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- Germany Tax Guide — 2025 Returns (Filed in 2026)
Germany Tax Guide 2026 — for the 2025 Tax Year (VZ 2025)
Abgeltungsteuer, ETFs, Crypto & ELSTER Filing
Anlage KAP, Anlage KAP-INV, Anlage SO — covers tax year 2025 (forms VZ 2025), filed by 31 July 2026. With 2026 outlook (Basiszins 3,20 %, DAC8/KStTG reporting).
Last updated: · Reflects the 2025 ELSTER forms (Anlage KAP, KAP-INV, SO).
WHAT'S NEW FOR THE 2025 TAX YEAR
§20 Abs. 6 Sätze 5 AND 6 EStG REPEALED — both €20k loss caps gone
The Jahressteuergesetz 2024 (in force from 6 Dec 2024) deleted both Satz 5 (€20,000 cap on Termingeschäft losses — futures, options, CFDs) and Satz 6 (cap on uneinbringliche Kapitalforderungen — defaulted P2P loans, worthless capital claims). Applies retroactively to all open assessments. Derivative losses and write-offs of defaulted loans now offset other capital income (interest, dividends, ETF gains) without limit.[12][16]
Anlage KAP / SO / AUS — 2025 forms changed
Following the §20 Abs. 6 Satz 5 EStG repeal, Zeilen 21, 24 and 25 (derivatives losses, uncollectible claims) have been removed from Anlage KAP 2025; subsequent line numbers shifted. Anlage SO 2025: the crypto section was renamed from "Einheiten virtueller Währung und/oder sonstige Token" to "Kryptowerte" and now starts at Zeile 45. Anlage AUS 2025: two new Zeilen 15/16 added for §50d Abs. 7 Satz 2 EStG; the former §50d Abs. 10 fields (Kz 824/825) shifted from Zeilen 15/16 to 17/18. Retail filers fill only Zeilen 4/6/7/12.[13]
BMF Crypto Letter dated 6 March 2025
The Federal Ministry of Finance replaced its 2022 crypto guidance with the BMF-Schreiben of 6 March 2025. The 1-year Haltefrist is preserved; the previously feared 10-year extension for staking/lending is confirmed as not applicable. Documentation requirements were tightened — keep wallet-level records and timing of staking-reward claims.[14]
DAC8 / KStTG — Crypto reporting begins 1 Jan 2026
Germany implemented EU directive DAC8 via the Kryptowerte-Steuertransparenzgesetz (KStTG). From 1 Jan 2026, crypto-asset service providers (Coinbase, Kraken, Bitvavo, Binance EU, etc.) must collect and report tax-relevant data on EU customers. First automatic exchange between EU tax authorities by 30 Sept 2027. If you use foreign brokers/exchanges, expect the Finanzamt to receive matching data — under-reporting risk rises sharply.[15]
Vorabpauschale Basiszins for 2026 = 3.20%
BMF announced the Basiszins for the 2026 calendar year at 3.20% (BMF-Schreiben 13 Jan 2026), up from 2.53% used for the 2025 tax year. Expect a higher Vorabpauschale on accumulating ETFs at the start of 2027.[3]
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)
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% |
ANLAGE KAP 2025 — Key Fields
The 2025 form removed Zeilen 21, 24 and 25 following the repeal of §20 Abs. 6 Satz 5 EStG; subsequent line numbers shifted up. Always reconcile against your current ELSTER form.[13]
- Zeile 7: Capital income with German withholding (Steuerbescheinigung)
- Zeile 19: Foreign capital income (no German withholding) — main entry for Revolut, IBKR, Trading 212 etc.
- Zeile 20: Of which: stock sale gains (Aktiengewinne)
- Zeile 22-23: Stock losses / "other" losses pots (Verlustverrechnungstöpfe)
- Zeile 33: Income from non-cooperative jurisdictions (§11 StAbwG) — new for 2025
- Zeile 40-41: Foreign taxes credited / creditable (Anrechnung)
Loss Offsetting Rules (Verlustverrechnungstöpfe)
Stock losses can ONLY offset stock gains — this "Aktien-Topf" rule under §20 Abs. 6 Satz 4 EStG remains.
