ETF tax Austria vs Germany — direct comparison 2026
You live in the DACH region and are planning your ETF savings — and wonder whether the tax burden is lower in Austria or Germany. The answer is not clear-cut: for small portfolios Germany wins (thanks to the Sparerpauschbetrag allowance), for larger portfolios or distribution-heavy ETFs Austria is often better. This guide compares both tax systems point by point — tax rate, allowances, Vorabpauschale vs distribution-equivalent income, loss offset, inheritance, foreign portfolios — with worked examples for three portfolio sizes.
| Criterion | Germany | Austria |
|---|---|---|
| Tax rate on capital income | 26.375 % (25 % capital gains + 5.5 % Soli) | 27.5 % KESt |
| Tax-free allowance | €1,000 per person (€2,000 couples) | none |
| Mechanism for accumulated income | Vorabpauschale (notional minimum) | Distribution-equivalent income (real) |
| Equity partial exemption | 30 % (≥ 51 % equity quota) | none |
| Loss offset | Equity bucket + other income bucket | Global loss offset within the assessment year |
| Advance tax mechanism | annual (Vorabpauschale) | annual (AGE at fund year-end) |
| Holding period for shares | none (always taxable) | none (always taxable) |
| Broker final taxation | yes, at DE broker | yes, at AT broker with OeKB reporting fund |
Tax rate: 26.375 % (DE) vs 27.5 % (AT)
At first glance Germany is cheaper — 26.375 % capital gains tax plus solidarity surcharge versus 27.5 % Austrian capital income tax. Difference: 1.125 percentage points. Per €10,000 of capital income that means a tax saving of €112.50 in DE.
But watch out: in DE, persons liable for church tax also pay church tax (8 % in BY/BW, 9 % in the other federal states), pushing the effective tax rate to about 27.99 % (BY/BW) or 28.01 % (rest) — then DE is more expensive than AT for church-tax-liable investors.
Sparerpauschbetrag: Germany’s big advantage for small portfolios
The most important difference: Germany grants every tax resident a Sparerpauschbetrag (savings allowance) of €1,000 per year (€2,000 for married couples). Up to this amount no tax is due on capital income. Austria has no comparable allowance — every cent of capital income is subject to KESt.
Practical impact: with an equity ETF yielding about 1.5–2 % (e.g. MSCI World), the DE allowance covers all capital income up to roughly a €50,000–€66,000 portfolio. AT investors pay from the first euro.
Vorabpauschale (DE) vs distribution-equivalent income (AT)
Both countries have a mechanism to tax accumulating funds (those that do not distribute income) annually — but they work fundamentally differently:
- Notional minimum yield: value × base rate (2026: 2.29 %) × 0.7
- 30 % equity partial exemption for equity ETFs reduces the effective burden by a third
- Cap: actual VP is the smaller of base yield and real appreciation
- In loss years: VP is automatically zero
- Allowance applies: VP disappears up to €1,000
- Real calculation of the fund’s ordinary income (dividends, interest)
- No partial exemption — full 27.5 % KESt rate
- No cap on appreciation — AGE also applies in loss years if the fund received dividends
- For “black funds” punitive tax: 90 % of appreciation or at least 10 % of value
- No allowance — AGE is KESt-liable from the first euro
Practical impact for a €50,000 equity ETF (MSCI World, about 1.5 % dividend yield):
Comparison for three typical portfolio sizes
Assumptions: equity ETF (MSCI World), 1.5 % dividend yield, 7 % p.a. average appreciation, investor without church tax.
| Portfolio | DE annual | AT annual | Difference | Winner |
|---|---|---|---|---|
| €20,000 | €0 (allowance) | €82.50 | −€82.50 | DE |
| €50,000 | €0 (allowance) | €206.25 | −€206.25 | DE |
| €100,000 | €56 (allowance partly used) | €412.50 | −€356 | DE |
| €250,000 | €740 | €1,031 | −€291 | DE |
| €500,000 | €1,481 | €2,063 | −€582 | DE |
Across all portfolio sizes, Germany comes out ahead for this ETF type — main reason: 30 % equity partial exemption plus the allowance. But: for distribution-heavy ETFs (dividend yield > 4 %) or bond ETFs (no equity partial exemption in DE), the picture flips in favour of AT.
Loss offset — where are you more flexible?
