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I am relatively new to both investing and doing your taxes in Germany. I have read many articles, none of which were official documents because I couldn't find them (also I don't know German). But I still do not understand how to do my taxes and how much need pay.

How much tax do I have to pay for capital gains? Could you explain the calculations in a clear example?

For example, let say I bought an ETF which is paying dividends quarterly, and it doubled its price by the end of the fiscal year (say the price was 100Euros, and it paid 10Euros dividend).


Also, how can I verify that the tax I paid was correct? For example, if I pay fewer taxes than what I would need to, what happens?

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  • So, to clarify, the price of the ETF has risen from €100 to €200, and it's also paid €40 in dividends, meaning you have total gains of €140? – Tanner Swett May 26 '20 at 10:50
  • @TannerSwett Yes. (if you like, you can use another example too) – Our May 26 '20 at 12:21
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how can I verify that the tax I paid was correct?

Well, I see only two ways here:

  • learn German and read the tax law

    • you can also hire a tax advisor, but you'll anyways stay personally liable for paying the correct taxes.
  • Take everything you can remotely imagine to be relevant to your tax office's service desk and ask them whether you paid the taxes correctly and/or what declarations you need to file. They'll refuse to give tax advise but they'll confirm if the taxes were paid correctly and they'll tell you what forms to submit.


The ETF: here the calculation is somewhat complex, but here is a web site that explains and does example calculations (in German, though)

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