Basiszins 2026 for the Vorabpauschale: 2.29 % — What This Means for Your ETFs
The German Bundesbank set the basiszins (base interest rate) for the Vorabpauschale 2026 at 2.29 % — a reduction of 24 basis points compared to 2025 (2.53 %). This guide explains what the basiszins is, how it’s determined, what the 2026 reduction means for your concrete tax burden, and what to expect for 2027. With a comparison table of all rates since 2018 and real-world examples per portfolio size.
The basiszins reflects the average yield of the longest-dated public bonds — typically 30-year German government bonds — on the first business day of the tax year. Officially published in the Bundesanzeiger (Federal Gazette) and on the Bundesbank website. Value for 2026 = 2.29 % (announcement of January 14, 2026).
What exactly is the basiszins?
The basiszins is the fictional risk-free minimum return that German tax law imputes for the Vorabpauschale. The idea: had an investor placed their ETF money in German government bonds instead, they would have earned this return. The Vorabpauschale is calculated based on this fictional return.
The reasoning: the state wants to ensure that accumulating ETFs (funds that don’t distribute dividends) aren’t tax-„parked”. Even if the ETF doesn’t actually distribute, a fictional minimum return is taxed — based on the basiszins.
Basiszins history 2018 to 2026
| Tax year | Basiszins | Effective (× 0.7) | Tax rate equity ETF | VP per €10,000 |
|---|---|---|---|---|
| 2018 | 0.87 % | 0.609 % | 0.113 % | €11.28 |
| 2019 | 0.52 % | 0.364 % | 0.067 % | €6.73 |
| 2020 | 0.07 % | 0.049 % | 0.009 % | €0.91 |
| 2021 | −0.45 % | 0 % | 0 % | €0.00 |
| 2022 | −0.05 % | 0 % | 0 % | €0.00 |
| 2023 | 2.55 % | 1.785 % | 0.330 % | €33.00 |
| 2024 | 2.29 % | 1.603 % | 0.296 % | €29.63 |
| 2025 | 2.53 % | 1.771 % | 0.328 % | €32.75 |
| 2026 | 2.29 % | 1.603 % | 0.296 % | €29.63 |
VP per €10,000 equity ETF, calculated as €10,000 × basiszins × 0.7 × 0.7 (equity partial exemption) × 0.26375 (capital gains tax + solidarity surcharge), excluding church tax and Freistellungsauftrag.
What does 2.29 % mean concretely for your ETFs?
The reduction to 2.29 % (from 2.53 % in the prior year) is a small relief. Per €100,000 in equity ETF holdings, you save around €32 in Vorabpauschale tax compared to 2025. Here’s the burden per typical portfolio size in tax year 2026:
With a fully used Freistellungsauftrag (€1,000), the Vorabpauschale stays completely tax-free up to a portfolio of around €62,500. For married couples with a joint allowance, the threshold doubles to €125,000.
Why does the basiszins fluctuate so strongly?
The basiszins ties directly to ECB monetary policy. Periods of low key rates (2017–2022) pushed yields on long-dated Bunds temporarily into negative territory — the basiszins was even zero or negative in 2021 and 2022, suspending the Vorabpauschale entirely.
With the rate-hike cycle starting in 2023, the basiszins jumped sharply. The 2026 reduction reflects the ECB’s 2025 cuts — long-dated yields follow short-term rates with a delay. Outlook for 2027: with moderate further ECB cuts, a basiszins of 2.1–2.4 % is likely.
How is the basiszins updated annually?
- Cutoff: First trading day of January (for 2026 = Thursday, January 2, 2026).
- Measurement: Bundesbank determines the average yield of long-dated public bonds on the cutoff.
- Announcement: Publication in the Bundesanzeiger and on bundesbank.de — typically within 14 days after the cutoff.
- Application: The determined value applies to the entire tax year and is debited at the start of the following year (early 2027 for tax year 2026).
This page is updated annually in January as soon as the Bundesbank publishes the new basiszins.
Related topics
- Vorabpauschale 2026 — Complete Guide — mechanics, formula, examples.
- Legally Avoid the Vorabpauschale — 5 strategies to minimize.
- Vorabpauschale vs. realized gain — offsetting at sale.
Frequently Asked Questions
When will the basiszins for 2027 be announced?
The Bundesbank and BMF typically publish the basiszins for 2027 between January 5 and 20, 2027. We update this page promptly after the announcement.
Does a higher basiszins always mean higher taxes?
Generally yes — but only if the ETF has gained sufficient value during the year. If the ETF rises by less than the base return (value × basiszins × 0.7), the Vorabpauschale is automatically capped at the actual price increase. In loss years, the VP is zero.
Does the basiszins also apply to bond ETFs?
Yes, the basiszins is universal for all ETFs falling under the German InvStG. But: bond ETFs don’t get the 30 % equity partial exemption, so the effective burden is higher (around 0.42 % of portfolio value vs. 0.30 % for equity ETFs).
Who determines the basiszins?
The German Bundesbank, based on a statutorily defined procedure (§ 18 Abs. 4 InvStG). The BMF then formally publishes the value in the Bundesanzeiger. It’s a purely mechanical calculation — not a political decision.
What happens if the basiszins is negative?
If the basiszins is zero or negative (as in 2021 and 2022), the Vorabpauschale automatically becomes zero. The InvStG specifies that a negative Vorabpauschale cannot arise.
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