status and turnover.

Employment in Germany

Income-tax bands up to 45% plus social insurance

Salary for work in Germany enters the ordinary income-tax bands. Wage-tax withholding and employee social insurance apply under their current thresholds, with employer contributions alongside.

Remote work for a foreign employer

German tax; employer payroll and business-presence risk

Work performed from Germany is normally within German employment tax. The foreign employer can acquire payroll duties or a taxable business presence. The treaty separately decides which country taxes the employment income.

Self-employment and consulting

Income-tax bands; a business can add trade tax

A qualifying liberal professional can have freelance income without trade tax. Another consultant can be a commercial business subject to municipal trade tax. Social-insurance duties depend on the profession and facts.

Director fees

Separate treaty article

Director remuneration enters personal income and has its own treaty article. The company country can retain taxing rights even when the director performs some work from Germany.

New-resident employment rule

No general expat rate

Germany has no general reduced tax rate for a newly arrived employee. Ordinary income tax, payroll, social insurance and treaty rules apply from the start of residence and German work.