Guide to Filing Trade Tax Returns for Investors in Germany

Table of Contents

Description

What is it?

Filing a trade tax return involves the submission of financial documents to pay the needed taxes based on trade activity. These taxes apply to capital gains and dividends to private investors in Germany. The Trade tax return should be filled properly to avoid legal implications.

Who needs it?

This guide is ideal for private investors, freelancers, traders, and business owners who have made capital gains from stock investments, crypto assets, or any other trade-in Germany.

Procedure

  1. Identify whether you are liable for tax depending on if your trade activity exceeds the annual tax-free allowance of 801 Euros.
  2. Prepare your Annual Tax Return. This is done through the official German tax software ELSTER (link ).
  3. Document all your trading activity for the year. Include every trade that was done, the purchase price, sale price, fees and other necessary details.
  4. Calculate the capital gains from these trades.
  5. Input the information into the necessary forms in ELSTER, such as ‘Anlage KAP’ for capital gains.
  6. Submit your tax return via ELSTER.
  7. Await feedback from the tax office.
  8. Pay the calculated tax if necessary.

Required Documents

  • Comprehensive list of all trades made throughout the year
  • Purchase and sale prices of assets
  • Fees and costs associated with trades

These can usually be obtained through yearly reports from your trading platform, such as Trade Republic or Interactive Brokers.

Providers that can do it for you

(We are currently curating the best providers. If you are or know a provider, please contact us or edit the page directly)

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Additional details

  • Note that the free allowance is 801 Euros for single individuals and 1602 Euros for married couples per year.
  • Cryptocurrency trades are also subject to tax, but are tax-free if held for more than one year.
  • Use tax consulting services if you are unsure about your obligations or need further assistance.

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