How to submit an exemption order?

In accordance with the German tax code, customers in Germany have the right to earn income derived from capital up to € 1,000 tax free! As an N26 customer you can use this investor’s allowance to pay less taxes on the interest you earn on your N26 Instant Savings account.

Keep in mind! The € 1,000 tax exemption applies on a yearly basis and to the total of all financial investment income at N26 and other financial institutions. It’s your responsibility to keep track of how you allocate your investor’s allowance and to not exceed it! 

You can let us know how much of your investor’s allowance you want to use for your Instant Savings:

  1. Login to the app
  2. Tap Finances
  3. Tap on your Instant Savings account
  4. In the top right corner, tap Settings
  5. Tap tax information
  6. Tap on Exemption Orders
  7. Select the year and enter the amount to exempt
  8. You can toggle the switch to Auto-renew this amount every year

Frequently asked questions

Can I change the amount or submit a new exemption order?

Yes, you can request changes to your exemption order of the current year up until January 31 of the following year. If you only used a portion of your investor’s allowance you can increase it up to € 1,000. You can also reduce it in case you want to use a portion of it somewhere else. However, you cannot reduce it below the limit you already used at N26.

Is my exemption order retroactively valid for the current year?

Yes. You can submit your exemption order up until January 31 of the following year. Upon reception, N26 will payout overwithheld taxes within 5 working days.

Can I carry over my unused investor’s allowance to the following year?

No.

What happens if I exceed my investor’s allowance?

Please note that, as any German financial institution, we are required to report to the German tax authorities your capital income exempt from tax due to exemption orders (and non-assessment certificates.). Therefore, in case the total of your exemption orders submitted to different German financial institutions exceed the respective investor’s allowance applicable to you (e.g. currently, singles €1,000; jointly-taxed couples €2,000), it is your responsibility to report to the German tax authorities (in your personal income tax return) your capital income unduly exempt from tax by us and other financial institutions because you submitted exemption orders exceeding the investor’s allowance.

When do I receive my tax certificate?

We automatically send your annual tax certificate to you in the first quarter of the following year.

Do I have to pay taxes if I move out of Germany?

You don't have to pay withholding taxes applicable in Germany if you move to another supported country. In that case, please make sure to update your registered legal address so we can stop withholding these taxes for you. However, please keep in mind: It is your responsibility to inform yourself about applicable taxes in the country you're moving to and to declare and pay your taxes there accordingly. If you're unsure about the taxes in your new location you can consider closing your Instant Savings account and moving the funds to your main account.

What is a Non-Assessment Certificate (NAC) and how can I submit it?

Non-Assessment Certificates are issued by your local tax office only under certain conditions. Upon reception of your NAC, N26 will refrain from applying the withholding tax. NACs are valid for 3 years starting from 1 January and ending 31 December. However, the starting point may vary in the first year. In addition, the NAC may be revoked by the tax office in case you no longer meet the requirements for qualifying. Please send the original NAC to the following address: N26 Ag, Voltairestraße 8, 10179 Berlin, Deutschland.

Afterwards, you can check the status of you NAC at any time directly in the app:

  1. Login to the N26 app
  2. Tap Finances
  3. Tap on your Instant Savings account
  4. In the top right corner, tap on Settings
  5. Tap on tax information
  6. Tap on Non-Assessment-Certificate

Learn more about exemption orders in our Blog: Tax exemption order — what it is and why you need one