New German Capital Income and Capital Gains Laws Mean Increased Taxes for Investors

January 29, 2009
Germany has enacted a 25% flat rate income tax (Abgeltungsteuer) on all capital income and capital gains for individual investors. This substantial revision to prior law will result in increased taxes to German investors in German and foreign companies, especially to management and other individual investors, and to some foreign investors in German companies. This update examines how the new laws affect individual, business, and institutional investors.