Well, I catch it "until you take out of the pension", which means even if 100 years passed from the initial investment to the ETF, any amount of appreciation (capital gains) will be taxed at least 25% by the Finanzamt. Therefore, you need to check, IMHO, either having an apartment for rent, as it is tax free after 10 years, or crypto currency investment as it is tax free after 1 year. Am I right? 🙂
May I suggest you a video, comparing main low cost brokers, such as Degiro, Scalable Capital and Trade Republic? It would be nice and helpful, as it’s sometimes difficult to find out what’s better cost benefit option.
What happens when you sell at a loss? Do you get a credit to apply to future gains? Also, what happens if you have a virtual gain $100 in year 1, and then year 2 sell for $900. Do you get a rebate on the tax you pre-paid in year 1?
To be fair, when cash in paid out in dividends and interest it is taxed even in the US - there is no such things as a mutual fund or ETF that can avoid paying tax for income it receives. This was a nice tax loophole that unfortunately closed, but its not the worst things I've ever seen. Good video explaining the Vorabpauschale!
Hi I have one question, I stay in Germany, I am planning to trade in ETF with one strategy will this be a problematic with taxes and planning to have intractive broker as mz primary broker for ETF trades
Great video! However, I believe there is an error in the calculation: 17,85€ would be the Vorabpauschale for 1000€ Fictional Profit, not for €100. Am I wrong?
Thank you for double-checking our numbers. The preliminary capital gains tax („Vorabpauschale“) is based on the invested amount on Jan 1 of any given year, not on the fictional profit during that year. Therefore, the Vorabpauschale for 1.000€ invested is always 17,85€ no matter how much profit you make. Meaning both Axel and you are correct. 👍
Hi@@PerFinEx, thanks for this explanation, but in the video you show the calculation based on the fictional profit (100), not the initial amount (1000)... if the initial amount is the only thing that counts, why do we even need to consider the 100?
@@ireallyamayuube just for anyone else wondering, 100 matters because its a positive value: meaning you did actually make a fictional profit that year. if this number were 0 or less, there wont be any capital gains tax for that year because... you guessed it: there is no fictional profit or there was a fictional loss. Funnily, in case of the fictional loss if you follow the calculations, it might mean that the Finanzamt will actually have to pay YOU, but they don"t do it because paying taxes suck :'(
What happens if we sell at loss? Using your example: Jan 2023 I have 1000e Jan 2024 I have 1100e I pay 3.30e taxes. What if in Jan 2025 I only have 900e and sell at 100e loss?
Yes, pensions in level 3 allow lumpsum payout. After the age of 62 you will receive additional tax benefits when withdrawing (either monthly pension or lumspum).
Great video! I have one question, does this kind taxation apply to zero coupon bonds as well? Let's say I buy a 15 year bond that gives 0% dividend and costs 70 per share. The taxes will be required just at the end of the 15 year period, or should I pay taxes each year on this kind of bond on the virtual profit (30% divided in 15 years)? Thanks
@@PerFinEx the bond on the market, will probably rise year by year to match the value 100 at the end of the period. So year to year the increase in value would be similar to accumulating ETF, hence my doubt.
How do you transfer your etfs to pension? Do you need to cash out first? Ive got 70k in VUAA and VWCE etfs and im considering moving to Germany. My broker is IB.
@@PerFinEx Once I sell the ETF in Germany I pay less taxes on the capital gain since I already paid taxes on it during the previous years for the Vorabpauschale. But, let's say that before selling the ETF, I will change my tax residence in another country. When I sell the ETF in the other country, how can I keep track of the Vorabpauschale to avoid double taxation?
Hello Sir, I wanted to clarify one small thing. I am a doctoral student in Germany and receive tax-free stipend. Meanwhile, I am trading in US stock market with IBKR broker. I am Pakistani national. My capital gains for 2023 is less than 1000 euros. Should I file this year's tax just because I am trading stocks? Because my stipend is already tax-free and my capital gains for this year is also tax free.
What if your profit is 0% because ETF didn’t grow at all, but you were paying in money whole year, so sum of money at the end of the year will be bigger because of your monthly payments. It will appear like profit to Finanzamt and you will be taxed this way? Based on your video, if Im not mistaken, they just look 1st January total sum vs 31 December and if it’s bigger you pay preliminary tax?
not an expert but I don't think it works like that. they will consider how much money was invested during the tax year and how much was the profit overall and then calculate the tax.
