Exemption Order 2026 — Use the €1,000 Savings Allowance Correctly
Every German investor has €1,000 savings allowance per year — couples together €2,000. But only with a correctly set up exemption order at brokers does the amount stay tax-free. Here's the guide with splitting examples.
What is the savings allowance?
The Sparerpauschbetrag is Germany's ETF tax gift: per person, €1,000 in capital income per year stays completely tax-free. Above that threshold, 25 % capital gains tax applies. For married couples filing jointly, it doubles to €2,000.
The allowance replaces older values: deductible expenses (€51) + savings tax-free amount — now combined in one €1,000 pot. Increased from €801 in 2023 (inflation adjustment).
How the exemption order works
For the allowance to actually apply, you must set up an exemption order with each broker. Without it, the broker stoically withholds 25 % even on a €50 dividend. You'd have to reclaim via Annex KAP — cumbersome.
How to set it up
- Broker login → Profile/Settings → "Exemption order" or "Tax forms"
- Enter amount (e.g. €1,000 for a single broker)
- Provide your Tax-ID (on tax notice)
- For couples: spouse Tax-ID + their consent
- Confirm — usually active within 1–2 working days
Splitting across multiple brokers
With multiple brokers (Trade Republic + ING + Comdirect), the €1,000 allowance must be split — total can't exceed €1,000 or you have trouble with the tax office.
Single with 3 brokers — allocation
Spouse splitting (joint application)
Married couples filing jointly have €2,000 allowance. Both Tax-IDs on the application, both sign. Useful when one partner has e.g. only €200 capital income (not using their €1,000) while the other has €1,500 (exceeding own €1,000).
With husband €1,500 dividends + wife €200 = €1,700 total. Without joint application: husband pays tax on €500 (≈ €132), wife €0. With joint: all €1,700 below €2,000 allowance → €0 tax. Saves €132/year.
NV certificate — alternative for low earners
Anyone permanently without taxable income (students, retirees with <€12,000 pension, jobless homemakers) can request a non-assessment certificate (NV) from the tax office. Then the broker withholds nothing at all — even above €1,000.
Student with €9,000 BAföG + €3,000 stock gains → total below basic allowance (€12,084 in 2026) → request NV from tax office, send to bank → 0 % deduction. Saves ~€791 on €3,000 gains (= 26.375 % on €2,000 above €1,000 allowance).
FAQ — Exemption Order
Can I set the exemption order retroactively?
No — it applies only from receipt at the broker. Setting it July 1 means only from-July earnings are exempted. Tax already withheld earlier must be reclaimed via Annex KAP.
What if I accidentally allocate more than €1,000?
Federal Central Tax Office gets the report and corrects you automatically. Usually a friendly letter requesting reduction. Intentional fraud means tax evasion charges — allocate conservatively.
Annual renewal?
No, it runs indefinitely. Change it anytime (amount or split) — broker processes within 1–2 days.
Foreign brokers (e.g. IBKR US)?
No exemption order in the German sense at US-domiciled accounts. Reclaim allowance via Annex KAP (line 19). Same math, more effort.
How does it work at Trade Republic?
In-app: Profile → Tax → Exemption order. 30 seconds, active next working day. Tax dashboard always shows how much of your allowance is consumed.