Before You Start
- Confirm you are a tax resident of Germany, France, or the Netherlands for 2026
- Gather your broker statements for 2026 (e.g., Trade Republic, DEGIRO, Scalable Capital)
- Identify each ETF’s ISIN, domicile, and distribution type (accumulating/distributing)
- Know the total dividends received and capital gains realized in 2026 per ETF
- Check your country’s tax-free allowances for investment income
Time needed: 30–60 minutes per country
What you'll need: Access to your broker(s), calculator, official tax portal login for your country
Calculating ETF taxes can be confusing, especially when you invest across European borders. This guide shows you, step by step, how to calculate ETF taxes in Germany, France, and the Netherlands for the 2026 tax year. We’ll use real EUR examples, clarify how each country treats dividends and capital gains, and show you which numbers to report and where. Whether you use Trade Republic, DEGIRO, Scalable Capital, or another major broker, you’ll find actionable instructions below.
Step 1: Collect Your ETF Investment Data
What to do: Download your 2026 annual tax statement from your broker. This will show all ETF transactions, dividends, and capital gains.
- Trade Republic: Tap Profile → Documents → Tax Documents and download your 2026 “Jahressteuerbescheinigung”.
- DEGIRO: Go to Reports → Annual Report and export the 2026 report.
- Scalable Capital: Navigate to Documents → Tax Documents and download the 2026 summary.
Why it matters: Accurate data is essential for correct tax reporting. Missing or misclassified transactions can lead to overpaying or underpaying taxes.
What can go wrong? If you miss a dividend or sell transaction, your tax calculation will be incorrect. Double-check ISINs (e.g., iShares Core MSCI World UCITS ETF: IE00B4L5Y983) to ensure you’re tracking the right funds.
Pro Tip
Brokers like Trade Republic and DEGIRO provide tax reports in English and local languages. Always use the official annual summary, not monthly statements.
Step 2: Identify Taxable Events for Your Country
What to do: Understand which ETF transactions are taxable in your country:
- Dividends: Taxable in all three countries, even if reinvested.
- Capital Gains: Taxable on sale of ETF shares (not on unrealized gains).
- Accumulating ETFs: Special rules may apply (e.g., German “Vorabpauschale” for accumulating funds).
Why it matters: Each country has specific rules for ETFs, especially for accumulating (thesaurierende) versus distributing (ausschüttende) ETFs. Misunderstanding these can lead to underreporting income.
What can go wrong? Reporting accumulating ETF income incorrectly (e.g., ignoring the German “Vorabpauschale”) can result in tax penalties later.
Step 3: Calculate Your Taxable ETF Dividends
What to do: Add up all dividends received from ETFs in 2026. Use the EUR amounts shown in your broker’s tax report.
- Germany: All ETF dividends are taxable. If you use a German broker, taxes may be withheld automatically.
- France: All ETF dividends are taxable. French brokers usually withhold tax, but you must still report the income.
- The Netherlands: Dividends are taxable, but in practice, ETF investments fall under “Box 3” (wealth tax), not direct income tax. See Step 6 for details.
Example calculation:
- You receive €400 in dividends from iShares Core MSCI World UCITS ETF (IE00B4L5Y983) in 2026.
- Brokers may withhold tax at source. For cross-border ETFs, some foreign withholding tax may apply (e.g., US-domiciled funds may withhold 15% on US dividends).
Expected outcome: You have a total EUR amount of all ETF dividends received in 2026, ready to input into your tax return.
Pro Tip
If you use multiple brokers, combine all dividend amounts. Keep a spreadsheet with ISIN, ETF name, and dividend per broker for easy reference.
Step 4: Calculate Your Taxable Capital Gains
What to do: For each ETF sale in 2026, subtract your purchase price (including fees) from your sale price. The result is your capital gain (or loss).
- Germany: Taxable on realized gains only. Losses can offset gains within the same year.
- France: Taxable on realized gains. Losses can offset gains in the same year and be carried forward for 10 years.
- The Netherlands: Capital gains from ETFs are not taxed directly; instead, see Step 6 (“Box 3” system).
Example calculation:
- You bought 20 shares of Xtrackers MSCI Emerging Markets UCITS ETF (IE00BTJRMP35) at €50/share in 2025 (total: €1,000).
- You sell all 20 shares at €60/share in 2026 (total: €1,200).
- Capital gain: €1,200 - €1,000 = €200
Expected outcome: You have the EUR value of each capital gain (or loss) for all ETF sales in 2026.
Pro Tip
Use your broker’s “transaction history” to double-check purchase and sale prices. Platforms like Scalable Capital show realized gains under Performance → Realized Gains.
Step 5: Apply Country-Specific Tax Allowances and Rates
What to do: Check your country’s tax-free allowances and calculate the tax due on your ETF income after subtracting these allowances.
