What is the Ka­pi­tal­er­trag­steu­er?

The capital gains tax (Kapitalertragsteuer or KapESt) is a type of income tax.1 It’s a flat 25% tax on all investment income above 1,000€ per year. It applies to profit, interests and dividends from stocks, ETFs and other financial investments. It does not apply to cryptocurrencies.2

You also pay solidarity tax (Solidaritätszuschlag) and church tax (Kirchensteuer) on investment income.

How taxes work in Germany

Sources and footnotes
  1. Wikipedia, §32d Abs. 1 EStG 

  2. wendl-koehler.de