Gains from selling stocks, dividends and interest are capital income. In Germany the of 25% applies, plus a 5.5% solidarity surcharge on this tax and church tax if applicable – without church tax 26.375% together. Up to the of €1,000 a year, €2,000 for married couples, capital income stays tax-free. With stocks the holding period does not matter.
Do the math
Gains from selling stocks €3,500, losses from selling stocks €1,000, dividends €500. After offsetting, €3,000 remains; minus the €1,000 allowance, €2,000 is taxable. Withholding tax €500, solidarity surcharge €27.50, together €527.50.
Losses from stocks
Losses from selling stocks are only offset against gains from selling stocks, not against dividends or interest. If a loss remains, it is carried forward to the next year (). A German bank usually does this offsetting itself and pays the tax directly.
Church tax and exemption order
Church tax is 8% (Bavaria, Baden-Württemberg) or 9% of the withholding tax. Because it slightly reduces the withholding tax, the total is about 27.8% or 28.0%. You use the allowance through an exemption order at your bank. With foreign brokers you usually declare the income yourself in your tax return.
Abroad, ETFs and several banks
On US dividends, the US usually withholds 15% tax (with form W-8BEN); it is credited against the German withholding tax. Partial exemptions apply to funds and ETFs, and their losses go into the general loss pot. You can only offset losses at one bank against gains at another through a loss certificate (apply by December 15) and your tax return.