Sales profits and dividends are taxed as capital income. The tax rate for capital income is 30% if the income is no more than €30,000. If the income exceeds this amount, the tax rate is 34%. Expenses and losses from sales are tax-deductible.
Investment refers to the acquisition of stocks and shares, fund units and real estate, as well as trading in order to make profit.
Sales profits are taxed as capital income
Sales profits from investments are taxable as capital income. The capital income tax rate is 30%. A tax rate of 34% applies to capital income that exceeds €30,000.
Loss from sales is deducted from capital income
Losses resulting from sales are deducted from all capital income. Sales losses from before 2016 are deducted only from sales profits, not from all capital income.
If you have no capital income or if you have less capital income than deductible sales loss, the deduction is carried forward to the following five years. Sales losses do not entitle you to deficit credit in the taxation of earned income.
Sales profits are tax-exempt if the selling prices are no more than €1,000
If the total selling prices during the calendar year do not exceed €1,000, sales profits are exempt from tax. The same goes for sales loss: losses cannot be deducted if the acquisition prices of assets sold during the year were no more than €1,000 in total.
Tax-at-source collected by the bank is the final tax
If the bank collects tax at source on interest income (30%) for an investment (e.g. bank deposits), this is the final tax. This means that such deposits do not need to be reported to the Tax Administration.
Surplus distributed by cooperatives
Of surplus distributed by a cooperative society, 25% is treated as taxable capital income, whereas 75% is tax-exempt income up to €5,000. If you receive more than €5,000 of cooperative surplus, 85% of the exceeding part is taxable capital income and 15% is tax-exempt income.