I am 24 years old and have recently started working as a software developer in Germany. At the moment I have not commitments for family or kids and I believe this is the right moment for me to actually start saving up and equipping my financial future. I am very interested in Trading and Real Estate, but I believe real estate requires capital. So at the moment I want to make investments .
Since I am an expat, I am not sure about the German laws that concerns investments and taxation. Normal taxation itself is a nightmare, so I would like to ask whether anyone can help me point out the services I might be better off paying for that can help my investment plan. Something like Financial advisor or so.
After careful research I came across Vanguard s&P 500 index fund, how effective is it in Germany and whether there any specific things to know before going with it. Also I am thinking about using eToro as the broker, I see they do not charge any provision but one has to pay 5 dollar flat on any payouts. Are there any hidden charges for eToro and can anyone help me with their experience with eToror.
I am also confused about taxation. So am I also taxed on the profits I made which are not cashed out or am I just taxed for the income that is cashed out ? Incase if I reinvest the profits entirely, do I still need to pay tax ? Thank you very much in advance.