Taxes on Capital returns

ImadRgb • 25 August 2023

Hello everyone,

As an employee, taxes on my income are deducted at the source. However, I also have additional revenue from my capital, such as dividends, which do not exceed 500 euros per year. Do I need to make a tax declaration for this? At what amount of additional income should I start declaring taxes?

Thank you.



Answers (2)


Hello ImadRgb, thank you for your question on our platform.
As far as I have read you do not need to pay taxes on your revenue if it does not exceed 1000euros per year (2023). For the year 2022 the amount was 802euros. If you make more than 1000euros then you will have to pay taxes on your dividends. This amount can change if you are married. 

Sometimes if you have stocks with you bank they will automatically deduct the tax, even if you are below the 1000euros, then you will have to do a so called „Freistellungsauftrag“ at your bank. So they do not deduct the taxes from you. I have found a good article about this, unfortunately it is in German. Maybe you can use a translation tool for this article.
You can find more about the German tax system on our Handbook Germany page:

I am happy to help if you need further information.
Best wishes

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