Foreign capital gains must often be taxed in Germany. Whether this applies to your earnings depends on your residency, the origin of the income, and the type of capital gains. Here, you’ll learn when you need to declare foreign capital gains and how to benefit from tax advantages.
- Classification of capital gains: Capital gains are considered foreign if they flow into a foreign bank account or securities account—not based on the company's location.
- Taxation & allowances: From €1,000 for singles and €2,000 for married couples, foreign capital gains are subject to withholding tax (25%), the solidarity surcharge, and, if applicable, church tax.
- Tax return & refunds: By filing a tax return, you can recover overpaid withholding tax, especially if your personal tax rate is below 25%. In Taxfix, you enter these under the "About You" category.
🚀 Your Guide
- What are foreign capital gains?
- Which foreign capital gains can you declare in the Taxfix app?
- Entering capital gains in the Taxfix app
- Capital gains in the tax return – How you benefit
- How are foreign capital gains taxed in Germany?
- What is withholding tax, and how is it credited?
What Are Foreign Capital Gains?
Capital gains are considered foreign if they flow into a foreign bank or securities account. The company’s location is irrelevant—what matters is where your securities account is held.
📍 Examples:
- If you have a securities account in Germany and invest in a foreign ETF, the earnings are not foreign, as they are paid into your German account.
- If your securities account is with a foreign bank, the earnings are foreign and must be reported in your tax return.
Which Foreign Capital Gains Can You Declare in the Taxfix App?
Whether you can enter your capital gains in the Taxfix app depends on the type of capital gains:
✅ Interest & dividend income during your stay in Germany can be entered in the app.
❌ Other types of earnings or foreign withholding tax credits are not supported in the app.
Entering Capital Gains in the Taxfix App
To enter your capital gains via the Taxfix app:
- Go to the "About You" category.
- Select "Capital Gains (including foreign)".
- Upload your tax certificate(s) from your bank.
- Enter any losses if applicable.
Capital Gains in the Tax Return – How You Benefit
👉 Use your tax-free allowance: If you haven’t set up a tax exemption order with your bank, your capital gains were taxed in full. By filing a tax return, you can reclaim overpaid taxes.
👉 Tax advantage check by the tax office: If your personal tax rate is below 25%, the tax office will refund excess withholding tax.
How Are Foreign Capital Gains Taxed in Germany?
Taxation depends on where you lived when the capital gains were received.
🏠 Capital Gains During a Stay Abroad
- Earnings received while living abroad are tax-free in Germany and do not need to be declared.
📊 Capital Gains While Residing in Germany
- Foreign interest or dividend income is taxed like domestic capital gains.
- From €1,000 for singles and €2,000 for married couples, a 25% withholding tax applies—plus:
- Solidarity surcharge (5.5%)
- Church tax (8% or 9%), if applicable
What Is Withholding Tax, and How Is It Credited?
In many countries, withholding tax is levied on capital gains at the source (e.g., by your foreign bank). This can lead to double taxation—once abroad and once in Germany.
👉 How to Get a Credit:
- In some cases, you can offset foreign withholding tax against your German tax liability.
- The credit options vary by country. You can find an overview here (in german): List of Foreign Withholding Taxes.
💡 Withholding tax crediting is not possible in the Taxfix app. If you want to claim this, contact your tax office after submitting your tax return.
🚀 Fill out the simple question-answer flow - we'll take care of the rest!
Still have questions?
We're here to help! Contact our support team