Germany Capital Gains Tax
Detailed capital gains tax rates and rules for Germany in 2026.
Capital gains from financial investments are subject to a flat-rate withholding tax (Abgeltungsteuer) of 25%, plus a 5.5% solidarity surcharge on the tax amount, resulting in an effective rate of 26.375%. Church tax may further increase the rate. This flat rate applies to interest, dividends, and capital gains from publicly traded securities. Capital gains from the sale of private real estate held for 10 years or less are taxed at the individual's marginal income tax rate.
Short-Term Rate
26.4%
Long-Term Rate
26.4%
Standard Rate
26.4%
Exemptions
- Annual saver's allowance (Sparer-Pauschbetrag) of €1,000 per individual (€2,000 for married couples filing jointly)
- Gains from the sale of owner-occupied residential property are exempt if the property was used as the principal residence for at least the last two consecutive years
- Gains from the sale of other private real estate are tax-free if the property was held for more than 10 years
- Shares acquired before January 1, 2009 may be exempt under grandfathering provisions
How Germany Capital Gains compares
Germany’s capital gains tax rate of 26.4% is the 25th highest of 203 countries TaxAtlas tracks, above the global average of 13.8% and Europe’s regional average of 17.8%.