If I understood correctly if I have a profit of 1000 EUR and it doubles every year (absurd case I know but follow me) that would mean that after 10 years I would have just in profits 1.024.000, just over a millionEUR, that means 1024000*2.55%*0.7*0.7*26,375% = 3374EUR which would be the taxes I would have to "preventively" pay for that year right? even if I sum the whole taxation for the 10 years together it would be 6756EUR which I don't find that bad. I am of course also against this preventive tax. Did I understand correclty? thanks a lot!
Vielen Dank für diesen Inhalt, Investitionen in den digitalen Markt sind wirklich ratsam, trotz der jüngsten Ereignisse auf dem digitalen Markt mache ich immer noch etwa 29.000 Gewinn aus meinen Investitionen alle zwei Wochen
Darf ich fragen, wie Sie so viel auf dem digitalen Markt verdienen können? Ich handle/investiere jetzt schon seit einiger Zeit und mache immer wieder Verluste.
Es ist wirklich ratsam, in den digitalen Markt einzutauchen, aber Sie benötigen die Anleitung eines Experten und mit David G. Eichhorn können Sie nichts falsch machen
Ich kenne David Gordon Eichhorn gut. Er ist Portfoliomanager und Anlageberater, der sich während seiner Tätigkeit bei JP Morgans einen Namen gemacht hat. Als renommierter Investor hat David immer wieder seine Expertise in Anlagestrategien unter Beweis gestellt. Er war intensiv mit der Verwaltung von Portfolios und der Beratung von Kunden beschäftigt und hat ihnen geholfen, sich in den Komplexitäten der Finanzmärkte zurechtzufinden.
Let's avoid taxes together: perfinex.de/meeting
Well, I catch it "until you take out of the pension", which means even if 100 years passed from the initial investment to the ETF, any amount of appreciation (capital gains) will be taxed at least 25% by the Finanzamt. Therefore, you need to check, IMHO, either having an apartment for rent, as it is tax free after 10 years, or crypto currency investment as it is tax free after 1 year.
Am I right? 🙂
May I suggest you a video, comparing main low cost brokers, such as Degiro, Scalable Capital and Trade Republic? It would be nice and helpful, as it’s sometimes difficult to find out what’s better cost benefit option.
Great idea! We'll put it on the list.
What happens when you sell at a loss? Do you get a credit to apply to future gains? Also, what happens if you have a virtual gain $100 in year 1, and then year 2 sell for $900. Do you get a rebate on the tax you pre-paid in year 1?
To be fair, when cash in paid out in dividends and interest it is taxed even in the US - there is no such things as a mutual fund or ETF that can avoid paying tax for income it receives. This was a nice tax loophole that unfortunately closed, but its not the worst things I've ever seen. Good video explaining the Vorabpauschale!
Hi I have one question, I stay in Germany, I am planning to trade in ETF with one strategy will this be a problematic with taxes and planning to have intractive broker as mz primary broker for ETF trades
Great video, thanks
Great video! However, I believe there is an error in the calculation: 17,85€ would be the Vorabpauschale for 1000€ Fictional Profit, not for €100. Am I wrong?
Thank you for double-checking our numbers. The preliminary capital gains tax („Vorabpauschale“) is based on the invested amount on Jan 1 of any given year, not on the fictional profit during that year. Therefore, the Vorabpauschale for 1.000€ invested is always 17,85€ no matter how much profit you make. Meaning both Axel and you are correct. 👍
Hi@@PerFinEx, thanks for this explanation, but in the video you show the calculation based on the fictional profit (100), not the initial amount (1000)... if the initial amount is the only thing that counts, why do we even need to consider the 100?
@@ireallyamayuube just for anyone else wondering, 100 matters because its a positive value: meaning you did actually make a fictional profit that year. if this number were 0 or less, there wont be any capital gains tax for that year because... you guessed it: there is no fictional profit or there was a fictional loss. Funnily, in case of the fictional loss if you follow the calculations, it might mean that the Finanzamt will actually have to pay YOU, but they don"t do it because paying taxes suck :'(
What happens if we sell at loss?
Using your example:
Jan 2023 I have 1000e
Jan 2024 I have 1100e
I pay 3.30e taxes.
What if in Jan 2025 I only have 900e and sell at 100e loss?
@KATHIMORGAN1 is her user name for help.
no tax, no deductions. you just lose money.
Are there private pensions that allows lump sum withdrawal of our entire contribution +profit - taxes without age restrictions?
Yes, pensions in level 3 allow lumpsum payout. After the age of 62 you will receive additional tax benefits when withdrawing (either monthly pension or lumspum).
Do we need to pay Vorabpauschale and capital gain tax (during sell) as well?
