Dividend stocks for tax foxes

A few German equity securities are tax-privileged. In contrast, the tax authorities often access dividends from foreign stocks twice. One can free oneself from the differently large tax burden.

Exploit the cornucopia: you can save taxes in order to earn higher dividends.

NNot only wages, but also capital gains are taxed. Every saver in Germany is only allowed to collect 801 euros in interest and dividends tax-free each year. As soon as this exemption is exceeded, 25 percent capital gains tax plus solidarity surcharge and possibly church tax is due, resulting in a tax rate of 26.38 or – with church tax – around 28 percent. As a rule, this capital gains tax is paid immediately to the tax office by the custodian bank. For every 100 euros in dividends, only around 73 euros reach the shareholder. But this tax burden shouldn’t deter anyone from buying stocks.

Even if the federal government were to implement its plans and the investment income would no longer have to be taxed at a flat rate of 25 percent, but at the usually higher individual income tax rate, the following applies: It makes little sense to change your investor behavior simply because of the tax. Following the old, eternal principle: Don’t do anything just because of the tax. The primary goal is and remains to achieve the highest possible profit, i.e. the highest possible return, without taking on too high risks.