Funds & Teilfreistellung

With funds and ETFs, a fixed share of your income is tax-free from the outset — the Teilfreistellung (partial exemption, § 20 InvStG). It offsets the fact that the fund has already borne tax internally. How large it is depends solely on the fund type.

The rates

• Equity funds — predominantly shares (more than 50 % per the fund terms): 30 % tax-free.
• Mixed funds — at least 25 % shares: 15 % tax-free.
• Property funds: 60 % tax-free.
• Foreign-property funds — predominantly foreign real estate: 80 % tax-free.
• Other funds — such as pure bond ETFs: 0 %.

On everything the fund produces

The Teilfreistellung applies equally to distributions, the Vorabpauschale, and the gain on selling fund units. Easy to miss: it also reduces losses. If you sell equity-fund units at a loss, only 70 % of that loss is deductible — the other 30 % is left out.

You have to set the fund type

Whether a fund counts as an equity, mixed or property fund follows from its prospectus (Anlagebedingungen) — not from its actual composition on a single day. The data from Interactive Brokers and Tastytrade does not contain this German classification. So you set the fund type in capi.tax yourself; if it is missing, we deliberately do not guess with a silent default — we flag it.

On the tax return

Fund income without German withholding goes on Anlage KAP-INV, separated by fund type. You enter the gross figures; the tax office deducts the Teilfreistellung.

capi.tax prepares your data and is not tax advice. Please review the figures and ask a tax advisor (Steuerberater) about your personal situation.