Basiszins, calculation and practical tips on the Vorabpauschale for accumulating ETFs.
Most taxes arise when money moves: on a sale, on a distribution. The Vorabpauschale (Germany's advance lump-sum tax on accumulating funds) is the exception. It falls due while the shares still rest and the fund has paid out nothing.
For many investors this is the first tax that seems to come from nowhere. Yet it follows a clear logic, and whoever understands it passes through the turn of the year more calmly.
A tax on a gain that is not yet in the account asks for a plan, not a surprise in January.
The Vorabpauschale is an annual minimum taxation for accumulating ETFs and funds. It makes sure that investors pay tax even when the fund makes no distributions and the shares are not sold.
The Vorabpauschale concerns only investment funds and ETFs. Single stocks are not affected: tax falls due only on a sale or on dividend distributions.
The Basiszins (base interest rate set for the calculation) is fixed each year by the Deutsche Bundesbank. It tracks the yield on long-dated German government bonds.
| Year | Basiszins | Base-return factor (70 %) |
|---|---|---|
| 2024 | 2.29 % | 1.60 % |
| 2025 | 2.53 % |
The Vorabpauschale for the 2026 tax year is debited from your settlement account in early January 2027.
The Basiszins for 2026 is 3.20 %. It is set each year by the Deutsche Bundesbank and is based on long-dated German government bonds.
Yes, but only when the distributions are smaller than the base return. The Vorabpauschale is reduced by distributions already received.
| 1.77 % |
| 2026 | 3.20 % | 2.24 % |
The higher the Basiszins, the higher the Vorabpauschale turns out.
Base return
Fund value on 01 Jan × Basiszins × 0.7
Vorabpauschale (gross)
Minimum of (base return − distributions) and (actual gain in value)
For equity-fund ETFs, a 30 % Teilfreistellung (partial exemption) is then deducted. On the remaining taxable amount, Abgeltungsteuer (German flat tax on investment income) and Solidaritätszuschlag (solidarity surcharge) fall due.
Tax Year
Vorabpauschale (gross)
EUR 224,00Estimated Tax
EUR 0,00The Vorabpauschale is set against the Sparerpauschbetrag (annual saver's tax-free allowance, EUR 1,000 for individuals). Whoever saves into ETFs should take the Vorabpauschale into account when allocating the Freistellungsauftrag (exemption order filed with the bank).
Build a buffer for the Vorabpauschale into your Freistellungsauftrag, especially if you hold several accumulating ETFs.
Kernaussagen
The Vorabpauschale in view
Investboard estimates the Vorabpauschale to expect on your accumulating ETFs and shows how much of your allowance it claims, before the turn of the year arrives.
View the Vorabpauschale →