ETF Investing Germany
2026: Expat Guide
An ETF (Exchange Traded Fund) is a stock-exchange-traded fund that passively tracks an index such as the MSCI World or DAX. To buy ETFs in Germany you need a Depot - a securities account held at a Direktbank (direct bank) or neobroker. ETF shares are Sondervermögen (special assets) under section 92 KAGB: they belong to you and are protected in the event of broker insolvency. Market risk remains, however - ETFs can fall in value as well as rise. Past performance is not a reliable indicator of future results. A savings plan (Sparplan) can often be started from as little as 1 to 25 euros per month.
Scope of this page: This guide explains the Depot account and ETF investment product, compares costs and taxes, and covers expat-specific steps to open a Depot. It does not cover general savings strategies or other investment products. For a broader finance overview see Finance Compare or the bank account comparison.
Key Takeaways at a Glance
- ETF shares are Sondervermögen (section 92 KAGB) - protected from broker insolvency, but market risk remains.
- Tax 2026: 25% Abgeltungsteuer + solidarity surcharge = 26.375%; Sparer-Pauschbetrag 1,000 euros/person tax-free (section 20 para. 9 EStG, BMF).
- Target TER under 0.3% (Finanztip); savings plans (Sparplan) available from 1 to 25 euros per month.
- ETFs carry market risk - a long investment horizon (10 to 15 years) is recommended. No return guarantee.
What you will find here
What is a Depot and an ETF? Direktbank vs neobroker
A Depot (Wertpapierdepot, or securities account) is an account used to hold securities - shares, ETFs, bonds and similar assets. It is not a cash account: it holds your ownership records for securities. To buy ETFs in Germany, you must have a Depot. An ETF (Exchange Traded Fund) is a stock-exchange-traded index fund that passively replicates a market index such as the MSCI World or DAX. Because ETFs require no active fund manager selection, their ongoing costs (TER) are significantly lower than actively managed funds.
Depots are available from two main types of provider: Direktbanken (direct banks) and neobrokers. The key difference lies in user experience and costs. For specific fees, always check the provider's current price list directly as these can change.
| Depot type | Characteristics | Typical costs (indicative) |
|---|---|---|
| Neobroker | App-based, simple interface, focused on securities trading | Account fee: mostly 0 euros; savings plan: mostly 0 euros; order fee: approx. 0-1 euro |
| Direktbank | Online bank without branches, broad product range (current account, savings, loans) | Account fee: often 0 euros; order fee: sometimes from 4.90 euros + 0.25% |
BaFin licence requirement: Every broker in Germany must hold a licence from the Federal Financial Supervisory Authority (BaFin) under the Securities Institutions Act (WpIG section 15). BaFin explicitly warns against platforms without a valid licence. You can check a provider's licence in the public BaFin company database before opening a Depot.
Need a bank account as your Depot reference account? Compare options in the bank account comparison. For a broader finance overview, see the finance comparison.
Costs compared: account fee, order fee, TER
The total cost of an ETF Depot has several components. The biggest long-term cost driver is usually the TER (Total Expense Ratio) of the ETF itself - the annual fund costs deducted directly from the fund assets. Finanztip recommends targeting a TER of under 0.3 percent for broad global ETFs. Many low-cost global ETFs have a TER between 0.05 and 0.20 percent.
| Cost type | Indicative range | Note |
|---|---|---|
| Account fee (Depotgebühr) | 0 euros (many neobrokers and Direktbanken) | Annual account maintenance fee |
| Order fee (Ordergebühr) | Neobrokers: approx. 0-1 euro; Direktbanken: sometimes from 4.90 euros + 0.25% | Per buy or sell order; varies significantly |
| Savings plan execution | 0 euros (many providers) | Monthly automated purchase; from 1 to 25 euros/month |
| TER (fund cost) | 0.05 to 0.20% per year (broad global ETFs) | Finanztip recommends under 0.3%; not a separate charge |
| Spread (bid-ask spread) | Varies by trading time and ETF | Higher outside Xetra trading hours - worth noting |
Savings plan tip for expats: If you want to invest a fixed amount regularly, an ETF savings plan (Sparplan) is often a cost-effective option. Most providers execute savings plans free of charge. The cost-averaging effect reduces market-timing risk - without guaranteeing returns. According to the Verbraucherzentrale, a long investment horizon of 10 to 15 years is recommended.
ETF taxes in Germany 2026: Abgeltungsteuer, Vorabpauschale, Teilfreistellung
German tax law for ETF investments has been based on the Investment Tax Act (InvStG) since 2018. Here is a plain-language explanation of the key terms - all figures are based on current law and the German Federal Ministry of Finance (BMF) as of June 2026.
| Term | Details 2026 |
|---|---|
| Abgeltungsteuer (withholding tax) | 25% + solidarity surcharge (Soli) of 5.5% on the tax = 26.375% total (section 32d EStG). Church tax of 8 or 9% additionally for church members (approx. 27.82 to 28.0% total). |
| Sparer-Pauschbetrag (savers' allowance) | 1,000 euros/person, 2,000 euros for married couples (section 20 para. 9 EStG, BMF). Capital gains up to this amount are tax-free - submit a Freistellungsauftrag to your broker. |
| Freistellungsauftrag | Instruction to your bank or broker not to deduct tax on gains up to the Sparer-Pauschbetrag. Submit once at each bank; can be split across multiple banks. |
| Vorabpauschale (advance tax) | Annual advance tax on accumulating ETFs (section 18 InvStG). Basiszins (base rate) 2026 = 3.20% (BMF, 13 January 2026; tax collected in January 2027). Indicative calculation: exact amount depends on ETF price and performance - your broker calculates and deducts automatically. |
| Teilfreistellung (partial exemption) | 30% for equity ETFs with more than 50% equity content (sections 2/20 InvStG). Only 70% of gains are taxable - effective tax falls to approx. 18.46%. |
For expats: As a resident of Germany you are taxable in Germany on your capital gains regardless of where the ETF is domiciled. Double-taxation treaties may affect individual cases. For personalised tax advice, consult a Steuerberater (tax adviser).
