Trading profits are taxable in Germany. But the rules are complex — especially for active traders using AI signals. Here are the key facts.

Withholding Tax: 25% + Surcharges

Capital gains in Germany are taxed with the withholding tax (Abgeltungssteuer): 25% plus 5.5% solidarity surcharge, optionally plus church tax. Effective tax rate: 26.375% to 27.99% depending on church tax obligation.

The saver allowance of 1,000 euros per person (2,000 euros for couples) is tax-free. Only amounts above this are taxed.

What Gets Taxed?

Capital gains: Difference between purchase and sale price (FIFO principle)
Dividends: Gross dividend minus withholding tax
Interest: From savings accounts, bonds, broker interest
Option premiums: Premiums received from selling options

Loss Offsetting

Losses can be offset against gains — but with restrictions:

Stock losses can only be offset against stock gains (not ETF or dividend gains)
Other losses (ETFs, funds, options) can be offset against all capital income
Loss carryforwards are automatically transferred to the next year

Special Considerations for Active Traders

Loss Offsetting Limitation for Derivatives

Since 2021, losses from derivative transactions (options, futures, CFDs) can only be offset up to 20,000 euros per year against gains. A massive restriction for active traders — excess losses are carried forward.

Foreign Brokers

Interactive Brokers, eToro, and other foreign brokers do not automatically deduct withholding tax. You must report gains yourself in your tax return. The advantage: Your capital works all year untaxed. The disadvantage: You must do it yourself.

Crypto Taxation

Cryptocurrencies are not subject to withholding tax but to personal income tax rate. Important: After 1 year holding period, gains are tax-free.

Tax Optimization Tips

Use saver allowance: Set up tax exemption orders at all brokers
Realize losses: Strategically sell losing positions at year-end and immediately repurchase
Request favorable assessment: If your personal tax rate is below 25%, you can tax capital gains at the lower rate

Important Note: This article is not tax advice. For individual tax questions, consult a tax advisor.