Taxation of Options in Germany
A comprehensive guide to the tax treatment of options profits in Germany.
Capital Gains Tax (Abgeltungsteuer)
Profits from options trading are subject to the capital gains tax of 25% (plus solidarity surcharge 5.5% and possibly church tax). Total approx. 26.375%.
Saver's Allowance
Every investor has a tax-free allowance of €1,000 per year (€2,000 for married couples). Profits up to this amount are tax-free.
Loss Offsetting
Losses from options trading can be offset against gains from capital investments. Losses can be carried forward to the following year.
Reporting Obligation
German brokers automatically withhold taxes. With foreign brokers, profits must be declared in the tax return (Annex KAP).
Example Calculation
With a profit of €5,000 (after deducting the allowance of €1,000): €4,000 × 26.375% = €1,055 tax liability.
Tax Optimization
Use Exemption Order
Make sure you have set up your exemption order with your broker. This way, profits up to €1,000 (€2,000 for married couples) are automatically tax-free.
Carry Forward Losses
Losses from the previous year can be offset against current year profits. Submit an application to the tax office if your broker has not automatically carried forward the losses.
Optimize Loss Offsetting
Realize losses in the current year to offset them against profits. This reduces your tax burden. But beware of wash-sale rules!
Use Multiple Brokers
With multiple brokers, you can split your exemption order (max. €1,000 total). German brokers automatically withhold taxes, with foreign brokers you must report yourself.
Important Dates
31. December
Last day for loss offsetting in current year
31. May
Deadline for tax return (without tax advisor)
Annually
Broker sends annual tax certificate (by end of February)
Important Notice
This information does not constitute tax advice. Tax treatment may vary depending on individual circumstances.
For complex situations or high profits, we recommend consulting a tax advisor with expertise in securities trading.