Capital Gains Tax Germany 2023

German citizens to receive increased tax allowance on capital income

New €1,000 allowance to take effect in 2023

Residents of Germany are set to benefit from an increased tax allowance on capital income, starting from 2023. The new allowance, which will stand at €1,000 per year, represents a significant increase from the previous allowance of €801.

What is capital income?

Capital income refers to income generated from investments, such as dividends, interest, and capital gains. In many countries, capital income is taxed at a different rate than wage income.

Impact of the increased allowance

The increased allowance will effectively reduce the amount of capital income that is subject to taxation. This will provide a financial benefit to German citizens who have investments.

The tax office will automatically increase the existing allowances for all taxpayers. This means that individuals do not need to take any action to benefit from the increased allowance.

Additional information

It is important to note that the increased allowance does not apply to capital gains that are realized from the sale of real estate.

For more information on capital gains tax in Germany, please consult the Federal Central Tax Office website.