Glossary

Tax-exempt investment income (Sparerfreibetrag)

Tax-free allowance for income generated by capital assets.

In Germany, income on capital assets (such as interest, dividends, etc.) is tax-exempt if it does not amount to more than 1,601 euros for singles, or 3,202 euros for married couples. Dividends and interest in excess of the respective limit are subject to investment income tax.

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