Other capital losses (ETFs, bonds, derivatives, crypto-as-capital-income) can offset any other capital income.
Derivatives losses (Termingeschäfte): from VZ 2025 onward, the €20,000 annual cap is GONE — these losses offset other capital income without limit.[12]
Unused losses are carried forward to future years automatically by the broker or the Finanzamt.[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 |
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)
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 set by BMF each January based on the Bundesbank long-term rate. Published values:
- Tax year 2024: 2.29% (withheld Jan 2025)
- Tax year 2025: 2.53% (withheld Jan 2026)[3]
- Tax year 2026: 3.20% (to be withheld Jan 2027) — BMF-Schreiben 13.01.2026[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
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.
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
Günstigerprüfung & Freistellungsauftrag
Günstigerprüfung — when 25% isn't your best rate
If your personal income tax rate is below 25% (e.g. students, pensioners, low-income years), you can tick the Günstigerprüfung box on Anlage KAP. The Finanzamt then taxes your capital income at your personal progressive rate instead of the 25% Abgeltungsteuer — and refunds the difference. The box always applies to your entire capital income, not a subset.
Reference points for 2025/2026:
- Grundfreibetrag 2025: €12,096 — taxable income below this is taxed at 0%
- Grundfreibetrag 2026: €12,348
- Soli-Freigrenze on ordinary income: ~€19,950 (2025) / ~€20,350 (2026) — but Soli still applies in full to Abgeltungsteuer regardless
Freistellungsauftrag — apply your Sparerpauschbetrag at source
With a German broker, file a Freistellungsauftrag (exemption order) so the broker withholds 0% on the first €1,000 (single) / €2,000 (joint) of capital income. You can split the total across multiple banks. Foreign brokers (Revolut, IBKR, Trading 212, etc.) cannot apply the Sparerpauschbetrag — you claim it in Anlage KAP instead.[1]
Currency Conversion (Foreign Brokers)
All amounts in Anlage KAP / KAP-INV / SO must be reported in EUR. For each USD/GBP/etc. trade, convert at the rate on the day of the transaction. The Finanzamt accepts:
- ECB reference rate on the trade date (preferred — official and free)
- BMF-Umsatzsteuer-Umrechnungskurse (monthly average) — simpler if you have many trades
- Broker's own FX rate, as long as you apply it consistently
Tax-Wizard auto-converts every transaction at the ECB daily rate and includes a per-trade FX column in the Excel export so the Finanzamt can reconcile.
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 |
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. The BMF-Schreiben of 6 March 2025 (replacing the 2022 letter) confirms this and tightens documentation requirements (wallet-level records, claim/payment timing for staking rewards).[14]
Where to enter crypto in Anlage SO 2025
On the 2025 form, the crypto section is renamed from "Einheiten virtueller Währung und/oder sonstige Token" to "Kryptowerte" and begins at Zeile 45. Disposals within 1 year go here; staking/airdrop/mining income belongs in the §22 Nr. 3 section of the same form.[13]
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]
DeFi, NFTs, Forks & Wrapped Tokens
The BMF letter of 6 March 2025 took explicit positions on most DeFi categories. NFTs are still deferred to a separate forthcoming letter and currently default to private-sale (§23 EStG) treatment.[14]
| Activity | Tax Treatment (BMF 6.3.2025) | Form / Note |
|---|---|---|
| DeFi lending (Aave, Compound, etc.) | §22 Nr. 3 EStG (Other Income) — taxed at personal rate; €256 Freigrenze. §20 EStG only if a genuine debtor exists, which smart-contract pools rarely satisfy. | Anlage SO §22 Nr. 3 |
| Liquidity-pool deposit / withdrawal | Generally a §23 disposal — depositing tokens for an LP-token is treated as a swap; receiving back the underlying is another disposal. Impermanent loss and DAO governance income remain explicitly unresolved. | Anlage SO §23 (Zeile 45+ for VZ 2025) |
| Wrapped tokens (wBTC, stETH, ...) | Wrapping = swap = §23 disposal of the underlying. Holding period restarts on the wrapper. Practitioners contest this on economic-equivalence grounds, but the BMF position binds Finanzämter. | Anlage SO §23 |
| Hard fork | New coin received via fork: cost basis €0. Full proceeds taxable on later disposal under §23 EStG. The 1-year clock starts at the fork. | Anlage SO §23 |
| Airdrop | §22 Nr. 3 income at fair value on receipt if an active counter-performance was required (marketing tasks, KYC, etc.). Otherwise §23 with €0 cost basis. | Anlage SO §22 Nr. 3 or §23 |
| NFT trading (private) | Default: §23 EStG, 1-year Haltefrist, €1,000 Freigrenze — same as currency tokens. BMF deferred explicit guidance to a separate forthcoming letter. | Anlage SO §23 |
Per-wallet FIFO requirement
The 2025 BMF letter tightens cost-basis methodology: FIFO must be applied per wallet, not cross-wallet pooled. Track which wallet holds which lot or risk recalculation by the Finanzamt. Same-wallet aggregation is still allowed within a single exchange account.[14]
Bonds & Money-Market Instruments (Anleihen)
Coupons and Sale Gains — Anlage KAP
- Coupons (Zinsen): §20 Abs. 1 Nr. 7 EStG → Anlage KAP Zeile 19 (foreign broker, no German withholding). Abgeltungsteuer 26,375 %.