Both countries have loss offsetting, but with different mechanics:
- Germany: two separate buckets — equity bucket (can only be offset with equity gains) and other capital income bucket (offsettable with ETFs, bonds, certificates, dividends). Losses automatically carry forward to the next year, indefinitely.
- Austria: global loss offset within the same assessment year — equity losses offset against ETF gains, bond losses against equity gains. But: losses lapse if they cannot be offset within the year — no automatic carry-forward without an assessment.
Practical consequence: AT investors should actively check at year end whether unrealised losses should be realised by sale to use them for in-year loss offset. In DE the buckets arise automatically — less attention needed.
Inheritance & gifting — the often overlooked difference
- Germany: ETF holdings are subject to inheritance and gift tax (ErbStG). Allowances by relationship: children €400,000, spouses €500,000. Tax rate 7–30 % depending on class and amount.
- Austria: no inheritance or gift tax (abolished in 2008) — ETF transfers from parents to children are completely tax-free. But: the original cost basis is transferred to the recipient, so the full KESt is due on the gain at the eventual sale.
For large portfolios or expected inheritance, Austria is significantly cheaper here — a potentially six- to seven-figure tax advantage across a generation.
Which broker for which country?
- DE resident: Trade Republic, Scalable Capital, comdirect, ING, DKB — all remit DE tax automatically. Vorabpauschale + allowance are handled by the broker.
- AT resident at AT broker (easybank, BAWAG, DADAT): final taxation runs automatically, provided the ETF is on the OeKB reporting-fund list.
- AT resident at DE broker: DE tax is withheld; credit it in your AT tax return (DE/AT DTA). More work, but also a wider choice of cheap ETFs.
- Emigration DE → AT or vice versa: note exit taxation (§ 6 AStG in DE), which taxes unrealised gains as if sold. On an EU move (so also to AT), a 7-year deferral is possible.
Tax optimisation calculator DE/AT
Country toggle DE/AT, automatic calculation of your ETF tax for 2026 — including Vorabpauschale (DE) or distribution-equivalent income (AT), allowance, equity partial exemption. Live calculator, no login.
Go to the tax calculator →Related topics
- Vorabpauschale in Austria? Why it does not exist — the most common DACH confusion explained.
- Vorabpauschale 2026 — complete guide — DE mechanics, formula, examples.
- AT vs DE — stock tax comparison 2026 — existing general stock comparison.
- Austria withholding tax 2026 — DTA & W-8BEN — for AT investors with US stocks.
- Stock tax Austria calculator — KESt calculator for AT assessment.
Frequently asked questions
Which country is overall cheaper for ETF investors?
For classic equity ETFs (MSCI World, S&P 500) and portfolios below €100,000, Germany is clearly ahead — because of the allowance and 30 % equity partial exemption. For bond ETFs, distribution-heavy strategies or inheritance/gift scenarios, Austria is often cheaper. Flat answer: it depends on the setup.
Can I save tax in DE and AT at the same time if I have both residences?
No. Dual residence does not bring double benefits. On the contrary: you are fully tax-liable in the country where you have your “centre of vital interests” (DE/AT DTA, Art. 4). In the other country you only have limited tax liability. More work, no tax benefit.
What changes when emigrating from DE to AT?
On exit from DE, § 6 AStG (exit tax) applies: unrealised gains on holdings ≥ 1 % are taxed as if sold — even without an actual sale. On a move within the EU (including AT), a 7-year deferral is possible. For normal ETF holdings below 1 %, § 6 AStG does not apply.
As an AT resident at a DE broker, do you get the Sparerpauschbetrag?
No. The €1,000 allowance only applies to DE tax residents. AT residents are usually treated as “limited tax-liable” in DE, so they get no allowance. The final tax in DE is withholding tax, which is credited in the AT assessment procedure.
What happens with “black funds” in Austria?
Non-reporting ETFs are charged the flat-rate punitive tax under § 186 InvFG: 90 % of appreciation or at least 10 % of year-end value — usually significantly more expensive than normal AGE taxation. Check before buying whether the ETF is on the OeKB reporting-fund list (oekb.at/fondsmeldung).
Are savings plans treated the same way for tax in both countries?
Yes — both DE and AT treat every savings-plan purchase as a separate tranche with its own cost basis (FIFO). On sale, the oldest shares are sold first. Neither country has a savings-plan-specific tax benefit.