Capital Gains Tax

Germany taxes capital gains of private investors. Generally, this also includes capital gains from the sale of real estate, stocks and other assets. However, capital gains derived from sale of real estate will not be taxed if the period between acquisition and selling the property exceeds ten years or in the year of the sale and the 2 preceding years, if the property was used as a home by the seller. Capital gains derived from the sale of other privatly held assets will not be taxed if the period between acquisition and selling the asset exceeds one year. Special rules apply to capital gains derived from shares. Since January 1st 2009, Germany levies a withholding tax (Abgeltungsteuer) amounting to 25% of the gains.