Tax free Profit – Exemption order in Trade Republic

In Germany, the withholding tax applies to capital gains such as price gains on shares, dividends and overnight interest. By default, Trade Republic automatically takes care of forwarding your taxes to your tax office.

However, up to an amount of € 801 per year as a single and € 1602 as a married couple you do not have to pay any tax on investment income, so you can have this amount as tax free profit. The Government grants you this tax allowance even if your profits are already above the tax allowance. You can create an Exemption order in Trade Republic to take advantage of this tax free allowance. If you havn’t created this order you can always get you profits once you submit your tax returns. But why let the Government keep your money? Why not invest it and make your money make more money!

*None of this is meant to be considered as investment advice, as I am not a financial expert and am only sharing my experience with stock investing. The video and article are accurate as of the posting date but may not be accurate in the future.

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