Capital Gains Tax in Germany – Is it Automatically Withheld by Trading212?

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1

Hi everyone,

I’m based in Germany and trying to understand how capital gains tax (“Kapitalertragssteuer”) is handled by Trading212.

I initially assumed that, as a German tax resident, I would need to report and pay taxes on my own. However, I was surprised to see that I could submit a “Freistellungsauftrag” directly in the app. That term is normally used when a broker automatically withholds taxes and applies a tax exemption up to the legal allowance (currently €1,000).

Does this mean that Trading212 automatically withholds capital gains tax for German residents? Or is this only relevant for interest earned on uninvested cash held in the account?

Any clarification would be appreciated!

Thanks in advance.

2

Here is more information about this:

I was looking forward to trading212 coming to Germany just for this automatic tax deduction, but it is not happening for everything.