- September 30, 2023
- Posted by: legaleseblogger
- Category: Related News
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Seeking Advice on Maximizing Tax Efficiency for Future Investment Withdrawals in Germany
Introduction
Hello everyone,
I am reaching out to seek your valuable advice on making my future withdrawals from my investments in Germany as tax-efficient as possible. Currently, I have a six-figure investment split between two ETFs with Vanguard Invest Direkt, with 80% allocated to equities and 20% to bonds. Additionally, I consistently contribute a four-figure amount every month towards my investments.
Investment Details
To provide more context, both of the ETFs I have chosen are accumulating rather than distributing funds. My ultimate goal is to achieve financial independence, where I can rely solely on a 4% annual withdrawal from my investments without needing any additional income.
Important Background Information
Before delving into my query, let me provide some crucial background information. I am an EU citizen residing in Germany and working for an international organization that is not subject to German tax or labor laws. Hence, I do not have a “German” employer. Furthermore, I have officially left the Catholic Church in Germany, freeing me from church tax obligations.
Tax Implications: “Abgeltungssteuer”
At present, it appears that I am subject to the “Abgeltungssteuer,” a tax on capital gains and dividends, which stands at 25%. In addition to this, there is a 5.5% solidarity surcharge, equating to 1.375% of the Abgeltungssteuer. As a result, my total Abgeltungssteuer for each future withdrawal is estimated to be 26.375%.
Considering the Complexities and Seeking a Solution
I acknowledge that the tax situation is more intricate due to factors such as “Teilfreistellung” and “Freibetrag.” However, for the purpose of this inquiry, I want to focus primarily on the bigger picture of making my future withdrawals as tax-efficient as possible.
It is worth noting that an Abgeltungssteuer of approximately 26.375% seems quite substantial in my case. Therefore, I am keen to explore any potential strategies to restructure my investments, even if it entails financial implications, complications, numerous communications, or switching providers. My aim is to minimize the impact of the Abgeltungssteuer.
Role of AI Legalese Decoder
In this context, I came across an intriguing solution called the AI Legalese Decoder. This innovative technology uses artificial intelligence to decipher complex legal language, providing meaningful insights and recommendations. With its assistance, investors like myself can navigate the intricate web of tax regulations, optimizing their strategies to achieve optimal tax efficiency.
Conclusion
Thank you in advance for your advice and recommendations on how I can rearrange my investments today to mitigate the impact of the Abgeltungssteuer. I am open to exploring various options, even if they require additional effort or initial financial adjustments. Once again, I appreciate your inputs and look forward to your guidance.
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Introduction
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****** just grabbed a
> my total Abgeltungssteuer should be 26.375% for each future withdrawal.
Not on the withdrawal, but only the profit part.
Can you move out of Germany to somewhere more tax friendly? Get reassigned to another office
The problem here really is, you need a financial advisor. There is way easier ways of gaining tax free money in Germany with the sum you are ready to invest. You can also do it the proposed way, but anything I could recommend would probably not meet a decent standard if you plan on staying in Germany.