1Mon
Why do so many Germans invest in dividend portfolios despite the tax implications? Arent dividends subject to a 25% German withholding tax? (plus an additional 15% source tax from the country of origin, depending on tax treaties) Meanwhile, capital gains are also taxed at 25% in Germany but without the source tax complication. Doesn't this make accumulating ETFs a more attractive option, as they avoid dividend taxation and allow for tax-deferred growth?
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The source tax will be charged with the capital gain tax. As a german who pays 48% income tax the 25% tax on capital gains is better than working 😅 No seriously i just like the cashflow. Maybe an accumulating ETF can perform better, but i will work with the market 😉
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•1Mon
@Fabelicious ok thanks for the explanation! Good luck with your portfolio
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@NasdaqNinja but you are correct. The taxes in Germany are way to high 😉 The plan could be to move abroad when i can live from my capital gains.
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