Investing & ETFs
ETFs sound straightforward. Then Germany adds taxes.
From your first Sparplan to understanding costs and the Vorabpauschale, at whatever pace suits you.
Not sure where to begin?What is an ETF, really?New to this? Start with what an ETF actually is. The savings plan, the costs and the tax rules all build on it.
Other questions in Investing & ETFs
- How do I invest a little every month?Setting up an ETF Sparplan, what it costs and what it doesn't do.7 min read
- Acc or Dist: which ETF version should I pick?Payouts aren't extra return. Here's what actually differs.7 min read
- If my ETF costs 0.2%, why is there more to pay?TER, tracking difference, spreads and fees, all in one place.8 min read
- Why is 30% of my ETF gain tax-free?The Teilfreistellung, which funds get it and which don't.6 min read
- Why was I taxed on an ETF I didn't sell?The Vorabpauschale, worked through with the 2026 rate.11 min read
- How much tax do I pay on ETF gains?25% plus a surcharge, after a €1,000 allowance and the 30% discount.7 min read
Investing in Germany, in one paragraph
An ETF is a basket of many investments you buy in one go. Invest regularly over a long time and growth starts building on growth. Germany taxes the gains at a flat rate, after a yearly allowance, and equity funds get a further discount.
One ETFYou buy units of one fund.
Many companiesThe fund holds the companies its index lists, often hundreds or thousands.
ETF words, translated
- ETF
- Exchange-traded fund: one fund that holds many investments.
- Sparplan
- A savings plan that buys an ETF automatically every month.
- TER
- The yearly running cost of a fund, taken from its value.
- Teilfreistellung
- The tax-free part of fund income: 30% for equity funds.
- Vorabpauschale
- A yearly advance tax on funds that pay out little.
Try it with your own numbers
Investment Tax CalculatorMade a profit on your ETF? What might the tax be? (Rules 2026, checked)Live