RSU tax hub · Germany
German residents with US RSUs
Lohnsteuer at vest (up to 47%+ with Soli + church tax). Abgeltungsteuer flat 26.4% on capital gains and dividends. US-Germany DTC reduces dividend WHT to 15%. Foreign capital income reported on Anlage KAP (German broker source-tax discharge doesn't apply).
Executive summary
Germany's RSU tax regime is split across two distinct regimes: employment income (Lohnsteuer) at vest under § 19 EStG, and capital income (Abgeltungsteuer) on subsequent dividends and capital gains. At vest, the FMV of vested shares is treated as Sachbezug (in-kind employment income), taxed at marginal income tax rates up to 45% plus 5.5% Solidaritätszuschlag (Soli) on the tax — effective 47.475% top rate without church tax, ~50% with.
Capital income (post-vest) faces Abgeltungsteuer, the flat tax for private investors: 25% on capital gains and dividends, plus 5.5% Soli on the tax = 26.375% combined. Plus church tax (Kirchensteuer) if applicable: 8% (Bayern, BW) or 9% (everywhere else) on the tax base. Materially lower than marginal income tax for high earners, making capital appreciation tax-efficient.
The Sparer-Pauschbetrag allowance shelters the first €1,000 (single) or €2,000 (married jointly) of annual capital income from Abgeltungsteuer. Claimed via Freistellungsauftrag with German brokers, OR on Anlage KAP for foreign-broker holdings. For high-comp RSU holders, this allowance is quickly exhausted by dividend income alone.
For US-broker-held positions (Schwab, E*TRADE, Fidelity), Anlage KAP filing is MANDATORY because no German broker is between you and the income to apply automatic Abgeltungsteuer withholding. Anlage KAP reports gross dividend, capital gains, foreign WHT credit, Sparer-Pauschbetrag claim. The accumulating ETF Vorabpauschale adds another layer if you hold UCITS ETFs in foreign brokers — annual presumed-income computation taxed even without realization.
Start here — the complete guide
German residents with US RSUs: complete tax + filing guide for 2026 →
2,200-word framework covering § 19 EStG Sachbezug, Abgeltungsteuer mechanics, Anlage KAP foreign capital income, Sparer-Pauschbetrag.
Quick reference
Key tax rates, thresholds, and filing details for Germany residents.
- Vest tax (Lohnsteuer)
- Marginal up to 45% + 5.5% Soli + church tax
- Top effective rate (no church)
- 47.475%
- Abgeltungsteuer (CGT + dividends)
- 26.375% (25% + 5.5% Soli)
- Sparer-Pauschbetrag (annual allowance)
- €1,000 single / €2,000 married
- US dividend WHT
- 15% with W-8BEN (Article 10 US-DE Treaty)
- Tax year
- Calendar year
- Filing
- Einkommensteuererklärung + Anlage KAP
- Return due
- 31 July (self-filing) / 31 May following year (with Steuerberater)
What happens at vest
Step-by-step walkthrough of the Germany mechanics when your US RSUs vest.
- 1
Vest value = FMV × shares at vest date
USD value, converted to EUR at the European Central Bank reference rate on vest date.
- 2
EUR value treated as Sachbezug (§ 19 EStG)
Included in employment income for that month. Added to salary + bonus + other taxable benefits.
- 3
Lohnsteuer (income tax) withheld at marginal rate
Up to 45% federal + 5.5% Soli on the tax + church tax (if applicable). For a Spitzensteuersatz earner, total ~47-50%.
- 4
Sozialversicherung (social insurance) treatment
Depends on whether total earnings exceed the Beitragsbemessungsgrenze (contribution ceiling, ~€90K for pension/unemployment, ~€62K for health/care). RSU vest can push high earners above ceilings reducing marginal social insurance impact.
- 5
Net shares delivered to US broker account
Cost basis for future Abgeltungsteuer = FMV at vest in EUR using ECB reference rate.
- 6
US dividends face 15% US WHT with W-8BEN
Treaty rate Article 10 US-Germany. German Abgeltungsteuer (26.375%) also applies, with the 15% US WHT creditable up to the German tax due.
- 7
Sales trigger Abgeltungsteuer on capital gain
Realized gain = (sale × EUR/USD on sale) − (basis × EUR/USD on acquisition). 26.375% flat rate (+ church if applicable). Stock losses can offset only stock gains, not dividends.
Filing calendar & deadlines
The key dates that matter for Germany RSU holders.
| Event | Date | Form / consequence |
|---|---|---|
| Tax year ends | 31 December | |
| Self-filed Einkommensteuererklärung due | 31 July (following year) | ESt 1 A + Anlage KAP + Anlage NLate filing penalty 0.25% per month (min €25) |
| Steuerberater-filed return due | Last day of February, second following year (e.g., 28 Feb 2027 for 2025 tax year) | |
| Quarterly Vorauszahlung (advance payments) | 10 March / June / September / December | Required if previous year tax >€400 |
| Sparer-Pauschbetrag year-end | 31 December | Annual allowance €1,000/€2,000 — cannot carry forward |
Best brokers & platforms
The platforms worth knowing for Germany residents holding US stocks.
Trade Republic
Neobroker, very low costs. Strong on US stocks + ETFs. Good for casual investors. Automatic Vorabpauschale handling.
Scalable Capital
Bank-grade neobroker (Munich-based). Strong on portfolio building, US stock access. Automatic German tax handling.
