Vorabpauschale 2026 — Formula, Example, Liquidity Buffer
2026 brings the most expensive Vorabpauschale ever, due to a high base rate (2.53 %). Anyone with €100,000 in an accumulating MSCI World pays roughly €327 tax in January 2027 — on unrealized gains.
What is the Vorabpauschale?
The Vorabpauschale is a fictional annual minimum tax on accumulating and partially-accumulating funds in Germany. Introduced via Investment Tax Act 2018 to prevent indefinite tax deferral via reinvestment.
In short: holding an accumulating ETF that gains value during the year — you pay a small advance tax even before selling.
The formula
Calculation scheme
2) Vorabpauschale = MIN(Base income, value gain of fund)
3) Taxable amount = Vorabpauschale × (1 − Partial exemption)
4) Tax = Taxable amount × 26.375 % (cap.gains + Soli)
Important: Vorabpauschale only applies if the ETF actually rose in value. In losing years = €0. It's automatically debited from settlement account in January of the following year.
Concrete example: €10,000 MSCI World 2026
€10,000 iShares Core MSCI World (accumulating)
→ With unused €1,000 savings allowance: €0 tax. Only over €1,000 total capital income do you pay.
Vorabpauschale €1,771 · Partial exemption 30 % → €1,240 taxable · Tax ≈ €327. Already maxing out savings allowance via dividends? You'll need cash on hand in 2027.
Liquidity buffer in settlement account
In early January the broker auto-debits Vorabpauschale tax from settlement account. If no cash, Trade Republic may sell ETF shares in worst case — incurring spread costs and a tax-realization event.
Keep 0.3–0.4 % of equity ETF value as cash buffer. €150–200 cash on €50,000 portfolio. €1,000 on €250,000. Covers base-rate fluctuations too (rises to 3 % → 0.5 % buffer).
FAQ — Vorabpauschale
When exactly is Vorabpauschale debited?
In January of the following year — typical Jan 2–10, 2027 for tax year 2026. Trade Republic, Scalable, Comdirect, ING etc. handle it automatically. Tax certificate arrives in February.
Also for distributing ETFs?
Yes, but only when distribution falls below base income. Example: Vanguard FTSE All-World yields ~1.8 % → at base rate 2.53 % × 70 % = 1.77 % base income → near-zero or no Vorabpauschale.
What in a losing year?
Vorabpauschale = €0. Calculation requires the ETF to have gained value in the year. Falls fully away if negative.
Does Vorabpauschale affect later sale?
Yes — already-paid Vorabpauschale is deducted from disposal gain at sale. No double taxation. Example: 5 years of €700 total Vorabpauschale → on sale, €700 deducted from gain.
Is there one in Austria too?
No — Austria has no Vorabpauschale. AT taxes deemed distributions (AGE) annually instead, similar in effect (see AT-ETF page).