Tax on investment income in Germany
In Germany investment income is taxed at 25 % income tax (§ 32d Abs. 1 EStG) plus a 5.5 % solidarity surcharge on that tax (§ 4 SolZG 1995), 26.375 % together, without church tax. The first €1,000 a year stays free, €2,000 for married couples assessed jointly (saver's allowance, § 20 Abs. 9 EStG). For equity funds 30 % of the income is also tax free (partial exemption, § 20 Abs. 1 InvStG).
Example: a gain of €3,000 from an equity fund in one year. Taxable is 3,000 × 0.7 − 1,000 = €1,100.00. 25 % of that is €275.00, the 5.5 % surcharge on it €15.12, fractions of a cent are left out. Together that is €290.12. If the €3,000 were interest, €2,000.00 would be taxable and the tax would be €527.50.
The allowance and the partial exemption come off before the tax. That is why the same gain is taxed differently from a fund and as interest.
A gain of €3,000 from an equity fund costs €290.12 in tax in one year. As interest it would be €527.50.
Wording read on 29 October 2026 at gesetze-im-internet.de
Questions people ask
How high is the tax on investment income in Germany?
25 % income tax plus 5.5 % solidarity surcharge on it, 26.375 % together, without church tax (§ 32d Abs. 1 EStG, § 4 SolZG 1995).
How large is the saver's allowance?
€1,000 a year per person, €2,000 for married couples assessed jointly (§ 20 Abs. 9 EStG). Income up to that amount stays free of tax.
What does the partial exemption for equity funds do?
It keeps 30 % of the income of an equity fund free of tax before the allowance comes off (§ 20 Abs. 1 InvStG).
Source: § 32d Abs. 1 EStG, as of 29 October 2026 · § 4 SolZG 1995, as of 29 October 2026 · § 20 Abs. 9 EStG, as of 29 October 2026 · § 20 Abs. 1 InvStG, as of 29 October 2026
One gain in a year, from an equity fund and as interest, taxed step by step.
The simulation, the comparison and the Beam stay free.
Education, not advice. Disclaimer