Tax related question

Do we have to pay taxes on the dividends only or also on the stock earnings too (buy loo sell high).

The second one doesn’t make much sense to me because I am working and then I have invested my tax paid money into the stock by taking the risk of losing all the money. So taxing this amount is not fair.

Please guide me, I am from Germany.


in short, if you invest or trade via normal accounts, yes you have to pay tax. it is called capital gains and is viewed as taxable earnings as compared to your taxable income paid on a salary.


you have specifically mentioned “normal account”. Are there any other type of accounts which are subject to no capital gain tax?

those would be your local versions of what the UK calls an ISA. different countries will offer accounts that are in some form or another protected from tax with the idea of retirement or putting funds away for the future.

currently T212 only offers the ISA account for UK citizens/residents but there are hopes we can see more added for the various EU countries. so the ‘normal account’ when talking in regards to T212 is the Invest account.

as the example, the UK ISA account has a limit to how much you can put into the account every tax year, however once that money is inside you can earn whatever you want in dividends or capital gains and not have to pay any taxes for these profits. on the flip side, the losses also cannot be used to offset your capital gains tax outside of the ISA in other accounts. this money can then be withdrawn later on without limit, no taxes charged and get spent where you wish.

However, from what I can tell, Germany does not offer any such ISA accounts and even treat the UK ISA as an “offshore savings account” so cashing out the ISA after we have already moved to Germany for example would see us still having to pay the capital gains tax on the entire balance.

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