- Sale gains / losses: §20 Abs. 2 Satz 1 Nr. 7 EStG → Anlage KAP Zeile 19. No holding period — every sale is a capital event at the flat rate.[16]
- Zero-coupon bonds: the accrued discount (Emissionsdisagio) is realised on sale or redemption under §20 Abs. 2 Nr. 7 — no annual imputation.
Stückzinsen (Accrued Interest)
Since the 2010 reform, Stückzinsen are treated as part of the sale price, not as separate interest income:
- Buyer pays Stückzinsen to the seller — fully deductible as negative capital income in the year of payment.
- Seller receives Stückzinsen — fully taxable as part of the §20 Abs. 2 sale price.
Transitional rule §52 Abs. 28 Satz 16 EStG: applies even to bonds acquired before 2009. Source: BMF "Einzelfragen zur Abgeltungsteuer" 14.05.2025.
Foreign-Currency Bonds — FX is Part of the §20 Gain
Settled BFH view, reaffirmed by BMF 14.05.2025: the FX component of a foreign-currency bond is part of the §20 Abs. 2 capital gain — not a separate §23 private currency sale. A USD bond bought and sold by a EUR investor produces one combined capital gain, taxed at Abgeltungsteuer, no holding period. Only standalone cash-FX trades (Devisengeschäfte) remain in §23 with the 1-year rule.
P2P Lending (Mintos, Bondora, Inrento, Robocash, Raize, …)
Interest Income
P2P interest is §20 Abs. 1 Nr. 7 EStG capital income — Abgeltungsteuer 26,375 %, reported in Anlage KAP Zeile 19 (foreign broker, no German withholding). Include alongside interest:
- Bonus / cashback / Frühbucher-rewards
- Aufgelder received on the secondary market
- Buyback-guarantee payments (treated as recovered interest)
Big Change for VZ 2025 — Defaulted-Loan Losses Are Now Fully Deductible
The Jahressteuergesetz 2024 repealed §20 Abs. 6 Satz 6 EStG, which had capped losses from uneinbringliche Kapitalforderungen at €20,000/year. Defaulted P2P loans now offset other capital income (interest, dividends, ETF gains) without limit — both prospectively from VZ 2025 and retroactively to open assessments.[12][16]
When Is a Loss "Realised"? (Unsettled Timing)
BFH precedent (VIII R 9/17, 27.10.2020) requires the loss to be realised, not merely a book devaluation. Auditors are inconsistent — the safest triggers are:
- Platform confirmation that the loan is finally written off (Status "in default" or "recovery closed")
- Sale of the claim on the platform's secondary market at a loss
- Closure of the borrower's insolvency proceeding
A platform marking a loan "60+ days late" is not sufficient — it's a book provision, not a realised loss.
Latvian Withholding (Mintos, Twino, Viainvest, Debitum)
Latvia withholds 20 % at source by default; with a tax-residency certificate filed at the platform, the rate drops to 5–10 %. The Germany ↔ Latvia DTA caps the credit at 10 %. Enter creditable foreign tax in Anlage KAP Zeile 41, capped at the DTA rate; any excess is recoverable from the Latvian VID, not Germany.
