When are capital gains from shares tax-free?
Given the record prices, many shareholders are considering taking profits, following the classic investment rule "Only realised profits are real profits". The question arises: Does the state earn a share?
Yes and no, it depends on when the shares were purchased:
- Since 1 January 2009, capital gains from securities are generally subject to a flat withholding tax of 25 percent plus solidarity surcharge and, if applicable, church tax. However, this only applies if the securities were purchased after 2008.
- However, if you sell "old holdings" that were purchased before 1 January 2009, you can receive the capital gains tax-free without limit.
There is a small consolation for shareholders who invested after 2008: They can offset taxable capital gains against losses incurred in the past from shares purchased after 2008. And as long as the saver's allowance of 801 Euro/single (1.602 Euro/married) per year is not exhausted, investors can also receive capital gains from shares purchased after 2008 tax-free.
Also important to know: The "first in, first out" rule applies to the calculation of capital gains. This means that if an investor has purchased shares in a company several times and sells part of them, the tax office considers the shares purchased first to be the ones sold first.
