Financial Terms Glossary
The most important financial terms - with simple and concise explanations.
Saver’s tax allowance
The saver’s tax allowance (German: Sparer-Pauschbetrag) is an annual tax-free amount for capital income such as interest, dividends, or realised capital gains. Up to this amount, no final withholding tax, no solidarity surcharge and, if applicable, no church tax is due.
The allowance currently amounts to €1,000 for individuals and €2,000 for jointly assessed partners. Investors can make use of the allowance by submitting an exemption order to their bank. Otherwise, the final withholding tax is automatically withheld and can be reclaimed later via the income tax return.
(As of: 2026)