Foreign Brokers — Practical Questions
If your broker is Revolut, IBKR, Trade Republic (yes — Irish entity for many users), Trading 212, Scalable, Lightyear or any other non-German custodian, none of the comfortable "the broker did it for me" rules apply. Here's what changes.
No German Steuerbescheinigung — that's normal
Foreign brokers don't withhold German Abgeltungsteuer and don't issue a Jahressteuerbescheinigung. You report the gross figures yourself in Anlage KAP Zeile 19 (foreign capital income). The Finanzamt cannot reject your return because a Steuerbescheinigung is missing.
No Freistellungsauftrag — claim Sparerpauschbetrag in Anlage KAP
Foreign brokers can't apply your EUR 1,000 / 2,000 allowance at source. The Finanzamt deducts it automatically from your declared capital income.
FIFO is mandatory for stocks and crypto
Cost basis for share lots is First-In-First-Out under §20 Abs. 4 Satz 7 EStG. For crypto, the 2025 BMF letter requires per-wallet FIFO (no cross-wallet pooling). LIFO and average cost are not accepted.[14]
FX conversion: ECB daily rate or BMF monthly average
Both are accepted as long as you apply one method consistently per fiscal year. Tax-Wizard uses the ECB daily reference rate (preferred — verifiable).
Belegvorhaltepflicht — keep records 10 years
Since 2017 you no longer submit Belege with your return, but you must produce them on request (§147 AO). Keep broker reports, the Tax-Wizard Excel, and FX-rate documentation for 10 years.
Provide your Steuer-Identifikationsnummer to the broker
EU brokers under DAC1/DAC8 will eventually ask for your Steuer-ID and country of residence. Providing them does not create any new tax — it just means the Finanzamt will see matched data from the broker. From 1 January 2026 DAC8 makes this systematic for crypto-asset service providers.
Anlage AUS (VZ 2025) — Foreign Income, Field-by-Field
When You Need Anlage AUS
Anlage KAP Zeile 41 credits foreign withholding tax up to the DTA cap (15 % for most treaty countries, 10 % for Latvia/Lithuania/China/India). You only need Anlage AUS in three situations:
- Non-DTA countries — the unilateral credit under §34c Abs. 1 EStG goes on Anlage AUS, not Anlage KAP Zeile 41.
- You want to deduct (Abzug) rather than credit (Anrechnung) the foreign tax — §34c Abs. 2 EStG, Zeile 10. Almost never the better choice.
- Fictitious foreign tax credit under a specific DTA (e.g. Brazil) — Zeile 13.
For purely treaty-cap-creditable dividends (US, Irish, UK, French, Luxembourg, etc.), Anlage KAP Zeile 41 alone is sufficient. Filing Anlage AUS doesn't get you any extra credit.
Common Misconception: Swiss 35 % Reclaim
The 20 % over-withheld Swiss Verrechnungssteuer is not reclaimed via Anlage AUS. It goes directly to the Eidgenössische Steuerverwaltung (EStV) via Formular 85 — a separate Swiss process, not a German tax form. You have 3 years from the dividend date. Germany credits only the 15 % treaty portion via Anlage KAP Zeile 41.
Retail Filer Field Map — Only Four Zeilen Matter
Anlage AUS has 20+ Zeilen, but for a private investor with foreign dividends/interest only four fields are filled per country. Each sheet has three side-by-side columns ("Spalte 1 / 2 / 3"); for more than three countries you submit additional Anlage AUS sheets.