Safety: Sondervermögen, deposit insurance and BaFin
A common question from newcomers: "What happens to my ETFs if the broker goes bankrupt?" The answer is reassuring - but it is important to understand the difference between Sondervermögen and deposit insurance.
Sondervermögen (section 92 KAGB)
ETF shares are legally Sondervermögen (special assets). They are held separately from the broker's own assets. In the event of broker insolvency, your shares do not enter the insolvency estate - they must be returned to you or transferred to another Depot. (Source: Verbraucherzentrale, BVI)
Deposit insurance (100,000 euros)
Statutory deposit insurance covers bank deposits (current accounts, savings accounts) up to 100,000 euros. ETF shares do not fall under deposit insurance - and rightly so: they do not need it because they are already protected as Sondervermögen.
Market risk remains: Sondervermögen protects against broker insolvency risk - not against market losses. ETFs can fall in value. Under MiFID II: past performance is not a reliable indicator of future results. A long investment horizon of 10 to 15 years reduces volatility risk in historical experience, but does not guarantee positive returns.
BaFin licence check: Every broker in Germany must hold a BaFin licence under the Securities Institutions Act (WpIG section 15). BaFin actively warns against unlicensed platforms. Check a provider's licence in the public BaFin company database before opening a Depot.
Opening a Depot as an expat: registration, tax ID, identity check
As an expat or newcomer in Germany, you can open a Depot - provided you have the required documents and meet the eligibility criteria. Requirements are broadly similar across all licensed brokers.
Typical requirements to open a Depot in Germany
- Registration certificate (Anmeldebescheinigung): Proof of registered address in Germany
- Tax ID (Steueridentifikationsnummer): Sent by post from the Federal Central Tax Office after registration (allow 4 to 6 weeks)
- German reference account: A German bank account for deposits and withdrawals
- Minimum age: 18 years
- Identity verification: PostIdent (at the post office) or VideoIdent (online video chat)
Non-EU citizens and US persons: Citizens from non-EU countries may face stricter checks - requirements can vary by broker, so ask the provider directly. US persons (subject to US taxation and FATCA) are generally rejected by most German brokers due to the high administrative burden.
ETF savings plan and Altersvorsorgedepot from 2027
With an ETF savings plan (Sparplan) you invest a fixed amount regularly - often from as little as 1 to 25 euros per month depending on the provider. The cost-averaging effect reduces the market-timing risk at entry, but does not guarantee positive returns.
From 1 January 2027, the new Altersvorsorgedepot (AV-Depot)pension savings account will be introduced (Bundesrat resolution of 8 May 2026): contributions of 120 to 1,800 euros per year are eligible, with a Grundzulage (base allowance) of up to 540 euros per year possible. This could make ETF savings plans tax-advantaged for retirement purposes.
Interested in comparing credit options in Germany? See the credit comparison. For insurance options for newcomers, see the newcomers insurance guide.
Next steps: useful comparisons for expats
This page is a guide, not a product comparison tool for Depot providers. For specific offers, compare directly with licensed providers. Explore the related comparisons below for your financial life in Germany.
Advertising disclosure: meinetarife24 earns commissions from partner providers. No additional cost to you. All editorial content is independent.
Frequently Asked Questions
Related topics
How We Compare: Sources and Methodology
All tax figures, cost ranges and legal descriptions on this page have been verified against publicly available Tier-1 sources (as of June 2026). We only cite figures and statements backed by the sources linked below. How we compare: we cross-reference official legislative texts, government publications and independent consumer organisations.
- German Federal Ministry of Finance (BMF) - Basiszins Vorabpauschale 2026 - Base rate 3.20% for tax year 2026, published 13 January 2026
- BMF - Section 20 para. 9 EStG (Sparer-Pauschbetrag) - Savers' allowance 2026: 1,000 euros/person, 2,000 euros married couples
- gesetze-im-internet.de - Section 20 InvStG (Teilfreistellung) - 30% partial exemption for equity ETFs with more than 50% equity content
- BaFin - Company database (WpIG licence check) - Broker licence requirement under WpIG section 15; BaFin warnings against unlicensed platforms
- Verbraucherzentrale - ETF: risk and Sondervermögen - Sondervermögen section 92 KAGB, deposit insurance, market risk, investment horizon
- Finanztip - ETF taxes (2026) - Abgeltungsteuer, Teilfreistellung, Vorabpauschale, TER recommendation under 0.3%
- Verbraucherzentrale - Neobrokers: costs and risks - Neobroker comparison, order costs, savings plan, risks overview