Taxes in Germany for Arab savers: how savings, gold, family gifts and income from abroad are taxed, with the legal source for every figure.
Taxes in Germany for Arab savers and investors: the short answer
Taxes in Germany reach almost every kind of saving: bank interest, dividends and fund gains pay a flat 25% plus solidarity surcharge above a yearly allowance of €1,000; physical gold sold after more than one year is tax-free; gifts from family are taxed only above generous allowances; and income from abroad must be declared, with treaties deciding where it is taxed.
This guide is written for Arabs in Germany who save, hold gold, receive money from family or own property or a business in their home country. It explains how the Finanzamt looks at each of these, in plain language and with the legal source behind every figure. It is general information, not tax or legal advice: your own situation can change the answer, so for decisions with real money involved, speak to a Steuerberater or a Lohnsteuerhilfeverein.
How does the Finanzamt look at your money?
The starting point is simple and often misunderstood. If your home is in Germany, the German income tax applies to your worldwide income, not only to the salary you earn here. A flat in Damascus, a shop in Amman, a deposit account in Cairo or dividends from a Gulf company are all, in principle, part of the picture the Finanzamt expects to see.
Everyone has a personal tax identification number (Steuer-ID), and returns are filed online through ELSTER, the official portal. Employees already pay wage tax through payroll according to their tax class (Steuerklasse I to VI); the annual return then settles the difference and adds whatever payroll could not see, such as foreign income or private sales.
Many people search for a way to calculate their taxes in Germany. For salary and income tax, the most reliable tool is the official calculator of the Federal Ministry of Finance. Two numbers frame every calculation: the basic tax-free allowance (Grundfreibetrag), which is €12,348 from the 2026 tax year according to § 32a EStG, and the progressive rates above it. Savings and investments, however, mostly follow their own rules, which is what the rest of this guide is about.
How are bank interest, dividends and ETFs taxed in Germany?
Income from capital, such as interest, dividends and gains on shares and funds, is taxed at a flat rate of 25% under § 32d EStG, known as Abgeltungsteuer. On top comes the solidarity surcharge of 5.5% of the tax (§ 4 SolZG), which brings the combined rate to 26.375%, plus church tax only for members of a church that levies it.
Every person has a saver’s allowance (Sparer-Pauschbetrag) of €1,000 a year, and married couples assessed jointly share €2,000 (§ 20 (9) EStG). With a German bank you activate it by giving the bank an exemption order (Freistellungsauftrag); the bank then withholds nothing until the allowance is used up, and withholds the flat tax automatically afterwards.
Two details matter for many families. First, if your total income is low, the law lets you ask for your capital income to be taxed at your personal rate instead, when that is cheaper (Günstigerprüfung, § 32d (6) EStG). Second, a foreign bank does not withhold German tax. Interest from an account abroad must be declared in your return yourself, on the form Anlage KAP. Germany also takes part in the automatic exchange of financial account information between tax authorities (the Common Reporting Standard, implemented in German law by the FKAustG), so foreign accounts are far more visible than many people assume.
Is gold taxed in Germany?
Gold is where German rules are most favourable to private savers, and also where small mistakes cost the most.
Buying. Investment gold is exempt from VAT under § 25c UStG. That covers bars and wafers of at least 995 fineness and coins of at least 900 fineness minted after 1800 that are or were legal tender. Jewellery is not investment gold: its price includes VAT and craftsmanship, which you do not get back when you sell.
Selling after more than one year. Physical gold is treated as a private asset. Under § 23 EStG, a sale is a taxable private transaction only if no more than one year passes between purchase and sale. After that, the gain is tax-free, however large it is. Keep the invoice: it proves the purchase date and price.
Selling within one year. The gain is added to your income and taxed at your personal rate. There is an exemption limit: gains from all private sales in a calendar year stay tax-free if the total is below €1,000. This is a limit, not an allowance. At €1,000 or more, the whole gain becomes taxable, not only the part above.
Gold on paper. Not every gold product is treated like a bar in a safe. The Federal Fiscal Court ruled on 12 May 2015 (VIII R 35/14 and VIII R 4/15) that Xetra-Gold bonds, which give the holder a claim to delivery of physical gold, follow the same one-year rule, as summarised by Deloitte. Products that only pay out cash, and gold funds, are generally taxed as capital income. Read the product terms before you assume a gold product is tax-free.
Cash and borders. A dealer must identify you when you pay €2,000 or more in cash for precious metals (§ 10 (6a) GwG with § 1 (10) GwG). When you travel to or from a country outside the EU, cash and equivalents worth €10,000 or more must be declared to customs, and that includes gold coins of at least 90% and bars of at least 99.5% gold content, according to the federal service portal.