| Zeile (Kennziffer) | Feld | What to enter |
|---|---|---|
| 4 | Staat / Spezial-Investmentfonds | Country code (US, GB, IE, FR, BR, …) |
| 5 | Einkunftsquellen | "Ausländische Dividenden / Zinsen" |
| 6 | Enthalten in Anlage(n) und Zeile(n) | "Anlage KAP, Zeile 19" |
| 7 (Kz 107 / 127 / 147) | Einkünfte (Bruttobetrag) | Gross foreign income in EUR per country (Kennziffer for column 1 / 2 / 3) |
| 12 (Kz 109 / 129 / 149) | Anzurechnende ausländische Steuern | Creditable foreign WHT (DTA-capped) in EUR per country |
| 8 / 9 / 10 / 11 / 13 | Teileinkünfteverfahren, Teilfreistellung, §34c Abs. 2/3, fiktive DBA-Steuern | Leave blank — not applicable to private portfolio income |
Kennziffern shown are the official ELSTER internal field codes. Zeilen 14+ are only filled on the first sheet when you submit multiple Anlage AUS pages — they cover §50d EStG, §34c Abs. 5 flat treatment, and §§7–13 AStG CFC rules, none of which apply to retail investors.
Worked Example — Two Countries on One Anlage AUS
You hold a Brazilian ADR (no DTA cap recognised for retail) that withheld 15 % on USD 200 of dividends, and a Lithuanian P2P platform that withheld 15 % on EUR 100 of interest (DE–LT DTA caps creditable at 10 %).
Anlage AUS, Bogen 1:
- Zeile 4: Spalte 1 →
BR· Spalte 2 →LT - Zeile 6: Spalte 1 / 2 →
Anlage KAP, Zeile 19 - Zeile 7 (Kz 107 / 127): Spalte 1 →
184,05· Spalte 2 →100,00 - Zeile 12 (Kz 109 / 129): Spalte 1 →
27,61· Spalte 2 →10,00
Tax-Wizard generates a dedicated "Anlage AUS" sheet in your Excel report whenever excess WHT, Swiss dividends, or non-DTA countries are detected — already split into three-country pages with the exact Spalte/Zeile values to copy across.
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) in the new "Kryptowerte" section from Zeile 45, and crypto income (staking, mining, airdrops) in the §22 Nr. 3 block.[10][7][13]
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 |
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
Worked Examples (VZ 2025)
Three end-to-end calculations a foreign-broker investor in Germany typically runs into. All figures rounded to two decimals; the Finanzamt accepts EUR.
Example 1 — Stock sale on Revolut (USD → EUR)
You bought 50 NVDA shares on 14 February 2024 at USD 720.00. You sold all 50 on 8 August 2025 at USD 1,180.00. Broker fees: USD 1.00 buy, USD 1.00 sell. Revolut does not withhold German tax.
ELSTER entries (Anlage KAP 2025):
- Zeile 19 (Ausländische Kapitalerträge):
17.148,00 - Zeile 20 (davon Aktiengewinne):
17.148,00 - Tax (single, no church): 17,148 × 26,375 % ≈ EUR 4,523.78 (after EUR 1,000 Sparerpauschbetrag if not used elsewhere: 16,148 × 26,375 % ≈ EUR 4,259.03)
Holding period is irrelevant for stocks under §20 EStG — gains are always Abgeltungsteuer, regardless of whether you held 6 months or 6 years.
Example 2 — US dividend with Quellensteuer (Apple)
You received an Apple dividend on 15 May 2025: gross USD 100.00. Because Revolut hasn't filed a W-8BEN, the US withheld 30 % (USD 30.00); you got USD 70.00 net.
ELSTER entries (Anlage KAP 2025):
- Zeile 19 (gross foreign income, includes dividends):
89,45 - Zeile 41 (anrechenbare ausländische Steuer):
13,42 - The EUR 13.41 over-withheld is recoverable from the US IRS via Form 1042-S / 1040-NR — file a W-8BEN with Revolut to avoid this in future years (US then withholds only 15 %).
Under the DE–US double-tax treaty Germany credits foreign withholding up to 15 % of the gross dividend. The excess is the broker's problem, not Germany's.[4]
Example 3 — Crypto §23 EStG and the €1,000 Freigrenze
Two scenarios that look almost identical but produce very different tax bills, because the §23 EStG limit is a Freigrenze, not a Freibetrag.
Bought 0.05 BTC for EUR 2,000 on 10 March 2025.
Sold for EUR 2,900 on 1 December 2025 (held 266 days).
Short-term gain = EUR 900.
€ 900 ≤ € 1,000 → 0 % tax, no entry required (but keep records).
Same trade closed at EUR 3,001 instead of EUR 2,900.
