Buying U.S. stocks and shares in Germany

Hello,

Does anyone have any experience with buying US stocks in Germany? Which brokers did you go for?

Also, what are the taxes on income generated from stocks and dividends? Would they still be taxed at the high tax rate?

If you are fully taxable in Germany (unbeschränkte Einkommensteuerpflicht), which is usually the case if you live and work here, then your investment income is fully taxable under German income-tax rules, doesn't matter if you buy German equities or American equities.

Btw, many major US stocks are listed on various German stock exchanges, so you can possibly buy them right here (depending on what exactly you want to buy).

Thanks for that.

Yes, I was aware that I have to pay taxes here, I was just not sure if the income from stocks and dividends are taxed at the normal or a different rate. Some countries tax incomes from these sources at a lower rate. I think that might not be the case in Germany.

internaxx or for cfds cmc markets

Until the end of this year, dividends and interest are taxed at your full marginal income rate, which is higher in Germany than in the US. Starting next year, it's a flat 25%, which could end up being more advantageous than the US rates.

A few people have posted on this before.

I have been customer of these:

www.etrade.de
www.comdirect.de


Currently:
When selling stocks you have to pay half your income tax rate on the profits if you held the stocks less than one year and zero taxes if you held them longer than one year. For Dividends you have to pay full income tax rate.

From 2009 on:
25% flat tax on everything.

if you want to trade with stocks (i.e. buy and sell fast) then whatever profits you make are taxable income (but you can off-write your losses against these profits, too). If you buy stocks, bonds or investment funds still in 2008 and keep them for longer then 1 year, the profits are tax-free still (but not dividends and interest paid out on those). After Jan. 1st 2009 this will totally change and regardsless of how long you keep your stocks, bonds and funds and if your profits are from interest or increased share value, the profits become taxable when you sell with 25% income tax plus church tax (if applicable to you) and solidarity tax, so full tax load can be around 28%.

Cheerio

Thanks everyone.

This is fantastic (for me) that ETrade offers this in English. Was everything available in English or only certain parts? Were the available investment options of reasonable diversity (i.e. passive vs active, cash/bonds/stocks) and reasonably priced (i.e. no load, lower expense ratios)?

Also www.cortalconsors.de.