How do we manage Taxes in Germany for Stocks and ETFs?

Yes, but no stress — we’ll automatically withhold and transfer this tax percentage to the authorities. The following taxes are supported by our Stocks and ETFs services for German tax residents:

1. End-user specific taxes (for German tax residents only): All capital gains are taxed according to capital gains tax (25 %), solidarity surcharge (5.5 % of 25 %), church tax (8 % or 9 % of 25 %), if applicable (e.g. not applicable in case of a loss).
2. Transaction-related taxes: Across Europe some countries charge a tax on buying financial securities. The tax is applicable to instruments originated in the respective countries (e.g. stocks from France or Spain). Two examples for financial transaction taxes currently supported and withheld by our Stocks and ETFs:
   1. French FTT (0.3%) on top of the buy order amount. FFTT applies to shares of French companies with a market capitalization of more than EUR 1 billion on 1st of December.
   2. Spanish FTT (0.2%) on top of the buy order amount. SFTT applies to shares of Spanish companies with a market capitalization of more than EUR 1 billion on 1st of December.
   3. Italian FTT (0.1%) on top of the buy order amount. IFTT applies to shares of Italian companies with an average market capitalization of less than EUR 500 million in the month of November.
3. Vorabpauschale tax: a German tax on future income distributions which originate within accumulating funds like ETFs. The Vorabpauschale is dependent on the current central bank interest rate and its changes as well as the accumulated profits within the instrument.

In the app, you can choose how much of your Exemption Order to apply to your Stocks and ETFs. Any taxes withheld along the way will be optimized, and you'll receive a tax refund. If you're using our Instant Savings product as well, you can split your exempt amount between both products to maximize your capital gains efficiency.

A non-assessment certificate (Nichtveranlagungsbescheinigung) allows you to keep all the gains you earn on your investments without having to pay withholding tax. You can get one from your local tax office (Finanzamt) if your taxable income is below a certain amount. Once you get the certificate, mail it to N26 to remove withholding tax from your Stocks and ETFs account.

We need your German tax ID because some taxes apply on Stocks and ETFs investments, we're required to withhold and pay your taxes to the local tax authorities.

In Germany, your tax identifier (Steueridentifikationsnummer, also known as Steuer-ID, Steuer-IdNr, or Identifikationsnummer) is a unique, 11-digit number assigned to every resident for tax purposes. Here's are some examples of where you can find your Steuer-ID:

• Letter from the Federal Central Tax Office (Bundeszentralamt für Steuern)
• Your Income Tax Statement (Lohnsteuerbescheinigung)

Tax statements are issued between March/ April for the previous year. We’ll automatically share them with you on the App once ready.