Should I pay capital tax if I don't sell the stock ?

I’m living in Germany and let’s say I’ve invested 10k$ to ABC stock and made 5k$ profit. But didn’t sell it, just keeping it for long term. Then should I pay capital tax for that stock yearly ? Or maybe I shouldn’t pay tax because I haven’t sold the stock or withdrawn the profit from trading212 ? Can someone please explain these things to me ?

Profit is not made until you sell.

Thus cannot pay tax for something you haven’t profited at.

2nd point, it depends per country, in some countries if you keep the share for certain amount of time, then sell, you don’t have to pay capital tax.

For instance in Croatia if I keep stock for 2 years period, if sold later , it no longer is required to pay capital gain tax.

Probably there are German users who could give info on German tax, but capital tax is paid only for transactions that made you profit, meaning you sold stock for profits, not just in Application gains. :slight_smile:

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