Germany's overlooked capital‑gains tax exemption warned by finance expert

Margarethe Honisch, a finance expert and founder of Fortunalista, says the Freistellungsauftrag is the most frequently forgotten tax tool for investors in Germany. It lets individuals claim a tax‑free allowance of €1,000 per year (or €2,000 for married couples) on capital‑income such as interest, dividends and realized gains.

Without a Freistellungsauftrag, banks automatically withhold the 25 % Abgeltungssteuer (plus solidarity surcharge and possible church tax) on every euro of earnings. Honisch illustrates that a €20,000 ETF portfolio earning a 7 % return would be taxed €364 instead of €104, a loss of €260 each year – an amount that can be avoided with a five‑minute setup. The advice is highlighted in a free online workshop on retirement planning for women.