For today’s price per gram and per ounce in euros, use our live gold price in Germany page rather than any figure printed in an article.
Do I pay tax on money my family sends me from abroad?
Moving your own money between your own accounts is not income. A transfer becomes relevant for tax when it is a gift. If you live in Germany, a gift you receive falls under German gift tax even when the giver lives abroad, but only above the allowances in § 16 ErbStG:
- From a spouse: €500,000
- From a parent to a child: €400,000
- From a grandparent to a grandchild: €200,000
- From a child to a parent, between siblings and from anyone else: €20,000
Each allowance applies per giver and renews every ten years, because gifts from the same person within ten years are added together. The recipient must report a gift to the Finanzamt within three months of learning of it (§ 30 ErbStG), unless it was certified by a notary. Reporting a gift below the allowance costs nothing and creates a clean record. In practice, banks also ask where larger incoming amounts come from, so a short written note from the giver and the transfer receipts save time later.
How is income from property or a business back home taxed?
Rent from a flat in your home country, profits from a shop or a share in a family company are part of your worldwide income. What happens next depends on whether Germany has a double taxation agreement with that country.
Under many agreements, rent from property abroad may be taxed where the property is. Germany then often exempts it but still uses it to set the rate on your other income, a mechanism called Progressionsvorbehalt (§ 32b EStG). Where Germany does tax the income, foreign tax paid can usually be credited (§ 34c EStG). Where no agreement applies, German law decides alone, and the foreign tax receipt becomes your most important document. The Federal Ministry of Finance publishes the status of all agreements each January; the current list is dated 7 January 2026, as noted here. Check your country on that list before you assume anything.
Selling property is a separate question. Under § 23 EStG, gains on land and buildings are taxable if they are sold within ten years of purchase, with an exception for a home you lived in yourself. For anyone looking at Syria as a market again, or at a running business in Türkiye or the Gulf, these rules belong in the calculation from the first day, together with the plain business questions we cover in franchise or an existing business.
Are zakat and German tax the same thing?
No. Zakat is a religious obligation and German tax is a legal one; paying one does not settle the other. A donation can reduce German income tax only under the conditions of § 10b EStG, which ties the deduction to recognised tax-privileged recipients and generally to a donation receipt, and caps it at 20% of total income. Whether a specific zakat payment qualifies depends on who receives it; ask the organisation for its tax status before you count on a deduction.
Which forms matter for savers and investors?
| What you have | German rule in brief | Where it goes |
|---|---|---|
| Interest, dividends, ETFs at a German bank | 25% + 5.5% surcharge above €1,000 (couples €2,000) | Withheld by the bank; exemption order |
| Interest or dividends abroad | Same rate, nothing withheld in Germany | Anlage KAP |
| Physical gold, held over one year | Gain tax-free | Nothing to declare; keep the invoice |
| Physical gold, sold within one year | Personal rate if total private gains reach €1,000 | Anlage SO |
| Gift from family | Tax only above the allowances per giver per ten years | Report within three months |
| Rent or profit from abroad | Worldwide income; treaty decides | Anlage AUS with the relevant income form |
| Property sold abroad | Taxable within ten years of purchase | Anlage SO |
A calm checklist before you invest
- Give your German bank an exemption order so the €1,000 allowance is used.
- Keep every gold invoice with the date, weight and fineness.
- List every account and asset you hold abroad, with the income it produced.
- Write down gifts received, with the giver, date and amount.
- Check the treaty status of your home country before buying property there.
- Before you commit money to an offer you received, run it through our Deal Check.
Frequently asked questions
Do I have to declare a bank account in my home country?
Income from it, yes. Interest and dividends from foreign accounts belong in your German return on Anlage KAP, because no German tax was withheld.
Is gold jewellery taxed when I sell it?
Jewellery is generally a private asset too, so the one-year rule of § 23 EStG is the usual reference. Jewellery loses value on resale because of craftsmanship and VAT, which is why savers prefer investment bars and coins. For valuable pieces, confirm the treatment with an adviser.
My parents sent me €30,000. Do I pay tax?
A gift from a parent to a child is tax-free up to €400,000 per parent within ten years. You should still report it to the Finanzamt within three months.
How can I calculate my taxes in Germany?
For salary and income tax, use the official calculator of the Federal Ministry of Finance. For savings, start from the €1,000 allowance and the 25% flat rate described above.
Can I get tax back in Germany?
Often, yes. Filing a return lets you claim work-related costs and other deductions, and it corrects capital tax withheld when your exemption order was missing or too low.
Good saving decisions start with clear rules. Good investment decisions start with honest numbers.
7Grounds Team
The 7Grounds team in Istanbul: strategists, designers, marketers and franchise and investor specialists working across Türkiye and the Gulf in Arabic, English and Turkish.
