For example, I'm living in Germany and want to buy ETFs from Ing bank. If I buy an ETF for 10 Euro, then later I sell it for 15 Euro (but didn't withdraw the money out of the bank). At that time, does the tax occur? (e.g: will I have to pay the tax over 5 Euro profit).

It seems to be like that, but just want to confirm. Basically, I want to use the profit in the bank's broker account to buy more ETFs.

Another question, if an ETF pays the dividend each year, also if I don't withdraw money from the bank's broker account. Will I need to pay the tax (25% from the dividend)?

  • 2
    The search terms you are looking for is "Kapitalertragssteuer".
    – Philipp
    Commented Aug 5, 2020 at 9:46

1 Answer 1


The tax will be paid automatically when you sell your ETF. You will get some kind of billing, where everything is written in detail. Same for dividends. It doesn't matter if you don't withdraw the money, you still made profit with stocks = you need to pay taxes.

But you have a "Sparer-Pauschbetrag" of 801€ per year, which means 801€ per year are tax-free. If you don't applied for one already, you can get all taxes you paid (as long as your profit is <801€) back with your tax declaration.

  • Thanks for your explanation. It would help me in the future. Commented Aug 5, 2020 at 12:37
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    In addition for ETFs that do not pay dividends but reinvest them automatically (thesaurierend) the bank will collect advance payments on the tax each year. They are put against the due tax when you sell. This means that you should see little difference in taxes (including time) between an ETF that pays out dividends (tax on dividends is due on payout) and an ETF that does not pay out dividends. Commented Aug 5, 2020 at 19:25

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