---
title: "Optimise your Sparerpauschbetrag: splitting the Freistellungsauftrag correctly"
description: "Make the most of the Sparerpauschbetrag in 2026: split the Freistellungsauftrag across accounts, account for the Vorabpauschale, and the strategy for married couples."
canonical: "https://investboard.de/en/wissen/sparerpauschbetrag-optimieren"
language: "en"
published: "2026-03-27"
modified: "2026-07-09"
last_verified: "2026-07-27"
jurisdiction: "DE"
applicable_tax_years: "2026"
author: "David Bartas"
author_url: "https://investboard.de/ueber-uns"
reviewer: "David Bartas"
reviewed: "2026-07-27"
---

# Optimise your Sparerpauschbetrag: splitting the Freistellungsauftrag correctly

How to make the most of your EUR 1,000 allowance across several custody accounts.

## In short

You make best use of the Sparerpauschbetrag, the EUR 1,000 annual saver's allowance (EUR 2,000 for jointly assessed couples), by splitting Freistellungsaufträge (bank exemption orders) across accounts where income arises. Without one, the bank withholds 26.375% from the first euro. Reserve part for the Vorabpauschale (advance fund tax), which strikes in January; reclaim overpaid tax via the tax return.

- The Sparerpauschbetrag is EUR 1,000 (EUR 2,000 for jointly assessed couples, Section 20(9) EStG)
- Without a Freistellungsauftrag, tax is withheld from the first euro
- The Vorabpauschale claims part of the allowance: plan for it right in January
- An annual review of the split is worth the effort; the Anlage KAP reclaims overpaid tax

One thousand euros of investment income stays tax-free every year, for every investor in Germany. It sounds modest, and yet it is the single easiest tax advantage there is to claim.

You set it up once and then check it briefly each year. Even so, many people leave it unused because the one form was never filled in, or split it poorly because the Vorabpauschale was missing from the calculation.

> The simplest tax advantage is the one you have to apply for only once and can then let work quietly in the background.

## The Sparerpauschbetrag: a EUR 1,000 allowance

Every investor in Germany has a Sparerpauschbetrag (the annual saver's tax-free allowance on investment income) of EUR 1,000 per year; jointly assessed couples and registered partners share EUR 2,000 (Section 20(9) EStG). Investment income up to this limit stays tax-free. The EUR 1,000 figure applies since 2023; before that it was EUR 801.

Everything that counts as investment income for tax is set against it:

- interest on call money, fixed-term deposits and bonds
- dividends and ETF distributions (after the partial exemption)
- realised gains on sales
- the annual Vorabpauschale of accumulating funds

For the bank to apply the allowance at source, it needs a **Freistellungsauftrag** (an exemption order instructing the bank to leave income up to the allowance untaxed). Without one, it withholds 26.375% from the very first euro (more with church tax).

Without a Freistellungsauftrag, your bank withholds tax from the very first euro. You can reclaim that tax through your tax return, but it is needless effort and ties up money until the assessment arrives.

## Splitting the Freistellungsauftrag correctly

Anyone holding several custody accounts or bank accounts has to split the allowance across them. The sum of all Freistellungsaufträge may not exceed EUR 1,000 (or EUR 2,000 for jointly assessed couples); banks report filed orders under your tax identification number to the Federal Central Tax Office, so an excess does surface.

The craft lies in the split. Three strategies at a glance:

| Strategy | Advantage | Drawback |
| --- | --- | --- |
| Everything at one bank | Simple, no splitting needed | Little flexibility |
| Proportional to income | Optimal use of the allowance | Requires an annual adjustment |
| Weighted to the main account | A sound compromise | Smaller accounts are taxed |

As a rule of thumb: place the allowance where the income actually arises. A call-money account of EUR 20,000 at 2.5% interest produces EUR 500 of interest and needs allowance accordingly; an account with distributing ETFs needs it for the distributions, an accumulating portfolio for the Vorabpauschale.

