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  2. Germany Tax Guide 2025

Complete Germany Tax Guide 2025
Abgeltungsteuer, ETFs, Crypto & ELSTER Filing

Anlage KAP, Anlage KAP-INV, Anlage SO - Kapitalertragsteuer, Vorabpauschale, Krypto

ELSTER-ready Excel reports: Anlage KAP, KAP-INV, SO with exact Zeile numbers[11]
ETF Teilfreistellung: 30% equity, 15% mixed, 0% other funds[2]
Vorabpauschale: Applies to accumulating ETFs; tax is due in January[3]
Crypto tax handling: 1-year holding rule, staking income thresholds[7]

KEY GERMAN TAX CONCEPTS FOR 2025

ABGELTUNGSTEUER (Flat Tax)

Germany applies a flat 25% tax on capital income plus 5.5% Solidaritatszuschlag = 26.375% effective rate. If you're a church member, Kirchensteuer (8-9%) also applies.[1]

SPARERPAUSCHBETRAG (Tax-Free Allowance)

Single: First 1,000 of capital income is tax-free
Married (joint): First 2,000 is tax-free
Apply via Freistellungsauftrag at your broker or claim in Anlage KAP.[1]

FOREIGN BROKERS (Revolut, IBKR, etc.)

If no German withholding was applied (common with foreign brokers), you must declare capital income in Anlage KAP / KAP-INV / SO via ELSTER.[1]

📈
Stocks & Capital Gains
Anlage KAP, 25% + Soli[1]
📊
ETFs & Teilfreistellung
Anlage KAP-INV, partial exemption[2]
🧮
Vorabpauschale
Deemed distribution for acc. ETFs
💰
Dividends
Foreign tax credit[4]
₿
Cryptocurrency
1-year rule, 1,000 Freigrenze[7]
🧾
Forms Overview
KAP, KAP-INV, SO[8][9][10]
🖥️
ELSTER Filing
July 31 deadline[5]
❓
FAQ
Key rules & deadlines[1][5]

Stocks & Capital Gains (Anlage KAP)

Tax Rate Calculation

Component Rate
Kapitalertragsteuer (Capital gains tax) 25.00%
Solidaritatszuschlag (5.5% of KESt) +1.375%
Total (no church tax) 26.375%
+ Kirchensteuer (if applicable) +8-9%
Source: Finanztip Abgeltungsteuer guide.[1]

ANLAGE KAP - Key Fields

  • Zeile 19: Foreign capital income (no German withholding)
  • Zeile 20: Stock sale gains (included in line 19)
  • Zeile 21: Derivatives gains (included in line 19)
  • Zeile 22-25: Losses (non-stock, stocks, derivatives, worthless assets)
  • Zeile 40-41: Foreign taxes credited / creditable
Source: Anlage KAP 2024 form.[8]

Loss Offsetting Rules (Verlustverrechnung)

Stock losses can ONLY offset stock gains (separate "pot").
Other capital losses (ETFs, bonds, derivatives) can offset any capital income.
Unused losses carry forward to future years automatically.[1]

ETFs & Teilfreistellung (Anlage KAP-INV)

Partial Exemption Rates (Teilfreistellung)

Since 2018, investment funds benefit from partial tax exemption based on their asset composition:[2]

Fund Type Exempt % Taxable % Examples
Equity Funds (>=51% stocks) 30% 70% MSCI World, S&P 500 ETFs
Mixed Funds (>=25% stocks) 15% 85% Balanced portfolios
Other Funds 0% 100% Bond ETFs, money market
Source: Finanztip ETF tax guide (Teilfreistellung rates).[2]

Example: Selling an Equity ETF

Capital gain: 1,000
Teilfreistellung (30%): -300
Taxable amount: 700
Tax (26.375%): 184.63[1]

ANLAGE KAP-INV - Key Sections

  • Section 1 (Zeile 4-8): Distributions (Ausschuttungen)
  • Section 2 (Zeile 9-13): Vorabpauschale (deemed distributions)
  • Section 3 (Zeile 14-26): Capital gains from sales (Veraußerungsgewinne)
Source: Anlage KAP-INV 2024 form.[9]

Vorabpauschale (Deemed Distribution)

What is Vorabpauschale?

For accumulating (thesaurierende) ETFs that don't distribute dividends, Germany taxes a "deemed distribution" called Vorabpauschale. This prevents indefinite tax deferral on unrealized gains.[3]

Calculation Formula

Basisertrag = Fund Value (Jan 1) x Basiszins x 0.70

Vorabpauschale = max(0, min(Basisertrag, Actual Gain) - Distributions)

Taxable = Vorabpauschale x (1 - Teilfreistellung)

Basiszins is published annually; for 2025 it is 2.53%.[3]

Example: Accumulating Equity ETF

Fund value Jan 1: 10,000
Basiszins (2025): 2.53%
Basisertrag: 10,000 x 0.0253 x 0.70 = 177.10
Teilfreistellung (30%): -53.13
Taxable Vorabpauschale: 123.97
Tax (26.375%): 32.70[1][3]

Important Notes

  • Vorabpauschale is zero if the fund lost value during the year
  • Vorabpauschale is capped at actual fund gains and reduced by distributions
  • Paid Vorabpauschale reduces later taxable gains (no double taxation on sale)
  • German brokers withhold automatically; foreign brokers may require manual declaration
Source: Finanztip Vorabpauschale guide.[3]

Dividends (Anlage KAP)

Foreign Dividend Tax Credit

Germany allows credit for foreign withholding taxes up to treaty limits; excess amounts may be refundable from the source country.

