Home > Investment Dictionary > Sparer-Pauschbetrag

Sparer-Pauschbetrag

Sparer-Pauschbetrag — an annual tax exemption on investment income in Germany. It allows a portion of investment income to be exempt from taxation provided a Freistellungsauftrag has been filed.

 

For many investors, this is one of the simplest ways to reduce their tax burden. If the allowance is not automatically applied through a broker or bank, it can be claimed later on a tax return.