## Planning for the Vorabpauschale

The Vorabpauschale (Germany's advance lump-sum tax on accumulating funds) is also counted against the Sparerpauschbetrag, and it strikes first, at the start of January, before any dividends or sales follow during the year. At a Basiszins of 3.20% (2026), an accumulating equity-ETF portfolio of EUR 50,000 claims around EUR 784 of taxable amount, a large share of the individual allowance.

Estimate the Vorabpauschale you expect for the current year and reserve that amount in the Freistellungsauftrag of the account where the ETFs are held. The Vorabpauschale calculator gives you the order of magnitude in a minute.

## Scenarios compared

An example with two accounts: account A holds accumulating ETFs (expected taxable Vorabpauschale around EUR 400), account B delivers around EUR 600 of dividends per year.

| Scenario | Account A (ETFs) | Account B (dividends) | Tax burden |
| --- | --- | --- | --- |
| No FSA | Full tax | Full tax | Highest |
| FSA only at A | Tax-free up to EUR 1,000 | Full tax | Suboptimal |
| FSA 400/600 | Vorabpauschale covered | Dividends partly free | Optimal |

In the third scenario the allowance sits exactly where the income arises: both deductions disappear, and not a euro of allowance goes unused.

## Reclaiming overpaid tax

Two routes lead back to withheld tax:

- **Anlage KAP in the tax return:** whoever had no exemption order, or one set too low, reclaims the difference through the tax return. On request the Günstigerprüfung (favourable-assessment check) also happens there: if your personal tax rate is below 25%, investment income is taxed at the lower rate (Section 32d(6) EStG).
- **NV-Bescheinigung:** whoever is unlikely to owe any income tax at all (children or low earners, for example) can use a non-assessment certificate to receive investment income gross, beyond the Sparerpauschbetrag.

## Calculating the tax burden

The Sparerpauschbetrag is not a trick and not a loophole. It is your plain right, set up once and effective afresh every year.

## Checklist

- Review the Freistellungsauftrag at every bank
- The sum of all orders may not exceed EUR 1,000 (EUR 2,000 for jointly assessed couples)
- Account for the Vorabpauschale when splitting: it strikes first, right in January
- At year-end, compare income against allowances and adjust the split
- When changing banks, revoke the old Freistellungsauftrag
- Reclaim any overpaid tax through the Anlage KAP

## Frequently asked questions

### How high is the Sparerpauschbetrag in 2026?

EUR 1,000 for individuals, EUR 2,000 for married couples assessed jointly. The amount has applied since 2023 and is unchanged.

### Can I change the Freistellungsauftrag during the year?

Yes, you can adjust your Freistellungsauftrag with your bank at any time. Keep in mind that the sum of all Freistellungsaufträge may not exceed the Sparerpauschbetrag.

### What happens if I do not file a Freistellungsauftrag?

Without a Freistellungsauftrag, your bank withholds Abgeltungsteuer (Germany’s flat 25 percent withholding tax on investment income) from the very first euro of investment income. You can reclaim any overpaid tax through your tax return (Anlage KAP).

## Sources

- [Einkommensteuergesetz (EStG) § 20 Einkünfte aus Kapitalvermögen](https://www.gesetze-im-internet.de/estg/__20.html) · Bundesministerium der Justiz
- [EStG § 32d Gesonderter Steuertarif für Einkünfte aus Kapitalvermögen](https://www.gesetze-im-internet.de/estg/__32d.html) · Bundesministerium der Justiz
- [EStG § 44a Abstandnahme vom Steuerabzug (NV-Bescheinigung, Freistellungsauftrag)](https://www.gesetze-im-internet.de/estg/__44a.html) · Bundesministerium der Justiz
- [Basiszins zur Berechnung der Vorabpauschale zum 2. Januar 2026 (BMF-Schreiben)](https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Investmentsteuer/2026-01-13-basiszins-berechnung-vorabpauschale.html) · Bundesministerium der Finanzen