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  1. Knowledge
  2. ›Glossary
  3. ›Saver's tax-free allowance

Tax

Saver's tax-free allowance

The Sparerpauschbetrag (saver's tax-free allowance) exempts investment income up to 1,000 EUR per person, or 2,000 EUR for jointly assessed couples, from tax; only income above that is subject to the flat capital-gains tax.

The Sparerpauschbetrag is the annual tax-free allowance on private investment income such as interest, dividends and realised capital gains. Since 2023 it has stood at 1,000 EUR per person, or 2,000 EUR for jointly assessed spouses and civil partners; previously it was 801 EUR.

To have the allowance applied automatically, you give your bank or broker a Freistellungsauftrag (exemption order). Income stays tax-free up to the exempted amount; only the part above it is subject to the flat capital-gains tax (Abgeltungsteuer), which the institution withholds at source.

The allowance can be split across several institutions but used only once in total. Anyone who files no exemption order initially pays too much tax and has to reclaim it through the tax return (Anlage KAP). The figures above apply as at 2025.

Related terms

Solidarity surchargeChurch taxFavourable-rate assessment

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