Germany
- Tax-free allowance: €1,000 per person (Sparer-Pauschbetrag) in 2026
- Tax rate: Flat 25% capital gains tax (+ solidarity surcharge and church tax, if applicable)
Example:
- Total ETF dividends: €400
- Total capital gains: €200
- Total investment income: €600
- Tax-free allowance: €1,000
- Taxable amount: €600 - €1,000 = €0 (no tax owed)
France
- Tax-free allowance: None for most ETFs, but a 40% allowance on certain French company dividends (not typically ETFs)
- Tax rate: Flat 30% (12.8% income tax + 17.2% social contributions) on investment income (“prélèvement forfaitaire unique”/PFU)
Example:
- Total ETF dividends: €400
- Total capital gains: €200
- Total investment income: €600
- Tax due: €600 × 30% = €180
The Netherlands
- Tax system: “Box 3” – tax on deemed return on total assets, not actual gains or dividends
- Tax-free allowance: €57,000 per person in 2026 (subject to legislative changes)
- Deemed return: Progressive, varies with asset level (e.g., 1.8–6.0% assumed return, taxed at 32%)
Example:
- Total ETF portfolio (1 Jan 2026): €50,000
- Other Box 3 assets: €10,000
- Total Box 3 assets: €60,000
- Tax-free allowance: €57,000
- Taxable base: €60,000 - €57,000 = €3,000
- Assumed return (say, 2%): €3,000 × 2% = €60
- Tax at 32%: €60 × 32% = €19.20
Why it matters: Applying these allowances and rates ensures you don’t overpay or underpay tax. The method is different in each country.
What can go wrong? Forgetting to apply the allowance (e.g., Sparer-Pauschbetrag in Germany) or using the wrong tax rate will lead to errors.
Pro Tip
In Germany, you can submit a “Freistellungsauftrag” to your broker so they apply the allowance automatically. In France, consider if the PFU or the progressive scale is better for your situation.
Step 6: Report Your ETF Income on Your Tax Return
What to do: Enter your calculated ETF income in the correct section of your country’s tax return.
- Germany: Use Anlage KAP form. Enter your total investment income and taxes already withheld by your broker.
- France: Use Formulaire 2042, section “Revenus de capitaux mobiliers” for dividends and “Plus-values mobilières” for capital gains. Enter the gross amounts and tax already withheld.
- The Netherlands: In your online tax return, fill in “Box 3: Vermogen”. Enter your total assets, including the value of all ETFs as of 1 January 2026.
Why it matters: Correct reporting ensures you pay only what you owe and avoid penalties. Most brokers do not automatically report to the tax authorities outside their home country.
What can go wrong? Mistyping amounts, forgetting to report foreign ETFs, or not including all brokers can trigger audits or fines.
Pro Tip
Use tax software compatible with your country (e.g., ELSTER for Germany, impots.gouv.fr for France, Mijn Belastingdienst for the Netherlands) to auto-check your entries.
Step 7: Double-Check for Special ETF Tax Rules
What to do: Review your country’s special rules for ETFs:
- Germany: For accumulating ETFs, calculate any “Vorabpauschale” (deemed income on unrealized gains). Your broker should provide this value, but check the Bundesfinanzministerium for updates.
- France: Some tax treaties allow you to reclaim foreign withholding taxes. Check your broker’s documentation for eligible ETFs.
- The Netherlands: Only the value of your holdings on 1 January determines your Box 3 tax. No capital gains or dividends to report separately.
Why it matters: Failing to account for special rules can result in paying too much tax or missing out on refunds.
What can go wrong? Ignoring the “Vorabpauschale” for accumulating ETFs in Germany is a common mistake. Not reclaiming foreign withholding tax in France can cost you money.
Pro Tip
Always check your broker’s annual tax report for country-specific notes, especially if you hold accumulating ETFs or non-EU domiciled funds.
Checklist: Have You Covered Everything?
- Downloaded all 2026 ETF tax reports from your brokers?
- Identified dividends, capital gains, and ETF types (accumulating/distributing)?
- Applied your country’s tax-free allowance or Box 3 threshold?
- Used the correct tax rates for your residency?
- Entered all figures in your tax return?
- Checked for special ETF tax rules?
Common Mistakes
- Forgetting to include all brokers or all ETFs in your tax calculation
- Not applying the German Sparer-Pauschbetrag or Dutch Box 3 allowance
- Reporting accumulating ETF income incorrectly (especially in Germany)
- Misunderstanding the French PFU vs. progressive scale option
- Using gross instead of net figures (or vice versa) when reporting
- Missing the deadline for reclaiming foreign withholding tax
Next Steps
- Log in to your country’s official tax portal and start your 2026 declaration
- Consider specialized tax software if you have complex ETF holdings
- Bookmark your broker’s tax documentation pages for annual updates
- Consult a tax advisor if you are unsure about cross-border ETF taxation
- Review your ETF portfolio for tax efficiency before the next tax year begins
For official guidance, visit:
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always do your own research and consider consulting a qualified financial advisor before making investment decisions.