Short-term gain = EUR 1,001.
€ 1,001 > € 1,000 → the entire EUR 1,001 is taxable at your personal income-tax rate (e.g. 35 % → EUR 350.35).
Anlage SO Zeile 45 ff. (new "Kryptowerte" section).
Bonus: If you had instead held the same BTC for 12 months and one day, the entire gain would be tax-free under §23 Abs. 1 Nr. 2 EStG regardless of size.[14]
Staking and airdrop income are reported separately as §22 Nr. 3 EStG with a much smaller EUR 256 Freigrenze. The 2025 BMF letter requires wallet-level documentation and timestamps for each reward claim.
ELSTER Step-by-Step (Foreign-Broker Investor)
The path through MeinELSTER for someone whose only German broker is the Finanzamt itself. Allow ~45 minutes for a typical portfolio; longer the first time.
-
1. Register at
elster.deand wait for the activation letterFree, but the Aktivierungscode arrives by post and can take up to 10 business days (longer in July). Do not leave this for the last week before the deadline. A Steuer-Identifikationsnummer is required.
-
2. Start "Einkommensteuererklärung — Jahr 2025"
From the MeinELSTER dashboard: Alle Formulare → Einkommensteuer → Einkommensteuererklärung (Jahr 2025). Use "Daten übernehmen aus Vorjahr" if you filed in 2024 to pre-fill personal data.
-
3. Add the relevant Anlagen
Open Anlagenauswahl and tick: Anlage KAP (always, for capital income), Anlage KAP-INV (if you hold investment funds / ETFs), Anlage SO (if you sold crypto held < 1 year, or earned staking/airdrop income). Optionally Anlage AUS for non-EU foreign income that needs Anrechnung beyond §32d EStG.
-
4. Fill Anlage KAP from the Tax-Wizard "Schnellübersicht" sheet
Every value Tax-Wizard generates is labelled
(Anlage KAP, Zeile X). Copy them straight across. Most-used fields for VZ 2025:- Zeile 19 — total foreign capital income (gross)
- Zeile 20 — of-which stock gains
- Zeile 22 / 23 — non-stock losses / stock losses (separate pots)
- Zeile 41 — creditable foreign withholding tax (treaty-capped)
-
5. Fill Anlage KAP-INV — values BEFORE Teilfreistellung
Counter-intuitive but important: report ETF distributions, Vorabpauschale and sale gains before the 30 % / 15 % / 0 % exemption. ELSTER applies it automatically based on the fund type you pick (Aktienfonds / Mischfonds / Sonstige).
-
6. Fill Anlage SO — new "Kryptowerte" section
For VZ 2025 the crypto block starts at Zeile 45. Enter Bezeichnung ("Kryptowerte"), Anschaffungszeitpunkt, Veräußerungszeitpunkt, Veräußerungspreis, Anschaffungskosten and Werbungskosten. Staking / mining / airdrop income belongs in the §22 Nr. 3 block higher up (Freigrenze 256 EUR — under it, write nothing).
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7. Tick the Günstigerprüfung box if your personal rate is < 25 %
On Anlage KAP near the top. If your total taxable income (incl. capital gains) lands below ~EUR 18,000, ticking this almost always saves you money — the Finanzamt will simply pick the lower outcome.
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8. Attach evidence (Belege)
Foreign brokers do not issue a German Steuerbescheinigung. Upload your transaction report and the Tax-Wizard Excel as a Beleg (or keep them ready — submission is no longer mandatory under Belegvorhaltepflicht, but the Finanzamt frequently asks foreign-broker filers). Keep records for ten years.
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9. Plausibilitätsprüfung → "Versenden"
ELSTER runs an automatic sanity check and flags red errors before you can submit. Yellow warnings ("Hinweise") are not blockers. After submission you get a Transferticket — keep it.
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10. The Steuerbescheid — and your one-month Einspruchsfrist
Bescheid usually arrives 6–12 weeks later by post. If anything is wrong (especially Quellensteuer not credited, or losses not carried forward), you have one month from delivery to file an Einspruch. Miss that window and the assessment becomes final under §164 AO.