Great video
Great video! I have one question, does this kind taxation apply to zero coupon bonds as well? Let's say I buy a 15 year bond that gives 0% dividend and costs 70 per share. The taxes will be required just at the end of the 15 year period, or should I pay taxes each year on this kind of bond on the virtual profit (30% divided in 15 years)? Thanks
As you make no profits in your example, there is no preliminary tax („Vorabpauschale“). 👍
@@PerFinEx the bond on the market, will probably rise year by year to match the value 100 at the end of the period. So year to year the increase in value would be similar to accumulating ETF, hence my doubt.
How do you transfer your etfs to pension? Do you need to cash out first? Ive got 70k in VUAA and VWCE etfs and im considering moving to Germany. My broker is IB.
This pre-tax is really bullshit...
Great video! In case I will move to another country without selling my ETFs. Will the Vorabpauschale be returned to me?
Why would the Vorabpauschale be returned to you in that case?
@@PerFinEx Once I sell the ETF in Germany I pay less taxes on the capital gain since I already paid taxes on it during the previous years for the Vorabpauschale.
But, let's say that before selling the ETF, I will change my tax residence in another country.
When I sell the ETF in the other country, how can I keep track of the Vorabpauschale to avoid double taxation?
Hello Sir,
I wanted to clarify one small thing. I am a doctoral student in Germany and receive tax-free stipend. Meanwhile, I am trading in US stock market with IBKR broker. I am Pakistani national. My capital gains for 2023 is less than 1000 euros. Should I file this year's tax just because I am trading stocks? Because my stipend is already tax-free and my capital gains for this year is also tax free.
he said in the vid if you have less than 1000 in profits it is tax free. Enjoy
What if your profit is 0% because ETF didn’t grow at all, but you were paying in money whole year, so sum of money at the end of the year will be bigger because of your monthly payments. It will appear like profit to Finanzamt and you will be taxed this way? Based on your video, if Im not mistaken, they just look 1st January total sum vs 31 December and if it’s bigger you pay preliminary tax?
i'm not an expert but it does not work like that. they can check that the money was your invested money and not part of the profit.
@@mohammadheidari1888 thanks, I hope this is the case 😂 I also expect it to be like this to be honest…
Does the fact that they are counted from Jan 1 means that if I buy more share on, let's say, the 1st March, those won't count until the next year?
not an expert but I don't think it works like that. they will consider how much money was invested during the tax year and how much was the profit overall and then calculate the tax.
Does this only applies if your depot is in Germany? Thanks
This applies as long as you are a tax resident of Germany, independent of where your Depot is.
So, I should sell my VUSA and buy VUAG apparently...
What if you sell at a loss? Can that offset other gains? Can you carryover losses to future years?
Should I invest in Dist or Acc, iShares S&P 500 USD ?
If I understood correctly if I have a profit of 1000 EUR and it doubles every year (absurd case I know but follow me) that would mean that after 10 years I would have just in profits 1.024.000, just over a millionEUR, that means 1024000*2.55%*0.7*0.7*26,375% = 3374EUR which would be the taxes I would have to "preventively" pay for that year right? even if I sum the whole taxation for the 10 years together it would be 6756EUR which I don't find that bad. I am of course also against this preventive tax. Did I understand correclty? thanks a lot!
Vielen Dank für diesen Inhalt, Investitionen in den digitalen Markt sind wirklich ratsam, trotz der jüngsten Ereignisse auf dem digitalen Markt mache ich immer noch etwa 29.000 Gewinn aus meinen Investitionen alle zwei Wochen
Darf ich fragen, wie Sie so viel auf dem digitalen Markt verdienen können? Ich handle/investiere jetzt schon seit einiger Zeit und mache immer wieder Verluste.
Ich rate Ihnen, den Handel auf eigene Faust einzustellen, wenn Sie weiterhin Verluste machen.
Es ist wirklich ratsam, in den digitalen Markt einzutauchen, aber Sie benötigen die Anleitung eines Experten und mit David G. Eichhorn können Sie nichts falsch machen
Ich kenne David Gordon Eichhorn gut. Er ist Portfoliomanager und Anlageberater, der sich während seiner Tätigkeit bei JP Morgans einen Namen gemacht hat. Als renommierter Investor hat David immer wieder seine Expertise in Anlagestrategien unter Beweis gestellt. Er war intensiv mit der Verwaltung von Portfolios und der Beratung von Kunden beschäftigt und hat ihnen geholfen, sich in den Komplexitäten der Finanzmärkte zurechtzufinden.
Wie kann ich ihn erreichen, wenn es Ihnen nichts ausmacht, dass ich frage?