Capital gains tax relief

The Federal Central Tax Office grants German and foreign taxpayers relief from capital gains tax in special procedures:

Collective application procedure

The Federal Central Tax Office refunds capital gains tax and the solidarity supplement on specific investment income (e.g. from shares, profit participation rights and shares in a cooperative) to shareholders with unlimited tax liability in the anticipated refund procedure.

The collective application procedure may only be carried out by financial institutions or cooperatives.

Individual application procedure for parties with unlimited tax liability

Tax-exempted corporations, associations, corporate funds, German legal entities under public law (e.g. cities or municipalities) or not-for-profit or charitable shareholders, particularly if they are domiciled in Germany, may apply for a refund of capital gains tax and, if applicable, corporation tax, using the individual application procedure.
The individual application procedure is also possible for
-natural persons who have failed to submit their non-assessment certification to their bank,
-over-payers, e.g. insurance and holding companies, the business of which consists exclusively of holding and disposing of securities, and which would suffer liquidation losses if refunds were to take place only within the scope of an assessment procedure.

Individual application procedure for parties with limited tax liability

Upon special application, appropriate relief from German capital gains tax may be granted for dividends and specific investment income which may not be taxed in Germany, or may only be taxed at a low rate, as a result of a double taxation agreement.
Use the "Foreign applicants" menu option on the left-hand navigation bar for further information and to download forms.

Special features

The applications for a refund of capital gains tax to foreign taxpayers may also be made on electronic data media using the data media procedure.
Special regulations apply to recipients of French dividends who have unlimited tax liability.
Natural persons with unlimited tax liability have the option of granting their financial institutions an exemption order for investment income. No capital gains tax (reduction of interest) is withheld by the financial institution for such income. The financial institutions report the exemption amounts claimed to the Federal Central Tax Office annually for audit purposes.

Use the "Data media procedure for foreigners" menu option for further information and forms.

back to the top