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Stocks - Tax Withholding DE & AT

Tax withholding in Germany

Bitpanda applies the FIFO logic to tax withholding in Germany. It means the stocks and shares first bought will also be the first sold in a sell or swap events. The German withholding tax regime is in place since 2009, so any stocks bought after this date will be subject to tax withholding. 

Tax Overview: Germany
Tax rate 25%
Solidarity tax 5.5%
Church tax Depends on your state
Holding duration No abatement in DE
Taxable events Sells, Swaps and Dividends

Pessimistic Tax withholding:
In case the tax calculation has a delay we will deduct 29% from the gross sell proceeds as an initial tax withholding amount. This amount is preliminary. Once the correct tax calculation is done, Bitpanda will reimburse the difference or all of it depending on the tax calculation. This allows immediately to continue trading with the majority of the proceeds from a sell instead of having to wait until the tax calculation is done.

What information will be needed by Bitpanda to withhold the current amount of taxes?

1

The TIN

Providing your Tax Identification Number allows us to automatically check your church tax status.

2

The Confirmation

This step must be completed while redoing the self-verification flow.

Moving outside DE

Exception If you hold German stocks, we will continue withholding taxes on any dividends from these stocks, even after you moved out.

Tax exemptions 

Sparerpauschbetrag €1,000 / Year

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Tax-Free Limit: Up to €1,000 per single user (per year) in capital gains and income can be exempt from taxes.

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Multi-Broker: You can split your €1k total across different brokers as you see fit.

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In-App Control: You must enter the desired amount in-app.

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TIN: Your TIN is required in order to declare any amount.

Tax Withholding in Austria

In Austria, the withholding tax for Stocks & ETFs is aligned with the existing Crypto tax framework. Since the residency requirements are identical, your current tax status for crypto will automatically apply to your stocks, no further action is required

Tax Overview: Austria
Tax rate 27.5% (KESt)
Tax Residency Permanent residence (183 days/year) in AT
Exit Tax Moving abroad triggers tax on "hidden reserves" (unrealized gains)
Taxable events Sells, swaps and dividends

Tax withholding available on

Sell / Swap / Dividends
Taxes are always withheld in these cases. Swapping stocks is considered a taxable event in Austria.
Bitpanda card
Using stocks as a payment option is treated as a sell and triggers an immediate tax calculation on your gains.
Pessimistic tax withholding
In case the tax calculation has a delay we will deduct 27.5% from the gross sell proceeds as an initial tax withholding amount. This amount is preliminary. Once the correct tax calculation is done, Bitpanda will reimburse the difference or all of it depending on the tax calculation. This allows immediately to continue trading with the majority of the proceeds from a sell instead of having to wait until the tax calculation is done.

Grandfathered assets (Altbestand)

  • A grandfathered asset (Altbestand) is an investment that was bought before 01.01.2011, for example shares. If such an asset is transferred to Bitpanda, it is treated as newly acquired (Neuvermögen) under the current tax regime for tax withholding purposes. 
  • This means that taxes may be withheld when the asset is sold. Any tax that should not have been paid can be reclaimed later through the personal tax return.

How do I receive the information?

Tax reports
Two separate reports will be available each year: one specifically for stocks and one for crypto assets.
Important: Loss Netting Crypto gains and losses will not be netted with real stocks gains and losses. These asset classes are handled separately for tax purposes.