A couple of things for beginners. 1: You need to pay 25% capital gains tax on profit if you withdraw with profit. 2: The customer service of Scalable capital is really poor (can´t use the word that I wanted to). When you ask them for huge withdraws or ask them some specific financial docs, they take forever, telling from a personal experience.
Hey Ahsan, great video - very helpful espescially for an expat in germany. Would love to see a video regarding taxation in germany - maybe a bit in detail. Also, question: acc or dist is better in the long term based on the taxation system in germany?
I have a video on that topic in 2 weeks so make sure you have turned Notifications on. Acc and Dist are quite similar in terms of Taxation. For dist. you are taxed directly when a distribution is given and a small portion is taxed at the starting of the year. For Acc. the tax is cut at the starting of the year. In terms of overall growth, Acc. ETFs have a higher growth rate as ther dividends are auto re-invested.
Hey Ashan, great video. However, I am little bit curious why you bought bayer, Exon etc shares instead of big tech like Apple, Nvidia etc. And would love you to see more video about crypto..
Well this portfolio was originally started as a Dividend portfolio with companies that I was following. And an ETF focused on the IT sector along with Crypto Investing. Now the portfolio has some investments that have little to do with Dividends like Microsoft and Apple. So its not an actual dividend portfolio anymore. More details in my video today :)
Regarding the taxes on foreign investment. Does that mean that the dividends from an ETF on S&P will be taxed differently than divdax when profit below 1k yearly? Thanks for all the videos!
Amazing journey! I have been following you for quite some time now. I am wondering how are you managing your Vorabpauschale that you have to pay towards the Finanzamt? Maybe you can explain that in some other video?
@@ahsanfinance How does the Vorabpauschale gets deducted from one's account? I believe we have to pay the Vorabpauschale via the Scalable capital depot Konto (here from Bader bank) but so far I havent seen this getting deducted from my depot account. Maybe you can explain this process?
I will make a detailed video on it soon. In the mean time you can read a short summary which I created as a community post. You can head over there to see it: www.youtube.com/@ahsanfinance/community
hey Ahsan what do you mean by savings plan? what if we do not generate savings Plan? IS Savings Plan Beneficial? THere are 3 types in Bitcoin, in which have you invested?
Hi Ahsan, great video! Thank you for creating this type of content. I used to invest when I was living in the USA, we just moved to Germany and I want to start investing here. In the USA the 20% capital gains tax goes down to 10% if you wait for more than one year before your realize them (it becomes long term capital gains). Is there something like this in Germany? Thanks
Glad you liked the video. Since 2009 there is no long term capital gains tax in Germany. Its a flat 25% (+soli+church tax) on Capital Gains. If you havent found out already, let me share the bad news with you that most German brokers do not accept US citizens accounts due to IRS regulations. So here you would either have to still use US brokers or International brokers that are present in the US and Germany.
This option is for people who want to transfer their account to Scalable Capital. If you have completed your video identification then you do not need to do anything else. Your account will open in the next few days
Hi Ashan, great content, thank you making it so easy to understand. I have two questions for you, 1. Are the ETF and stocks you are investing grow with compound interest (reinvestment of profits). If yes then what is the compounding period? 2. Is there any index fund (not ETF) to invest from Europe?
Glad you liked the video, for your first question there is nothing fixed with investing in stocks and ETFs. The term compounding period is used based on historical data. For example the stock market gave a return of average 7% in the past 20 years. So years it was high some it was negative. The investment period itself is not fixed, you can buy and hold for a minute or years. Regarding EU index funds, you can look into dax30 to follow the German Dax index, the FTSE 100 for the UK market. And MSCI also has EU market ETFs
Hey brother, Well done. Can you transfer money into your account from other sepa member countries bank accounts? Or only the bank account that you sign up to with?
If you have multiple positions, you will have to close them by selling each one completely. Then you will see all the funds in the cash section. From there you can use the payment button and pay out to transfer the funds to your Girokonto
Amazing video bro,a doubt as a beginner,Should i invest in mutual funds and sip’s in India for example if i want to start with a worth of 500 euros per month, or should i invest in Germany etfs and stock market
Well i am not exactly aware of the Indian market so I can't really comment on that. But if you want to take advantage of the yearly 1000€ tax free limit, then you should look into investing in Germany.
Hi ahsan bhai, great video , can I know apart from the auto tax deduction from scalable capital do we expect any further deduction from finanzesamt when filing tax return? also is the flat 25% tax ded applied on unlimited trading per annum?
As a single you have a maximum of €1000 across all investing apps. So if you only use SC then add €1000 . But remember this €1000 includes the tax free limit for all capital gains per year, including interest earned from banks.
