Calculate Abgeltungsteuer (25% flat tax) on dividends including Soli and church tax.
How are dividends taxed in Germany?
Dividends are subject to a flat 25% Abgeltungsteuer (withholding tax), plus 5.5% Solidarity Surcharge on the tax (1.375% effective), and church tax if applicable (8-9% of the tax). A Sparerpauschbetrag of EUR 1,000 (single) or EUR 2,000 (joint) is deducted first.
What is the total effective rate on dividends from a GmbH?
GmbH profits are first taxed at the corporate level (approx. 30%), then the distributed dividend is taxed again at 25% plus Soli. The combined effective tax rate on profits distributed as dividends is approximately 48-50%, making the salary vs. dividend optimization important.
Can I opt for the income tax assessment instead?
Yes. If your personal income tax rate is below 25%, you can apply for a Gunstigerpfufung in your tax return. The tax office will then tax your capital income at your personal rate instead of the flat 25%, saving you money.
Disclaimer: These calculations are estimates based on 2025 German tax rules and should not be considered professional tax advice. Consult a Steuerberater for your specific situation.
How dividends are taxed, the Abgeltungsteuer rate, and when the Teileinkünfteverfahren helps
What tax do you pay on dividends in Germany?
Dividends are subject to 25% Abgeltungsteuer plus 5.5% Solidaritätszuschlag on the tax, giving an effective rate of 26.375%. Church members pay an additional 8% or 9% Kirchensteuer on the tax. Your bank withholds this automatically. On a €10,000 dividend, you pay about €2,638 in tax (without church tax), keeping roughly €7,362.
How does the Sparerpauschbetrag reduce your dividend tax?
Every person has a €1,000 Sparerpauschbetrag (€2,000 for married couples) that shields investment income from tax. If you receive €3,000 in dividends, only €2,000 is taxed. Set up a Freistellungsauftrag at your bank to avoid having tax withheld on the first €1,000. If you have accounts at multiple banks, split the allowance between them.
What is the Teileinkünfteverfahren and when should you use it?
If you own at least 25% of a company (or 1% with a management role), you can opt for the Teileinkünfteverfahren. Only 60% of the dividend is taxed at your personal income tax rate. This is better than the flat 26.375% when your personal rate on the 60% portion is lower. It also lets you deduct 60% of expenses related to the shares, such as interest on loans to buy them.
How are foreign dividends taxed?
Foreign dividends are subject to German Abgeltungsteuer just like domestic ones. However, the foreign country often withholds its own tax first. Under double tax treaties, this is usually limited to 15%. Your German bank credits the foreign tax against your German tax. On a US dividend of €1,000, the US withholds €150, and Germany charges €263.75 minus the €150 credit = €113.75 extra.
Are dividends from your own GmbH taxed differently?
Dividends from your own GmbH face double taxation: the GmbH already paid about 30% corporate tax on the profit, and you then pay 26.375% Abgeltungsteuer on the dividend. The total tax burden on distributed profits is roughly 48%. That is why many GmbH owners pay themselves a salary (deductible for the GmbH) rather than taking large dividends.
How do dividend ETFs and funds differ tax-wise?
Since 2018, German fund taxation uses the Teilfreistellung system. Equity funds (at least 51% shares) get a 30% tax-free portion. On €1,000 in distributions from an equity fund, only €700 is taxable. Mixed funds get 15% free, and bond funds get 0%. This partially compensates for taxes already paid inside the fund.
Bundesfinanzministerium-Aligned: Based on 2025 Bundesfinanzministerium rates and thresholds. For personal advice, speak to a qualified Steuerberater (tax adviser).
Disclaimer: This calculator provides estimates based on current German tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
Related Calculators
Income Tax Calculator
Calculate your German income tax using the official 5-zone progressive formula.
Capital Gains Tax
Calculate tax on investment income including Soli surcharge and church tax.
Corporate Tax
Calculate Körperschaftsteuer, solidarity surcharge and trade tax for your GmbH.
GmbH vs UG
Compare GmbH and UG company structures — capital, costs and tax implications.