Holding period – FRANKFURT STOCK EXCHANGE

Holding period

Period of time during which capital gains from securities transactions are taxable (or subjected to the highest tax rate)

The holding period in Germany is twelve months – i.e., capital gains resulting from the purchase or sale of securities held for less than a year are subject to income tax. In Germany, all capital gains realized after the holding period has elapsed are tax-free. Investors can offset capital gains and capital losses recorded during a given year on their tax return. If an investor’s net gains in a given calendar year amount to less than €512, they will be tax-exempt irrespective of how long the securities were held. If this tax exemption limit is exceeded, the entire amount of capital gains is subject to tax.