What taxes do I have to pay as a capital investor?
June 14, 2022 | 40,00 EUR | answered by Zofia Schulz
Dear tax advisor,
I am Lina Koch and have recently started investing in various capital assets. However, I am unsure about the taxes I as a capital investor have to pay and how much they will be.
Currently, I am in a situation where I have made some profits from my capital investments but have also incurred losses. I am not sure if and how I have to report these profits and losses in my tax return and what taxes will be levied on them.
My concerns mainly lie in the fact that I may not be reporting taxes correctly and may therefore have problems with the tax office. I want to ensure that I fulfill all my tax obligations as a capital investor and do not pay unnecessary taxes.
Therefore, my question to you is: What taxes do I have to pay as a capital investor and how can I ensure that I report them correctly? Are there ways to save taxes or use certain tax-free allowances?
I would greatly appreciate it if you could assist me in this matter and provide me with specific information about my tax obligations as a capital investor.
Thank you in advance for your help.
Best regards,
Lina Koch
Dear Mrs. Koch,
Thank you for your question regarding the tax obligations as a capital investor. As a tax advisor, I can provide you with detailed information on this topic.
As a capital investor, you are subject to capital gains tax. Currently, this tax rate is 25% and is deducted directly by the bank where you hold your capital investments. Capital gains include interest, dividends, capital gains from securities sales, as well as profits from investment funds. Profits from the sale of real estate are also considered capital gains and must be taxed.
If you earn profits from your capital investments, you must declare them in your tax return. Losses must also be declared, as they can be offset against profits and thus reduce the tax burden. It is important to fully and accurately disclose all relevant income and expenses to avoid problems with the tax office.
To save taxes, you can use certain tax-free allowances. The saver's allowance is currently €801 for singles and €1,602 for married couples. This amount is tax-free and will be automatically considered by your bank. If you wish to claim higher allowances, you must provide appropriate evidence to your bank.
Additionally, you can offset your capital gains with tax-deductible expenses, such as custody fees, advisory fees, or travel expenses for attending stock market events. Losses from previous years can also be offset against profits under certain conditions.
It is advisable to inform yourself in a timely manner about your tax obligations as a capital investor and to seek professional assistance if needed to ensure that you take advantage of all opportunities for tax savings. I am happy to answer any further questions and support you in fulfilling your tax obligations as a capital investor.
Best regards,
Zofia Schulz, Tax Advisor
