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About escalera

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  • Location Berlin
  • Nationality Indian
  1. @Straightpoop since you seem knowledgeable about taxation, I was wondering if you could help with this question. Different people have given me different answers including tax advisors.

    Do people have to pay capital gains taxes on unrealized gains on Stocks, funds in germany? 

    For eg. if I invested 5000EUR in an ETF and in a year due to a good market gain it appreciated to 10000EUR but I got no dividends and I didn't sell and take out the money, AM I required to pay 25% tax on the 5000EUR gain?


    I know about the 800 EUR exemption, but again are unrelaized gains also included? 


    I was told that there was a new law that came into effect in 2018 which means that the growth is taxed even if not realized. 


    Can you confirm? As if this is the case then I am planning to get a private pension fund instead of putting my money in ETFs despite the fees. If this is not the case, then I am going to just invest in ETFs on my own

    Thank you!

    1. escalera

      Thank you snowingagain. I did come across this before but I guess my question is if the growth itself is considered capital gain and subject to the tax or not. Most people said No but some said yes. 

    2. escalera

      And will this work the same if I am buying stocks through a brokerage and not funds?

  2. How to contribute to Roth IRA from Germany

  3. How to contribute to Roth IRA from Germany

    @Straightpoop I know this is a very old discussion but maybe you or others here could offer some insight as I couldn't find anything relevant to my situation.   I am an Indian citizen and I used to live and work in the US. I contributed to an employer sponsored retirement plan a 403b while living there. Most (95% of it is after-tax money with the rest in after tax and Roth)    I left the US in 2015 and do not contribute to this account anymore. It is still int he US and grows annually. I have been living and working in Germany since 2016 and only pay taxes in Germany (NOT in the US as I am NOT a US citizen or resident). I filed taxed since 2016 and I was told by a tax advisor that the 403b account is treated in Germany like a brokerage account and that I should declare and pay capital gain taxes each year on the growth of this and declare the losses which I have been doing even though I checked multiple times if this is applicable for a retirement account that I won't touch until I turn 60.   Recently, while discussing retirement plans in Germany, I was told that this is NOT the case and that I don't have to pay capital gains taxes on any money invested in a pension/retirement structure. I cannot find any information on this as most of the info I find when I search involves individuals who are already retired and asking about paying taxes on the monthly payments they receive from their retirement accounts or people who are US citizens which doesn't apply to me.   Can anyone help me on how I should be declaring these? Is the second person right that I don't have to pay annual capital gains taxes since this is a retirement account and I am not getting anything from this? Also, again, just to make it clear, I am an Indian citizen with a US 403b retirement account that I do not contribute to anymore living and paying taxes ONLY in Germany.   Thank you for your help. Regards