Five Common Mistakes (and How to Avoid Them)
1. Reporting ETF values AFTER Teilfreistellung
ELSTER does the 30 % / 15 % / 0 % reduction for you. Pre-reducing means you're taxed on only 49 % / 72.25 % of the gain. Always enter the gross figure in Anlage KAP-INV.
2. Missing the 15 December Verlustbescheinigung deadline
If you have losses with a German broker and want to net them against gains at a different broker, you must request a Verlustbescheinigung by 15 December of the tax year. Foreign brokers don't issue one — losses there are netted directly via Anlage KAP without this step.
3. Treating crypto-to-crypto swaps as non-taxable
BTC → ETH is a disposal under §23 EStG, even if no fiat ever hits your bank. The 1-year holding clock starts again on the new asset. The 2025 BMF letter is explicit.[14]
4. Forgetting Quellensteuer-Anrechnung in Zeile 41
If you don't claim creditable foreign withholding tax, you're paying tax twice on the same dividend. Tax-Wizard pre-calculates the treaty-capped amount per country; copy the total into Zeile 41.
5. Crossing the €1,000 §23 Freigrenze by a few euros
Freigrenze, not Freibetrag — at €1,001 the whole amount is taxed at your personal rate. If December is approaching and you're near the line, consider waiting until your holding period passes one year so the gain becomes tax-free.
Glossary
- Abgeltungsteuer
- Flat 25 % final-withholding capital-income tax under §32d EStG. With Soli (5,5 % of the 25 %) the effective rate is 26,375 %.
- Sparerpauschbetrag
- Annual capital-income allowance: EUR 1,000 single / EUR 2,000 joint. Applied automatically by German brokers via Freistellungsauftrag, otherwise claimed in Anlage KAP.
- Freistellungsauftrag
- Standing order at a German broker telling them to apply your Sparerpauschbetrag at source. You can split the total across multiple banks. Foreign brokers can't accept one.
- Freigrenze vs Freibetrag
- A Freigrenze is a cliff — go even EUR 1 over and the entire amount becomes taxable. A Freibetrag is a true allowance, only the excess is taxed. §23 EStG uses a Freigrenze (EUR 1,000); the Sparerpauschbetrag is a Freibetrag.
- Teilfreistellung
- Partial tax exemption on investment-fund income (since 2018): 30 % for equity funds (≥ 51 % stocks), 15 % for mixed funds (≥ 25 % stocks), 0 % for other funds.
- Vorabpauschale
- Deemed annual distribution for accumulating ETFs under §18 InvStG. Computed from the fund's January value × Basiszins × 0,7, capped at the actual yearly gain. Tax is withheld in January of the following year.
- Basiszins
- Annual base rate used in the Vorabpauschale formula. Set by BMF each January from Bundesbank's long-term yield. 2025: 2,53 %. 2026: 3,20 %.
- Verlustverrechnungstopf
- Loss-offset "pot" tracked by German brokers. There are two: Aktien (stock losses, can only offset stock gains) and Allgemein (everything else). §20 Abs. 6 Satz 4 EStG.
- Verlustvortrag
- Carry-forward of unused losses to future years. Recognised by the Finanzamt in a Verlustfeststellungsbescheid; available indefinitely until offset.
- Quellensteuer / Anrechnung
- Foreign withholding tax. Germany credits it up to the treaty cap (commonly 15 %) against German tax via Anlage KAP Zeile 41. Excess is recoverable from the source country, not Germany.
- Günstigerprüfung
- Optional check on Anlage KAP: if your personal income-tax rate is lower than 25 %, the Finanzamt taxes your capital income at the personal rate instead. Never worse than the 25 % flat tax.
- Selbstanzeige
- Voluntary disclosure under §371 AO. If you missed declaring capital income from previous years, a complete and timely Selbstanzeige can prevent criminal prosecution — but it must be exhaustive and is irrevocable.
- Veranlagungszeitraum (VZ)
- The tax year (calendar year) being assessed. "VZ 2025" means the 2025 tax year — filed in 2026.
- ELSTER / MeinELSTER
- The official electronic tax-filing portal of the German tax administration. MeinELSTER is the consumer-facing web frontend at elster.de.
