Capital gains tax for foreign individual shareholders

Like domestic shareholders, non-German shareholders will be subject to a deduction of tax at source at a rate of 26.375% by the bank paying out the dividend. However, the withholding tax rate may be reduced in accordance with an applicable income tax treaty.

Capital income is subject to a flat rate tax of 25% for private investors. In addition to this, investors will have to pay the so-called "solidarity" surcharge of currently 5.5% on the capital gains tax, i.e. 26.375%.

The difference between the tax actually withheld, including the solidarity surcharge, and the rate that applies under the double taxation treaty is reimbursed to the shareholder by the Federal Central Tax Office (Bundeszentralamt für Steuern) upon application. Please note that the reimbursement may be subject to further conditions.

 

Foreign Investors Help Desk:

Federal Central Tax Office (Bundeszentralamt für Steuern)
Department St III 2
An der Küppe 1
53225 Bonn, Germany

Tel. +49 228 406 1212
Fax +49 228 406 3119
service@germantaxes.info 

Application forms and more information can be requested from the website of the Federal Central Tax Office (Bundeszentralamt für Steuern): www.germantaxes.info

Dividends for the last 3 fiscal years

Capital gains tax withheld

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in euros
2017
2016
2015
(Cash) dividend per share 8.00 7.60 7.30
(Cash) dividend per 10 shares 80.00 76.00 73.00
- Capital gains tax (25% on the dividend) -20.00 -19.00 -18.25
- Solidarity surcharge (5.5% on the capital gains tax) -1.10 -1.05 -1.00
= Net dividend = 58.90 = 55.95 = 53.75