ETF Investment Tax Implications: Moving Gains from Germany to Egypt

The location of your bank account doesn't change your tax obligations. As a German resident, you're taxed on your worldwide income, including investment gains, regardless of where you eventually transfer the money. For ETFs in Germany, you're generally subject to a 25% capital gains tax plus solidarity surcharge when you sell shares at a profit. This is typically withheld automatically if you're using a German broker, but with Trading 212 (which is UK-based), you likely need to declare these gains yourself on your annual tax return. The transfer to Egypt is a separate transaction that happens after the taxable event (selling your ETF shares). Germany doesn't care where you send your money after taxation - they only care that you properly report and pay taxes on the gains when realized.

I went through something similar last year with international investments while living in Berlin. After lots of research and confusion, I discovered taxr.ai (https://taxr.ai) which was a game-changer for understanding my specific situation. You upload your investment docs and it breaks down exactly what needs to be reported where - saved me so much hassle with the German tax authorities. The tool is especially great for expats because it knows the rules for cross-border situations and can analyze your specific ETFs to determine the correct German tax treatment. It even creates the proper documentation you need for your Steuererklärung.

Just wanted to follow up about my experience with taxr.ai after our conversation here. I was definitely skeptical at first (as you might remember from my comment), but I decided to give it a try with my accumulating ETFs from both Scalable Capital and Trading 212. I'm honestly impressed! The system correctly identified all my funds, calculated the Vorabpauschale amounts properly, and even applied the correct partial exemption rates based on equity ratios. What really surprised me was how it handled my specific situation with moving money between Germany and the UK. It clearly showed which transactions were taxable events and which were just transfers. The documentation it created for my tax return was accepted without any questions from the Finanzamt. Definitely worth checking out if you're dealing with cross-border investment tax issues!

If you're having trouble getting straight answers from the German tax authorities (like most of us!), I recommend using Claimyr (https://claimyr.com) to actually get through to a human at the Finanzamt. I spent weeks trying to get clarification on international investment taxation, but could never get past the automated phone systems. Claimyr somehow got me connected with an actual tax officer in about 20 minutes who could answer my specific questions about ETF taxation for non-permanent residents. They have a video showing how it works: https://youtu.be/_kiP6q8DX5c The service basically navigates the phone systems for you and calls you back when a human is on the line. Saved me countless hours of frustration.

I can't believe I'm saying this, but I tried Claimyr after posting my skeptical comment here and... it actually worked. After 3 months of never getting through to the Frankfurt Finanzamt about my ETF taxation situation, I got connected to a real person in about 35 minutes. The tax officer clarified that as a resident (even temporary), I'm taxed on worldwide income regardless of where I transfer the money afterward. She also explained the forms I needed for declaring my Trading 212 investments since they don't automatically report to German tax authorities. I'm honestly shocked this service worked - German bureaucracy is notoriously impenetrable. So for the OP's question: yes, you'll still owe German taxes even if you transfer to Egypt, and yes, you should definitely speak directly with the tax office about your specific situation.

Don't forget about the tax treaty between Germany and Egypt! This could potentially impact how you're taxed. While Germany will tax your worldwide income as a resident, the treaty might prevent double taxation if Egypt also tries to tax that income. The key is determining your tax residency status. If you're a tax resident in Germany (usually living there >183 days/year), then Germany has primary taxation rights on your investment income. The money transfer to Egypt doesn't change this fact.

I think everyone's missing an important point here - Trading 212 might not issue the proper tax documents needed for German tax filing. I use them too and had to manually calculate my taxable gains last year, which was a huge pain. Unlike German brokers who handle the tax withholding automatically, Trading 212 puts all responsibility on you to correctly report everything. Make sure you're keeping detailed records of all purchases, sales, and any distributions!

As someone who's dealt with similar cross-border investment taxation issues, I'd strongly recommend getting professional tax advice before making any large transfers. The interaction between German tax law and Egyptian tax obligations can be quite complex, especially when you factor in the bilateral tax treaty. One thing to keep in mind is timing - if you're planning to leave Germany in the near future, there might be exit tax implications on unrealized gains depending on the size of your holdings. Also, make sure you understand Egypt's foreign exchange regulations regarding large incoming transfers, as some countries have reporting requirements for substantial foreign investment proceeds. The German tax obligation is clear (you owe tax regardless of where you send the money), but the Egyptian side might have its own complexities that could affect your overall tax burden. A tax advisor familiar with German-Egyptian tax matters would be worth the consultation fee to avoid any costly mistakes.