Germany
Rate on capital gains26.375%
Annual allowance€1,000
Partial exemption30% for equity funds
Holding periodnone
Annual pre-taxationadvance lump sum
Dividendssame as capital gains
Notable pointexemption order required
Comparison tables
The most important comparisons at a glance. Each table also appears in the lesson it belongs to.
| Index ETF | Active fund | |
|---|---|---|
| Selection of holdings | tracks the index | a manager picks them |
| Ongoing costs | often 0.05 to 0.3% | commonly 1 to 2% |
| Front-end load | none | up to 5% possible |
| Trading | on-exchange, any time | usually once a day |
| Transparency | holdings visible daily | usually quarterly |
| Goal | match the market return | beat the market |
| Over 10 years | gets the index return | 98% recently fell short of it |
| Stock | Bond | |
|---|---|---|
| Your role | co-owner | creditor |
| Return | dividends and price gains | interest, repaid at maturity |
| Upside cap | none | capped at the agreed interest |
| In bankruptcy | paid last | ahead of shareholders |
| Main risk | the company's business | solvency and rate changes |
| Volatility | high | lower, but not zero |
| Rising rates | tend to be a headwind | push down the price of existing bonds |
| Savings account | Fixed-term deposit | |
|---|---|---|
| Access | any time | only at maturity |
| Interest rate | can change any time | fixed for the term |
| Typical level | usually a bit lower | usually a bit higher |
| Good for | emergency fund | a goal with a fixed date |
| Protection | deposit insurance up to €100,000 | deposit insurance up to €100,000 |
| After tax and inflation | often around or below zero | often around or below zero |
| Germany | Austria | Switzerland | Belgium | France | Italy | Spain | Netherlands | |
|---|---|---|---|---|---|---|---|---|
| Rate on capital gains | 26.375% | 27.5% | 0% for private investors | 10% | 31.4% (flat tax) | 26%, crypto 33% | 19–30% progressive | 36% on assumed return |
| Annual allowance | €1,000 | none | not applicable | €10,000 | none | none | none | €59,357 of net worth |
| Partial exemption | 30% for equity funds | none | not applicable | none | none | none | none | not applicable, different system |
| Holding period | none | none | not applicable | none | none | none | none | not applicable, different system |
| Annual pre-taxation | advance lump sum | deemed-distribution income | none | none | none | none | none | yes, on total net worth |
| Dividends | same as capital gains | same as capital gains | as income | 30% withholding tax | same as capital gains | same as capital gains (26%) | same as capital gains | included in assumed return |
| Notable point | exemption order required | choose a tax-simple broker | trading as a business voids the tax exemption | transaction tax per trade | PEA and life insurance wrappers have special rules | 0.2% extra levy with a foreign broker | savings-income bracket is nationwide | taxed regardless of sale |
Austria
Rate on capital gains27.5%
Annual allowancenone
Partial exemptionnone
Holding periodnone
Annual pre-taxationdeemed-distribution income
Dividendssame as capital gains
Notable pointchoose a tax-simple broker
Switzerland
Rate on capital gains0% for private investors
Annual allowancenot applicable
Partial exemptionnot applicable
Holding periodnot applicable
Annual pre-taxationnone
Dividendsas income
Notable pointtrading as a business voids the tax exemption
Belgium
Rate on capital gains10%
Annual allowance€10,000
Partial exemptionnone
Holding periodnone
Annual pre-taxationnone
Dividends30% withholding tax
Notable pointtransaction tax per trade
France
Rate on capital gains31.4% (flat tax)
Annual allowancenone
Partial exemptionnone
Holding periodnone
Annual pre-taxationnone
Dividendssame as capital gains
Notable pointPEA and life insurance wrappers have special rules
Italy
Rate on capital gains26%, crypto 33%
Annual allowancenone
Partial exemptionnone
Holding periodnone
Annual pre-taxationnone
Dividendssame as capital gains (26%)
Notable point0.2% extra levy with a foreign broker
Spain
Rate on capital gains19–30% progressive
Annual allowancenone
Partial exemptionnone
Holding periodnone
Annual pre-taxationnone
Dividendssame as capital gains
Notable pointsavings-income bracket is nationwide
Netherlands
Rate on capital gains36% on assumed return
Annual allowance€59,357 of net worth
Partial exemptionnot applicable, different system
Holding periodnot applicable, different system
Annual pre-taxationyes, on total net worth
Dividendsincluded in assumed return
Notable pointtaxed regardless of sale
| Investing | Trading | |
|---|---|---|
| Source of return | risk premium and value creation | being more right than the other side |
| Zero-sum or not | everyone can win | negative after costs |
| Time required | a few hours a year | full-time |
| The other side | doesn't matter | usually institutions and algorithms |
| Costs | low, because you trade rarely | high, because you trade often |
| Edge required | patience | a nameable information advantage |
| Place | Legal status | If the provider goes bankrupt |
|---|---|---|
| Securities in your brokerage account | segregated assets, your property | carved out and transferred to you |
| Cash in your settlement account | a deposit | protected up to €100,000 per institution |
| Fund units | segregated assets | not part of the bankruptcy estate |
| Crypto on a platform | often just a claim | an ordinary claim in proceedings |
| Crypto in your own wallet | you hold the keys | unaffected, but you bear the loss risk yourself |
| CFD account | a contract with the provider | a claim against the provider |
| Cryptocurrencies | Gold | |
|---|---|---|
| History as a store of value | since 2009 | for millennia |
| Generates income | no | no |
| Typical volatility | very high | low to moderate |
| Custody | your own wallet or an exchange | physical, certificate, or ETC |
| Regulation | inconsistent, still developing | long established |
| Role in crises | unclear, little history yet | traditionally sought as a crisis hedge |
| Biggest risk | total loss of individual holdings, fraud | loss of purchasing power over decades is possible |
| Forex | Stocks | |
|---|---|---|
| What you hold | a bet on an exchange-rate relationship | a share in a company |
| Generates income | no, pure price difference | yes, through profit and dividends |
| Typical leverage for retail traders | often high | usually none or low |
| Trading hours | essentially around the clock | during exchange hours |
| Main driver | interest-rate differences, monetary policy | company earnings, industry |
| Typical retail time horizon | usually short-term | short- to very long-term possible |
| Biggest risk | leverage and margin calls | price swings of the individual stock |
| Gold | Bonds | |
|---|---|---|
| Generates income | no | yes, fixed interest |
| Price driver | supply, demand, real interest rates | interest-rate levels, borrower's creditworthiness |
| Behavior when rates rise | tends to be a headwind | price of existing bonds falls |
| Default risk | none in the usual sense | depends on the borrower |
| Role in a portfolio | diversification, crisis hedge | stability, predictable income |
| Typical allocation | 5 to 10 percent | depends on time horizon, often much more |