Tax FAQ
Short answers to the questions that keep coming up with a US broker. The other chapters under "Taxes" cover each topic in more depth.
Basics
Do I even have to declare income from a foreign account?
Yes. A German bank withholds the tax directly, which settles it. Interactive Brokers and Tastytrade do not — and because no German tax was withheld, you are required to declare it (§ 32d Abs. 3 EStG). That is an obligation, not an option.
Why is this so much more work with a US broker?
Because you have no German Steuerbescheinigung. A German broker runs FIFO, currency conversion, withholding tax and loss offsetting for you and reports finished figures. A US broker gives you raw data — the classification is up to you.
How much tax is due on capital income?
25 % flat tax (§ 32d Abs. 1 EStG), plus 5.5 % solidarity surcharge on the tax and church tax if applicable. Effectively about 26.4 % without church tax and about 27.8–28.0 % with it. The solidarity-surcharge threshold that applies to other income does not apply here.
What if my personal tax rate is lower?
Then apply for the Günstigerprüfung (§ 32d Abs. 6 EStG). The tax office automatically uses whichever rate is better for you; there is no downside to requesting it.
Do I still get the Sparer-Pauschbetrag with a US broker?
Yes, just not at source. You are entitled to €1,000 (filing alone) or €2,000 (jointly assessed) under § 20 Abs. 9 EStG. A foreign broker cannot apply an exemption order, so you claim the allowance through your tax return. It applies once across all your accounts combined.
Can I deduct my custody fees?
No. Ongoing costs are covered by the Sparer-Pauschbetrag (§ 20 Abs. 9 EStG). Transaction costs that belong directly to a purchase or sale do reduce that trade's gain.
Shares & securities
Can I choose between FIFO and another method?
No. For securities held in a custody account, FIFO is prescribed: the shares bought first count as sold first. Each position is tracked separately.
Does the US wash-sale rule apply to me?
No. Germany has no wash-sale rule. Adjustments from US tax paperwork (a 1099, for instance) must not be carried into the German figures — the calculation runs on the actual executions under FIFO.
What applies to a stock split?
A split is tax-neutral. The total cost basis stays the same, only the per-share price is rescaled — and the original acquisition date is retained. If a reverse split pays out a fraction in cash, that small part is a sale.
Funds & ETFs
Is tax due on an accumulating ETF even though nothing is paid out?
Yes, through the Vorabpauschale (§ 18 InvStG). It is built from the redemption price at the start of the year, the base rate and 70 %, capped at the year's rise in value and reduced by any distributions. If the fund falls in value, it is 0.
Which year does the Vorabpauschale belong to?
The following year. It is only deemed to accrue on the first working day of the next year (§ 18 Abs. 3 InvStG) — so the 2024 Vorabpauschale belongs on your 2025 return. This is a common mix-up.
Do US ETFs have a Vorabpauschale too?
Usually yes. Many US-domiciled ETFs are still investment funds under the InvStG. "US ETF" does not automatically mean "no Vorabpauschale".
Why do I have to set the fund type myself?
Because the Teilfreistellung depends on it — 30 % for equity funds, 15 % for mixed funds, 60 % or 80 % for property funds — and broker data does not carry this German classification. What counts is the fund's prospectus (Anlagebedingungen).
Does the Teilfreistellung reduce losses as well?
Yes, and it is easy to miss. If you sell equity-fund units at a loss, only 70 % of that loss is deductible.
Options & derivatives
When is a writer's premium taxed?
When it reaches you (§ 20 Abs. 1 Nr. 11 EStG), regardless of what happens to the option later. If you buy the option back afterwards, the premium you pay reduces your income.
What happens when a purchased option expires worthless?
The premium you paid is a deductible loss. This was contested for a long time but has been settled by the Federal Fiscal Court and adopted by the tax authority.
Where do options belong on the tax return?
For private investors, on Anlage KAP — not Anlage SO. Writer premiums and gains from forward transactions have their own lines there.
Losses
Which losses can I offset against what?
Losses from share sales only against gains from share sales (§ 20 Abs. 6 S. 4 EStG). Everything else — interest, dividends, funds, forward transactions — shares one common pool. Any loss left over is carried forward to the next year; there is no carryback.
Does the €20,000 cap on forward transactions still apply?
No. The separate loss bucket for forward transactions and its €20,000 cap were removed by the 2024 Annual Tax Act (JStG 2024), retroactively in all cases still open. Such losses can again be offset without limit against your other capital income.
Do I need a Verlustbescheinigung?
No. That certificate is an instrument of German banks, which run internal loss pools. A foreign broker runs none — you declare gains and losses directly and the tax office does the offsetting.
Withholding tax
How much US withholding tax can I credit?
At most the rate the US is allowed to keep under the double-taxation treaty: 15 % on dividends — and at most 25 % per item of income (§ 32d Abs. 5 EStG). With a valid W-8BEN the US withholds exactly those 15 %, and all of it is creditable.
And if 30 % was withheld?
Without a W-8BEN the US withholds 30 %. Only 15 % is creditable even so — you do not recover the other 15 % through the German return, only through a refund procedure with the US tax authority.
Is unused withholding tax refunded or carried forward?
Neither. The credit is applied per individual item of income and per country; any excess lapses.
Why is my creditable withholding tax lower on funds?
Because the tax base is already reduced by the Teilfreistellung. For an equity fund (30 %), only 70 % of €15 withheld — €10.50 — is creditable.
Currency
Which exchange rates apply?
The official reference rates — specifically the rate for the trade day of each transaction, not a yearly average and not the year-end rate. That is why two trades of equal size in dollars can produce different euro results.
Are currency gains taxable?
Foreign currency you hold as a balance is a private disposal (§ 23 Abs. 1 Nr. 2 EStG): taxable within one year, tax-free after more than a year. That is a different thing from your share's price gain, which is already inside the euro result.
Forms
Where do my figures go on the forms?
Capital income on Anlage KAP, fund and ETF income on Anlage KAP-INV, private disposals such as currency gains on Anlage SO. The exact line numbers change every year — check them against the official instructions for the year you are filing.
capi.tax prepares your data and is not tax advice. Please review the figures and ask a tax advisor (Steuerberater) about your personal situation.