The tax exemption order allows you to avoid paying taxes on capital gains up to a specific amount (1,000 EUR or 2,000 EUR for spouses). Only users registered under Trading 212 FXFlat with tax residence in Germany can benefit from the feature.
How does it work?
When you close a CFD position and make a profit, Trading 212 automatically deducts taxes. However, if your cumulative profits are below your exemption limit, those profits will be tax-free.
đź’ˇ Example
- Profit of 1,000 EUR: You use up 100% of your exemption. Future profits will be taxed.
- Loss of 500 EUR: Your exemption is refilled back to 500 EUR.
- Profit of 600 EUR: You use up the remaining 500 EUR of your exemption. Taxes are applied to the remaining 100 EUR.
How do I set up the order?
- Go to Settings
- Select Tax overview
- Choose the amount (up to 1000 EUR)
- Select whether you wish to auto-renew the order
- Choose your marital status
- Confirm
How can I benefit from the increased exemption order amount?
If you’re married, you can apply for the 2,000 EUR exemption by providing your spouse’s details:
- First and Last Name
- Date of Birth
- Tax ID
We will then verify the details and adjust the allowance.