Yes and no. So there is something called the "vorabpauschale" or the "Advance Flat Rate Tax" on unrealized gains on ETFs. This tax previously negligible due to the extremely low interest rates. I wrote a post on it if you want to calculate the advance tax : ua-cam.com/users/postUgkxKRrSUObvoXU9Bc4Sw4ZCXaOMlFiyE-_j
Hi Ahsan, I have 2 questions I have already made an account on eToro before coming to Germany. Should I create a new account on Scalable or keep using eToro? and how can I deposit funds in my eToro account? I am trying to add funds first time from my Germany and eToro is suggesting getting a Euro account, can you share your insights about it as well.
I do not recommend using eToro anymore. I like Scalable Capital and Trade Republic because they are regulated in Germany and do your taxes for you. As far as eToro is concerned, I think you will need to provide your German details and they might convert your account to a German one.
Hi, i had a small query if you dont mind responding will be greatfull.😊 Due to some events i couldn't continue regular investment in My ETF (ishares core MSCI world ACC ) started in oct 2021 and couldn't invest further from 2023 onwards! Total value 3k invested. It has great growth but i am not sure if i can resume investing again does it effect in anyway ?
Hi Ahsan, as usual thanks for making such an information video. Can you also please make some videos about the taxation part of ETF investments and also pro and cons of ACC vs Distributing stock, in Germany, please. Thanks in Advance.
I tried investing in various ETFs, for example : S&P500, MSCI world, MSCI emerging markets but I personally found that I follow IT companies regularly due to my Job. So it makes more sense for me to invest in such companies.
Hi Ahsan, in Transactions, Is the Market valuation in single Sparplan ETF the price we invest? E.g. i invest in an etf 50€ as sparplan but on the Transaction Overview is like - 49.97€ . My guess is may be the price of the shares doesn't match with that 50€. I need your help please. Thank you Sir
Hi ahsan, if I invest 100€ as saving plan in S&P 500 ETF for 1 year and then sell it, i invested around (100×12)= 1200€ in one year. So what is the interest or profit which I will get after selling it after 1 year? And do they pay dividents monthly as well?
Well there is no guarantee with investing in the stock market. We can only speculate based on the historical performance. The Sp500 has an average return of 7% . Some years this can be negative and some years its more than 10% As far as dividends are concerned, there are ETFs that pay dividends some dont.
No this is not a fixed number and this is also an unrealized growth or loss in the value of your investments. Please watch this video for further details : ua-cam.com/video/8Mt2YEzq-1A/v-deo.html
I just wanted to thank you for your efforts on this channel. As an immigrant to Germany you’ve given me the confidence and the tools I need to start investing👍
@Ahsan Finance: could you please advise 1 or 2 best Dividend yielding ETFs that i can select to start as a beginner. Do u advise Germany based Dividend ETFs?? I have already 2 Accumulating ETfs in my portfolio.
Thats a very difficult question to answer. Assuming 7% growth per year in 20 years you should have: €245,972.95 . Would it be enough? Only you can answer
A quick question, what do you do so that you're capable of investing a huge amount every month? What is your yearly income as living in Germany is highly costly.
Thanks for sharing your portfolio. Can you please address a couple of questions: - Can I move my portfolio from Germany to UAE, what are my options? - I read somewhere that SC applies 25% on the annual profit. Does that mean that if I am earning 100 euros on my portfolio then I get 75 euros in cash in that year? - If I have a multiple stocks (5+), cryptos, ETFs under savings plan than I believe it will be around 10+ transactions from my current bank account to SC. Is it a nice idea to have a free SC plan or should I upgrade my plan with SC?
Glad you liked the video. 1. You have to check with the UAE Broker you want to move to, if they accept Securities account transfer. There is no restriction from Scalable Capitals side. 2. There is a tax on ETFs , did you mean that or something else? 3. As long as the purchases are through a savings plan, all of them would be executed free of charge. So I don't see a need for the paid plan in this case
Hallo Sir, I have a question about Scalable Capital please? 1) Which one is good Accumulating or Distributing? 2) Do we have to wait for the price drop in Savings plan. Thank you
Accumulating ETFs reinvest the Dividends automatically and the Distributing ETS give out ETFs, so it depends on what you want to do. For the Savings plan, I follow the dollar cost averaging method where I set up a plan and buy at consistent intervals. This means I buy at high prices and low prices.
Do I need any tax number or something to invest? As I will move to Germany in February for an internship. Right now, I am Spain and have lived for 1 year in France. Therefore, I have study permit of both of these countries. I will also apply for German permit after moving there. Could you please guide what is best roadmap for me. I want to start investing as soon as possible. Also, at this moment I don't know in which country I would get the job. So which country should I select as my tax residence?
Well Scalable Capital is available in Germany, France and Spain so you can use it in all three countries. You would need the tax details of the country which you reside in at the time of Registration with SC.
@@ahsanfinance but would that be okay I open my account based on tax details of France. However, what will happen if I want to stay in Germany? Will I be able to change my tax details?
