Capital Gains Tax Calculator — Germany

How Germany Capital Gains Tax Works

Germany imposes a capital gains tax on the sale of certain assets, including stocks, real estate, and other investments. The tax is typically levied at a rate of 25% plus a 5.5% solidarity surcharge, which is a total effective rate of 26.375%. However, there are some exemptions and special rules that can reduce or eliminate the tax liability.

How to Use This Calculator

To use this calculator, you'll need to input the following information:

• Acquisition cost: The original purchase price of the asset.
• Selling price: The price at which you sold the asset.
• Holding period: The length of time you owned the asset.
• Tax year: The year in which you sold the asset.

For example, let's say you purchased a stock for €10,000 in 2018 and sold it for €15,000 in 2022. You would input these values into the calculator, along with the holding period of 4 years and the tax year 2022. The calculator would then estimate your capital gains tax liability based on the current tax rates and rules.

Key Germany Capital Gains Tax Rules

Some important rules to keep in mind:

• A 60-month exemption applies to the sale of real estate, meaning that if you've owned the property for at least 60 months, the gain is tax-free.
• Losses can be offset against gains from other assets, reducing your overall tax liability.
• The tax-free allowance for capital gains is €801 per year for single filers and €1,602 per year for joint filers.
• The filing deadline for capital gains tax is July 31st of the following year.
• Special rules apply to the sale of business assets, such as equipment or inventory.

Common Questions

#### What is the current capital gains tax rate in Germany?

The current capital gains tax rate in Germany is 25% plus a 5.5% solidarity surcharge, for a total effective rate of 26.375%.

#### Are there any exemptions from capital gains tax in Germany?

Yes, there are several exemptions, including the 60-month exemption for real estate and the tax-free allowance of €801 per year for single filers.

#### How do I report capital gains tax in Germany?

You'll need to file a tax return with the Finanzamt (tax office) by July 31st of the following year, using the Erklärung zur Abgeltungsteuer (Capital Gains Tax Return) form.

#### Can I offset losses against gains from other assets?

Yes, losses can be offset against gains from other assets, reducing your overall tax liability.

#### Are there any special rules for non-residents?

Yes, non-residents are subject to a withholding tax of 25% on capital gains from the sale of German assets, which can be credited against their final tax liability.