Three taxable moments
Fund taxation can arise through distributions, the annual advance lump sum and realised gains on sale. German brokers usually calculate withholding automatically.
Partial exemption and fund type
Qualifying equity, mixed and real-estate funds can receive different partial exemptions. The fund classification and reported data matter more than the marketing name.
- Annual broker tax statement.
- Acquisition history and transfers.
- Fund classification.
- Foreign withholding records.
Foreign brokers require active reporting
A foreign platform may not calculate German fund tax or transmit data. German residents must assemble the figures and report them correctly, including deemed amounts where applicable.
Frequently asked
Are accumulating ETFs tax free until sale?
No. The annual advance lump sum can create taxable investment income before sale.
Do I pay tax twice on the Vorabpauschale?
It is taken into account in the later gain calculation to prevent double taxation.
Does a foreign broker handle German ETF tax?
Often not. The German resident then has to calculate and report the relevant income.
This guide is general information on German tax law, not advice on your individual case. Rules and figures change with each tax year.