Comdirect / DKB / ING
Established German banks with brokerage. Higher costs than neobrokers but full customer service and complete German tax reporting.
Interactive Brokers Germany
Lowest costs for active investors. Strong cross-border tax tools. Less integrated with German tax handling (you handle Anlage KAP).
Flatex
Mid-cost German broker. Good German tax reporting. Strong on ETF savings plans.
Common mistakes (and what they cost)
The errors Germany RSU holders make most often.
Forgetting Anlage KAP for foreign-broker income
German Abgeltungsteuer source-tax discharge only applies via German brokers. US-broker dividends + gains MUST be self-declared on Anlage KAP. Not filing triggers tax authority audit + back-tax + interest.
Cost: Owed tax + interest 0.5%/month + penalty up to 100%
Ticking Günstigerprüfung at high marginal rate
Günstigerprüfung makes capital income taxed at marginal rate vs flat 26.375%. Only beneficial if your marginal rate is BELOW 25%. For high earners (Spitzensteuersatz 42-45%), ticking it INCREASES tax.
Cost: 16-19 percentage points on capital income
Using wrong EUR/USD rate
German tax law requires ECB reference rate on transaction date. Broker rates differ. Using wrong rate inflates or deflates reported gain. Document each conversion.
Cost: Variable; can be material
Missing Sparer-Pauschbetrag split across brokers
€1,000/€2,000 annual allowance must be split across multiple brokers via Freistellungsauftrag. Allocating it all to one broker leaves other broker income fully taxed. For foreign brokers, claim on Anlage KAP.
Cost: 26.375% × €1,000-€2,000 = €264-€528 per year
Ignoring Vorabpauschale on accumulating ETFs at foreign brokers
Vorabpauschale (advance lump-sum tax) on accumulating ETFs is auto-handled by German brokers but NOT by foreign brokers. You must self-compute and declare on Anlage KAP. Missing it accumulates tax debt.
Cost: ~0.47% of ETF NAV per year × years undeclared
Deep dives
2 live articles · 4 coming soon
- ETF-Steuerreform 2018 and Vorabpauschale (coming soon)
- bAV (betriebliche Altersvorsorge) for US stock exposure (coming soon)
- Church tax (Kirchensteuer) implications (coming soon)
- Cross-border vesting: US→Germany attribution (coming soon)
Frequently asked questions
What is Abgeltungsteuer and how does it apply?
Abgeltungsteuer is the German flat tax on private capital income (capital gains, dividends, interest). Rate: 25% + 5.5% Solidaritätszuschlag = 26.375%, plus church tax if applicable. Materially lower than marginal income tax (up to 47%+), making capital gains tax-efficient for high earners.
Do I need to file Anlage KAP for US dividends?
Yes. The German Abgeltungsteuer source-tax discharge only applies to income paid through German brokers. For US-broker-held income (dividends, gains), you must file Anlage KAP to declare and pay Abgeltungsteuer + claim US WHT as foreign tax credit.
What is Sparer-Pauschbetrag and how do I claim it?
Sparer-Pauschbetrag is the annual capital income allowance: €1,000 single / €2,000 married. First €1,000/€2,000 of dividends + capital gains + interest is tax-free. Claim via Freistellungsauftrag with German brokers, or on Anlage KAP line 15 for foreign-broker holdings.
How does Vorabpauschale work?
Vorabpauschale (advance lump-sum tax) on accumulating ETFs: annual presumed income = ETF value at start of year × Basiszins (2.55% for 2024) × 70%. Effectively ~0.47% of NAV per year × Abgeltungsteuer = pre-paid tax. Credited against actual gain when sold. Auto-handled by German brokers; manual at foreign brokers.
What's Günstigerprüfung and should I tick it?
Günstigerprüfung lets the tax office apply your overall marginal rate (vs flat 26.375%) to capital income. Beneficial only if your marginal rate is below 25% (low income, retirees). For high-comp RSU holders at 42-45% marginal, do NOT tick — it makes capital income tax worse.
Can capital losses on US stocks offset dividends?
No. German tax law restricts stock losses (Aktienverluste) to offset only stock gains, NOT dividends or other Kapitalerträge. This is the 'Verlustverrechnungsbeschränkung für Aktien' — a German-specific rule. Stock losses carry forward indefinitely but only against future stock gains.
What's the deadline for German tax filing?
Self-filing: 31 July following the tax year. With Steuerberater (tax advisor): typically 28 Feb of the second following year (e.g., 28 Feb 2027 for 2025 tax year). For complex US RSU situations, engaging a Steuerberater is often worthwhile.
Related country hubs
Compare US RSU treatment across other major markets.
United States
US residents with US RSUs
Ordinary income at vest (W-2). Capital gains short-term (≤1 year) at ordinary rates, long-term at 0%/15%/20% + 3.8% NIIT. ESPP qualifying disposition saves materially in tax. Concentration risk is the biggest strategic issue.
United Kingdom
UK residents with US RSUs
PAYE + NIC at vest (up to 47% combined). CGT on sale at 18%/24% post-30 Oct 2024. US-UK DTC reduces dividend WHT to 15%. SA106 (foreign income) + SA108 (capital gains) on Self Assessment.
Canada
Canadian residents with US RSUs
CRA taxes vest as employment income at combined federal+provincial marginal rate (up to 53.5% in BC). 50% capital gains inclusion. T1135 disclosure required if foreign property cost > CAD 100K. RRSP gives US dividend Treaty exemption.
Browse all country markets and RSU tax hubs.