Skip to content

Glossary · Flat withholding tax

Abgeltungsteuer

The flat tax on interest, dividends and capital gains, withheld by German banks and brokers.

← All terms

Plus Soli and, if applicable, church tax. German banks withhold it automatically, which settles the tax in most cases.

With a foreign broker nothing is withheld, so you must declare the income in your tax return yourself. A tax-free saver's allowance applies if you file an exemption order (Freistellungsauftrag).

Full guideCapital gains tax in Germany (Abgeltungsteuer)

General information on German tax law, not advice on your individual case.

Ready to sort out your German taxes?

Book a video consultation in English. We look at your situation, tell you what applies and what it costs.

Book a consultation