Germany ETF Savings Plan Calculator
Estimate the wealth accumulation of your ETF savings plans, calculate compound returns, and calculate German capital gains tax (Abgeltungsteuer).
* Standard allowance is €1,000 for singles and €2,000 for married couples.
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| Year | Total Contributions | Accumulated Gains | Gross Balance |
|---|---|---|---|
| Year 1 | 13,000.00 € | +839.12 € | 13,839.12 € |
| Year 2 | 16,000.00 € | +1,955.77 € | 17,955.77 € |
| Year 3 | 19,000.00 € | +3,370.01 € | 22,370.01 € |
| Year 4 | 22,000.00 € | +5,103.36 € | 27,103.36 € |
| Year 5 | 25,000.00 € | +7,178.88 € | 32,178.88 € |
| Year 6 | 28,000.00 € | +9,621.32 € | 37,621.32 € |
| Year 7 | 31,000.00 € | +12,457.18 € | 43,457.18 € |
| Year 8 | 34,000.00 € | +15,714.93 € | 49,714.93 € |
| Year 9 | 37,000.00 € | +19,425.04 € | 56,425.04 € |
| Year 10 | 40,000.00 € | +23,620.23 € | 63,620.23 € |
| Year 11 | 43,000.00 € | +28,335.56 € | 71,335.56 € |
| Year 12 | 46,000.00 € | +33,608.63 € | 79,608.63 € |
| Year 13 | 49,000.00 € | +39,479.77 € | 88,479.77 € |
| Year 14 | 52,000.00 € | +45,992.20 € | 97,992.20 € |
| Year 15 | 55,000.00 € | +53,192.28 € | 108,192.28 € |
Comprehensive Guide to ETF Savings Plans and Taxation in Germany
What is an ETF savings plan and how does it work?
An **ETF savings plan** (Exchange Traded Fund) is one of the most effective methods for long-term personal wealth building. Every month, a fixed savings amount is automatically debited from your bank account and invested in a broad stock market index (like the MSCI World, FTSE All-World, or S&P 500). By investing consistently, you benefit from the **cost-average effect** (average cost effect): when prices are low, you automatically acquire more shares, and when prices are high, you acquire fewer.
Capital Gains Taxation on ETFs in Germany (Investmentsteuerreform)
Capital gains earned from ETFs are subject to a flat-rate tax (Abgeltungsteuer) of **25 %** plus **5.5 % solidarity surcharge** (totaling **26.375 %**), along with church tax if applicable. Important tax mitigation rules apply:
- Partial Tax Exemption (Teilfreistellung): Since underlying stock earnings have already been taxed at the corporate level, a portion of your ETF returns is tax-exempt. For equity ETFs (holding >51% equities), **30 %** of all capital gains and dividends are completely tax-free. For mixed ETFs (holding >25% equities), the exemption is **15 %**.
- Tax-Free Allowance (Sparer-Pauschbetrag): Every single tax filer has an annual allowance of **€1,000** (€2,000 for married couples filing jointly) of investment income completely exempt from taxes.
Frequently Asked Questions (FAQ) – ETF Savings & German Taxes
What happens to dividend payouts in an ETF savings plan?
For accumulating (thesaurierend) ETFs, dividends are automatically reinvested inside the fund, compounding your returns. For distributing (ausschüttend) ETFs, payouts are credited to your brokerage cash account and must be reinvested manually unless automated.
What is the German advance lump-sum tax (Vorabpauschale) on ETFs?
The Vorabpauschale is a mechanism under German tax law to collect a small prepayment of capital gains tax on accumulating ETFs annually. This counters the tax deferral advantage over distributing funds. Any prepaid Vorabpauschale is fully credited and deducted from your taxable gains when you sell the ETF.
When do I have to pay capital gains tax on my ETF?
Tax is only triggered when you realize gains – meaning when you sell ETF shares or receive dividend payouts. Gains up to €1,000 per year (for singles) are completely exempt if a tax exemption order (Freistellungsauftrag) is set up with your broker.
What expected annual returns can I expect from an ETF savings plan?
Historically, a globally diversified equity index fund (such as the MSCI World or FTSE All-World) yields a long-term average annual return of about **7% to 8%** before inflation over investment horizons of 15+ years.