Do I have to pay taxes on my investment?

Yes, if you earn interest from your stock gains and/or dividends, you will be taxed at 25% (plus solidarity contribution and church tax, if applicable). Interest will be directly credited as an investment (reinvestment), which means that there is no immediate taxation. This has the advantage that the money can generate more interest, as no taxes have to be paid initially. However, in the case of sale, taxes will always have to be paid.

On capital gains, however, the German government has given us a tax break, known as the ‘Tax Exemption’ (or ‘Steuerpauschbetrag’), where you don’t have to pay tax on gains of up to €1,000 (for individuals, €2,000 for married couples and registered civil partnerships).

That is why it is well worth setting this up with UnitPlus, so that you can benefit from the tax relief. Generally, taxes are paid automatically by UnitPlus – so you don’t have to worry about doing anything wrong here.

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