- DAC8 / KStTG
- EU directive on crypto-asset reporting (DAC8), implemented in Germany via the Kryptowerte-Steuertransparenzgesetz. CASPs must collect and report data from 1 January 2026; first automatic EU exchange by 30 September 2027.
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. The BMF letter of 6 March 2025 confirms no 10-year extension applies, even for staked or lent coins.[7][14]
Is the €20,000 cap on derivatives or defaulted-loan losses still in force?
No. The Jahressteuergesetz 2024 (in force 6 Dec 2024) repealed both Satz 5 (Termingeschäft losses) and Satz 6 (uneinbringliche Kapitalforderungen — defaulted P2P loans, worthless claims) of §20 Abs. 6 EStG. Applies retroactively to open cases. These losses now offset other capital income without limit.[12][16]
Will the Finanzamt know about my foreign crypto exchange?
Starting 1 January 2026, yes — for EU-licensed providers. Germany's Kryptowerte-Steuertransparenzgesetz (KStTG) implements DAC8: CASPs must collect and report tax-relevant data on EU customers, with the first automatic exchange between EU tax authorities by 30 September 2027.[15]
Quanto vale o seu tempo?
Considere o valor do seu tempo e a tranquilidade de ter uma ferramenta que importa todas as suas transações automaticamente dos seus Brokers, automatiza o todo o cálculo e preenchimento da Declaração de IRS
(pagamento cobre a entrega deste ano relativa a 2025 e anos anteriores, renovação manual no próximo ano)
Premium
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- Suporta todos os brokers e divisas
- Preenchimento automático da Declaração de IRS em Portugal (Anexo J, Anexo G, Anexo G1, e Anexo E)
- Exportar relatórios com Aquisições, Realizações, Dividendos e Juros
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Empresarial
Todas as funcionalidades Premium para contabilistas, consultores ou outras empresas que desejam utilizar a Tax-Wizard para vários clientes.
- Suporta todos os brokers e divisas
- Preenchimento automático da Declaração de IRS em Portugal (Anexo J, Anexo G, Anexo G1, e Anexo E)
- Exportar relatórios com Aquisições, Realizações, Dividendos e Juros
- Análise de posições em aberto e tempo médio de detenção
- Estatísticas de Transações e Dividendos
- Exportar posições para o Yahoo Finance
Sources
Primary German sources (BMF / BZSt / gesetze-im-internet.de) cited first; the rest are reputable secondary explainers.
- [1] Finanztip — Abgeltungsteuer, Soli & Sparerpauschbetrag
- [2] Finanztip — ETF-Steuern (Teilfreistellung 30 % / 15 % / 0 %)
- [3] BMF-Schreiben 13.01.2026 — Basiszins zur Berechnung der Vorabpauschale (3,20 %)
- [4] Finanztip — Quellensteuer und Anrechnung in Anlage KAP
- [5] Finanztip — Abgabefrist Steuererklärung (31.07. des Folgejahres)
- [6] Lohnsteuer-Kompakt — §23 EStG Freigrenze auf 1.000 € erhöht (ab VZ 2024)
- [7] Steuern.de — Bitcoin / Krypto-Besteuerung (Überblick)
- [8] Anlage KAP 2024 (Vordruck als PDF)
- [9] Anlage KAP-INV 2024 (Vordruck als PDF)
- [10] Anlage SO 2024 (Vordruck als PDF)
- [12] CMS — JStG 2024 streicht §20 Abs. 6 Satz 5 EStG (Verlustabzugsbeschränkung Termingeschäfte)
- [13] Haufe — Änderungen in den Vordrucken Anlage KAP / KAP-INV / SO für VZ 2025
- [14] BMF-Schreiben 06.03.2025 — Einzelfragen zur Besteuerung von Kryptowerten (PDF)
- [15] BZSt — DAC8 / Kryptowerte-Steuertransparenzgesetz (KStTG) Verfahren
- [16] §20 EStG — Einkünfte aus Kapitalvermögen (Volltext, gesetze-im-internet.de)
- [17] §23 EStG — Private Veräußerungsgeschäfte (Volltext, gesetze-im-internet.de)
- [18] §32d EStG — Gesonderter Steuertarif (Abgeltungsteuer) und Günstigerprüfung (Volltext)