The holding period in Germany is twelve months – i.e., capital gains resulting from the purchase or sale of securities held for less than a year are subject to income tax. In Germany, all capital gains realized after the holding period has elapsed are tax-free. Investors can offset capital gains and capital losses recorded during a given year on their tax return. If an investor's net gains in a given calendar year amount to less than €512, they will be tax-exempt irrespective of how long the securities were held. If this tax exemption limit is exceeded, the entire amount of capital gains is subject to tax.