Find general guidance about taxes when using Wise Interest or Stocks.
When you turn on Interest or Stocks, you’re investing in units in a fund. If you’re a German tax resident, this means you may need to pay income tax and capital gains tax.
Capital gains tax can become due when you dispose of units in the fund and you realise a gain. In other words, when you spend, send, convert or move money to another account.
Income Tax may also be due, based on an annual deemed return on investment — this is calculated based on the fair market value of the fund units you hold on 1 January. Wise will provide you with the fair market value for each relevant tax year. You’ll find this in your yearly tax report — see Understanding taxes when using Wise Interest or Stocks.
Filing a tax return
You may need to submit a personal income tax return for the relevant financial years with the German tax authorities.
You can find more information on the Germany tax administration website.
If you're a sole trader using Interest or Stocks, the guidance above does not apply to you — we’d advise speaking to your own tax advisers.