What works in Germany

Ordinary brokerage account (Depot)

Loss offset and the equity-fund exemption keep the cost moderate.

Tax cost a year (median)

1.9 pts

Median strategy, before / after tax

9.3% / 7.4%

S&P 500 held, after tax

10.3%

60/40 after tax (worst fall)

7.7% (-20%)

26 of 107 strategies beat a 60/40 after tax in this account with a smaller worst fall; 12 beat the S&P 500 held throughout. Returns a year, in EUR.

The rules

• 26.375% on gains (25% plus the solidarity surcharge); church tax takes it to about 28%.
• EUR 1,000 yearly allowance (Sparerpauschbetrag).
• Partial exemption: 30% of the gain on equity funds is tax-free, 15% on mixed funds, 0% on bond funds and ETCs.
• Losses offset gains in the same year and carry forward without limit.
• A small yearly deemed income on funds (Vorabpauschale, 2026 base rate 3.20%) is taxed in advance and credited at the sale.
• Leveraged ETPs such as WisdomTree 3x products are debt securities: no partial exemption.

Confidence in these rules: high. Checked 8 October 2026. Sources: Par. 20 EStG (capital income, loss pots); Par. 32d EStG (Abgeltungsteuer 25%, church tax formula, Guenstigerpruefung); Par. 23 EStG (private sales transactions, 1-year rule, Freigrenze).