FNG Exclusive… FNG has learned that Germany will be reversing a 2020 tax law that has kept many German retail traders out of the CFDs trading market – and which should draw in many more German retail clients into CFD brokerages moving forward.
Germany CFD tax background
In late 2020, Germany’s Bundestag passed the Annual Tax Act 2020 which – among other things – limited the amount of CFDs trading losses which a trader could offset (for capital gains tax purposes) against gains to €20,000 per year. Germans are taxed on gains from securities trades (and other capital gains) at about 25%.
So, for example, under the old law passed in 2020 if a trader totaled his or her ledger at the end of the year, and had some trades that made money – say totaling €1 million – and some other trades that lost money – say totaling €600,000 – the trader would be liable to pay €245,000…
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