What is the capital gains tax rate on index funds in Germany?

The headline capital gains tax rate in Germany is 26.375%. Abgeltungssteuer (withholding tax). Allowances, holding periods and tax-advantaged accounts can change what you actually pay.

How much tax would I pay on a $100,000.00 gain in Germany?

At the headline rate of 26.375%, a $100,000.00 gain would attract roughly $26,375.00 in capital gains tax, leaving $73,625.00 before any allowances.

How does Germany compare with the rest of EU?

The average headline capital gains rate across EU in our dataset is 21.5%, so Germany at 26.375% is above the regional average.

Index Fund Taxes in Germany

Investors in Germany face a headline capital gains rate of 26.375% on index funds and ETFs. Abgeltungssteuer (withholding tax).

Headline rate: 26.375%
Tax on a $100,000.00 gain: $26,375.00
EU average: 21.5%

What this means for your returns

Tax applies to your gain, not your whole balance. If you invest and your portfolio grows by $100,000.00, a 26.375% rate leaves you with $73,625.00 of that growth before allowances.

Because the tax is usually triggered when you sell, holding for longer defers it and lets the untaxed amount keep compounding. That deferral is one of the structural advantages of buy-and-hold index investing over frequent trading.

Run your own projection with Germany tax applied →

How Germany compares in EU

Capital gains tax rates across EU
Country	Capital gains rate
Belgium	0%
Luxembourg	0%
Bulgaria	10%
Romania	10%
Croatia	12%
Czech Republic	15%
Greece	15%
Hungary	15%

Frequently Asked Questions

Headline statutory rates as of 2025-01-01, collected from national tax authority publications. Rates exclude allowances, exemptions, tax-advantaged accounts, local surcharges and treaty relief, and change frequently. Confirm your position with a tax professional in Germany.