Source: Finanztip Quellensteuer guide.[4]

ANLAGE KAP - Dividend Fields

  • Zeile 7: Capital income (dividends included if withholding applied)
  • Zeile 19: Foreign capital income (dividends from foreign brokers)
  • Zeile 40: Credited foreign taxes
  • Zeile 41: Creditable foreign taxes not yet credited
Source: Anlage KAP 2024 form.[8]

Cryptocurrency (Anlage SO)

Tax-Free After 1 Year!

Crypto held for more than 1 year is tax-free under §23 EStG (Haltefrist).[7]

Crypto Taxation Overview

Type Tax Treatment Form
Capital Gains (<1 year) Personal income tax rate (progressive) Anlage SO, §23 EStG
Capital Gains (>1 year) TAX-FREE Tax-free under §23 EStG
Staking/Mining/Airdrops Personal income tax rate Anlage SO, §22 Nr. 3 EStG
Source: Steuern.de crypto tax guide.[7]

Critical: Freigrenze vs Freibetrag

Capital gains (§23): 1,000 Freigrenze - if you exceed this, the entire amount is taxable!
Other income (§22 Nr. 3): 256 Freigrenze for staking, mining, airdrops

Unlike Freibetrag (allowance), a Freigrenze means crossing the threshold makes ALL income taxable, not just the excess.[6][7]

10-Year Extension Does Not Apply

For currency/payment tokens, staking or lending does NOT extend the holding period; the 1-year rule still applies.[7]

Commercial Mining Warning

Mining and forging income is treated as §22 Nr. 3 income if not carried out commercially; commercial activity can change the tax treatment.[7]

Forms Overview

Which Form Applies?

Anlage KAP

Capital income such as stocks, bonds, dividends, interest, and derivatives.[8]

Anlage KAP-INV

Investment funds (ETFs, mutual funds): distributions, Vorabpauschale, sales gains.[9]

Anlage SO

Crypto trades (< 1 year) and crypto income (staking, mining, airdrops).[10][7]

Sources: Anlage KAP/KAP-INV/SO forms and Steuern.de crypto guide.[8][9][10][7]

ELSTER Filing Guide

Filing Deadlines

Tax Year Self-Filed With Tax Advisor
2024 July 31, 2025 April 30, 2026
2025 July 31, 2026 March 1, 2027
Source: Finanztip filing deadline guide.[5]

How Tax-Wizard Helps

Tax-Wizard generates an Excel report with a Schnellübersicht (Quick Reference) sheet showing exact values to enter in ELSTER:[11]

  • Values formatted as "(Anlage KAP, Zeile X)" for easy copy-paste
  • Separate sheets for Anlage KAP, KAP-INV, and SO
  • Teilfreistellung and Vorabpauschale pre-calculated
  • Foreign tax credit breakdown by country
Source: Tax-wizard Germany exporter implementation.[11]

FAQ

Where do I report foreign broker income?

Foreign capital income is reported in Anlage KAP (Zeile 19). Investment funds belong in Anlage KAP-INV, and crypto trades/income go in Anlage SO.[8][9][10]

What is the Sparerpauschbetrag?

The tax-free allowance for capital income is EUR 1,000 (single) or EUR 2,000 (married, joint).[1]

When is the filing deadline?

The general deadline is July 31 of the following year for self-filers; extended deadlines apply when using a tax advisor.[5]

Are crypto gains tax-free after 1 year?

Yes. Crypto held for more than 1 year is tax-free under the private sales rules in §23 EStG.[7]

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Sources

  1. Finanztip Abgeltungsteuer: https://www.finanztip.de/abgeltungsteuer/
  2. Finanztip ETF Steuern: https://www.finanztip.de/indexfonds-etf/etf-steuern/
  3. Finanztip Vorabpauschale: https://www.finanztip.de/indexfonds-etf/etf-steuern/was-ist-die-vorabpauschale/
  4. Finanztip Quellensteuer: https://www.finanztip.de/indexfonds-etf/quellensteuer/
  5. Finanztip Steuererklärung Frist: https://www.finanztip.de/steuererklaerung/steuererklaerung-frist/
  6. Lohnsteuer-kompakt Freigrenze: https://www.lohnsteuer-kompakt.de/steuerwissen/private-veraeusserungsgeschaefte-erhoehung-der-freigrenze-auf-1-000-euro
  7. Steuern.de Bitcoin/Krypto-Steuern: https://www.steuern.de/bitcoin-steuer
  8. Anlage KAP 2024 (PDF): https://www.steuern.de/fileadmin/user_upload/Steuerformulare_2024/Anlage_KAP_steuern.de_01.pdf
  9. Anlage KAP-INV 2024 (PDF): https://www.steuern.de/fileadmin/user_upload/Steuerformulare_2024/Anlage_KAP_INV_Steuern.de_01.pdf
  10. Anlage SO 2024 (PDF): https://www.steuern.de/fileadmin/user_upload/Steuerformulare_2024/Anlage_SO_steuern.de_01.pdf