---
title: "Loss offsetting: how share and ETF losses save German tax"
description: "German loss offsetting explained: why share losses only count against share gains, why ETF losses fall into the general pot, and why the loss certificate by 15 December matters."
canonical: "https://investboard.de/en/wissen/verlustverrechnung-aktien-etf"
language: "en"
published: "2026-07-09"
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"
---

# Loss offsetting: how share and ETF losses save German tax

Two pots, a December deadline, and a widespread misconception about equity ETFs.

## In short

Germany offsets investment losses in two pots: losses from individual shares count only against share gains, while all other losses, including those from equity ETFs, fall into the general pot and offset against all investment income. Unused losses carry forward indefinitely. Across banks, only the tax return with a loss certificate helps, to be requested by 15 December.

- Two pots: the share pot (individual shares against share gains only) and the general pot (everything else, broadly offsettable)
- ETF losses land in the general pot, not the share pot, and offset against all investment income
- Across banks, only the tax return offsets: request the loss certificate by 15 December
- Unused losses carry forward indefinitely

Losses feel like failure; for tax they are an asset: they lower the tax on future gains. Germany just offsets them by idiosyncratic rules, with two separate loss pots and a deadline in December.

Whoever knows the pot logic understands their annual tax statement, avoids the most common misconception about share losses, and never wastes an offset across brokerage accounts.

> A realised loss is not an ending for tax purposes; it is a credit. You only have to know which pot it sits in.

## The two loss pots

Your bank automatically keeps two offsetting pots for you (Section 20(6) EStG):

- **Share pot (Aktien-Topf):** losses from selling **individual shares**. They may only be offset against gains from selling shares, not against dividends, interest or fund gains.
- **General pot (sonstiger Topf):** everything else, including losses from **ETFs and funds**, from bonds and certificates. This pot offsets against all investment income: interest, dividends, fund gains and share gains too.

The most common misconception hides in the detail: **losses from equity ETFs do not go into the share pot.** The share pot is reserved for individual shares; a sold ETF lands in the general pot even if it holds nothing but shares. For investors that is often the better outcome, because the general pot offsets more broadly.

| Loss from ... | Pot | Offsets against |
| --- | --- | --- |
| Individual share (sale) | Share pot | Only gains from share sales |
| Equity ETF (sale) | General pot | All investment income |
| Bond, certificate | General pot | All investment income |
| Dividend, interest | No loss-pot entry arises | n/a |

## How the offsetting works

Within one bank everything is automatic: realise a loss and the bank books it into the right pot; later gains of the same year are set against the pots before any flat tax is withheld. Tax already paid during the year is usually refunded by the bank directly.

If a loss remains at the year's end, the bank carries it forward automatically, indefinitely. A carry-back into earlier years does not exist for investment income.

For funds, the **partial exemption works in both directions**: like gains, losses of an equity fund are counted at only 70% (30% partial exemption, Section 20 InvStG).

## Across several banks: the December deadline

Pots do not travel between banks on their own. Losses at broker A offset gains at broker B only through the tax return, and for that you need the **loss certificate (Verlustbescheinigung)**: to be requested from the bank **by 15 December** of the year. With the certificate the pot at the bank is emptied and the offsetting moves to the tax office (Anlage KAP).

Missing the deadline loses nothing for good: the pot simply carries forward. But the cross-bank offset shifts by a full year, and until then the overpaid tax sits with the tax office.

## What losses are worth for tax

An example in orders of magnitude: EUR 2,000 of realised loss in the general pot saves around EUR 527 of tax when offset later (26.375% without church tax). The pot is real money as soon as gains arrive again.

That also marks the limit of any "tax optimisation": realising losses only makes sense when the sale is defensible without the tax angle. Whoever sells a position purely for the pot and buys it back dearer pays spread and order fees, and risks the tax office disregarding pure structuring. Tax follows strategy, not the other way round.

The share pot is a special case for individual shares. For ETF investors the general pot is what counts, and it offsets generously.

## Practical points

- Read the annual tax statement: both pot balances at year-end are printed there
- Plan share losses only against share gains
- View ETF losses calmly: they offset against all investment income
- With several accounts: request the loss certificate by 15 December
- Loss carry-forwards run indefinitely; nothing lapses at the turn of the year

## Frequently asked questions

### What is the difference between the share pot and the general pot?

The share pot collects only losses from selling individual shares and offsets them exclusively against gains from share sales (Section 20(6) EStG). The general pot collects everything else, including ETF and fund losses, and offsets against all investment income: interest, dividends, fund and share gains.

### Which loss pot do ETF losses fall into?

Into the general pot, not the share pot. The share pot is reserved for individual shares; a sold equity ETF counts as a fund unit for tax. That is usually the better outcome, because the general pot offsets against all investment income. The partial exemption works in both directions: ETF losses, like gains, are counted at 70%.

### Do unused losses lapse at the end of the year?

No. A loss remaining at year-end is carried forward by the bank automatically and indefinitely. Only for offsetting across banks in the tax return do you need the loss certificate, to be requested by 15 December; otherwise that cross-bank offset shifts by a year.

## Sources

- [Einkommensteuergesetz (EStG) § 20 Einkünfte aus Kapitalvermögen](https://www.gesetze-im-internet.de/estg/__20.html) · Bundesministerium der Justiz
- [EStG § 43a Bemessung der Kapitalertragsteuer (Verlustbescheinigung)](https://www.gesetze-im-internet.de/estg/__43a.html) · Bundesministerium der Justiz
- [InvStG § 20 Teilfreistellung](https://www.gesetze-im-internet.de/invstg_2018/__20.html) · Bundesministerium der Justiz