Tax
A Freistellungsauftrag (tax exemption order) instructs your bank to leave capital gains tax-free up to the saver's allowance (1,000 EUR for singles).
The tax exemption order (Freistellungsauftrag, FSA) instructs the bank to keep capital gains tax-free up to the saver's allowance (Sparerpauschbetrag, 1,000 EUR for singles, 2,000 EUR for couples).
Without an FSA, the withholding tax is applied immediately to all earnings. Overpaid tax can then only be recovered through the tax return: an avoidable hassle.
With multiple brokerage accounts, the FSA can be split. The total of all exemption orders must not exceed the saver's allowance.
See taxes, dividends and allocation for your whole portfolio in one place.