Do you recommend this ETF for long term saving plans in 2025? iShares S&P 500 Information Technology Sector UCITS ... US large cap growth ETF Can you recommend good ETFs for long term saving plans
🌱 Sign up for Free: ahsanfinance.com/scalablecapital
Are you in Berlin ?
A couple of things for beginners. 1: You need to pay 25% capital gains tax on profit if you withdraw with profit. 2: The customer service of Scalable capital is really poor (can´t use the word that I wanted to). When you ask them for huge withdraws or ask them some specific financial docs, they take forever, telling from a personal experience.
Yes its essential to know that you have to pay 25% (+soli) on profits above 1000Euro per year (2000Euro for married couples).
Which other brokers have lesser tax on capital gains ? Please send me a list
@@rahulnarayan6892the are all the same percentage, the thing that can make a difference is the country you are paying the tax to. In Germany itz 25%
nice, Ma Sha Allah man. What made you buy bayer though lol.
Well I thought it would turn around but it didn't 😥
Hey Ahsan, great video - very helpful espescially for an expat in germany. Would love to see a video regarding taxation in germany - maybe a bit in detail. Also, question: acc or dist is better in the long term based on the taxation system in germany?
I have a video on that topic in 2 weeks so make sure you have turned Notifications on. Acc and Dist are quite similar in terms of Taxation. For dist. you are taxed directly when a distribution is given and a small portion is taxed at the starting of the year. For Acc. the tax is cut at the starting of the year. In terms of overall growth, Acc. ETFs have a higher growth rate as ther dividends are auto re-invested.
Hey Ashan, great video. However, I am little bit curious why you bought bayer, Exon etc shares instead of big tech like Apple, Nvidia etc. And would love you to see more video about crypto..
Well this portfolio was originally started as a Dividend portfolio with companies that I was following. And an ETF focused on the IT sector along with Crypto Investing. Now the portfolio has some investments that have little to do with Dividends like Microsoft and Apple. So its not an actual dividend portfolio anymore. More details in my video today :)
Thank you for your informative videos ? What do you think of using Lightyear compared to Scalable while living in Germany.
I havent used Lightyear so I can really compare it with Scalable Capital
Hi! I realised that they are a lot of S&P500 with different prices. How do i choose
The main thing is the TER = Total Expense Ratio . It should be the lowest one
@@ahsanfinance thank you
Regarding the taxes on foreign investment. Does that mean that the dividends from an ETF on S&P will be taxed differently than divdax when profit below 1k yearly?
Thanks for all the videos!
Amazing journey! I have been following you for quite some time now. I am wondering how are you managing your Vorabpauschale that you have to pay towards the Finanzamt? Maybe you can explain that in some other video?
Thanks for the kind words. May I ask what do you mean by manage the Vorabpauschale?
@@ahsanfinance How does the Vorabpauschale gets deducted from one's account? I believe we have to pay the Vorabpauschale via the Scalable capital depot Konto (here from Bader bank) but so far I havent seen this getting deducted from my depot account. Maybe you can explain this process?
I will make a detailed video on it soon. In the mean time you can read a short summary which I created as a community post. You can head over there to see it: www.youtube.com/@ahsanfinance/community
Scalable does it for you
Thanks so much please can you do video of how to invest in crypto as a new beginner
This video can help: ua-cam.com/video/cb0s94bs9eY/v-deo.html
hey Ahsan what do you mean by savings plan? what if we do not generate savings Plan? IS Savings Plan Beneficial?
THere are 3 types in Bitcoin, in which have you invested?
Savings plan is just an automation tool. You can set it up, modify it or delete it within seconds.
Regarding BTC, I have the Coinshare Physical BTC
This is a well detailed video and what a lovely portfolio
Thanks , glad you liked the video
Hi Ahsan, great video! Thank you for creating this type of content. I used to invest when I was living in the USA, we just moved to Germany and I want to start investing here. In the USA the 20% capital gains tax goes down to 10% if you wait for more than one year before your realize them (it becomes long term capital gains). Is there something like this in Germany? Thanks
Glad you liked the video. Since 2009 there is no long term capital gains tax in Germany. Its a flat 25% (+soli+church tax) on Capital Gains. If you havent found out already, let me share the bad news with you that most German brokers do not accept US citizens accounts due to IRS regulations. So here you would either have to still use US brokers or International brokers that are present in the US and Germany.
@@ahsanfinance thank you for responding! I’m a Mexican citizen and don’t hold a US passport. Hopefully this does not apply to me?
Ok, then it shouldn't be an issue 😃
how can i create security transfer, ? this is my first time of investing
This option is for people who want to transfer their account to Scalable Capital. If you have completed your video identification then you do not need to do anything else. Your account will open in the next few days
Hi Ashan, great content, thank you making it so easy to understand.
I have two questions for you,
1. Are the ETF and stocks you are investing grow with compound interest (reinvestment of profits). If yes then what is the compounding period?
2. Is there any index fund (not ETF) to invest from Europe?
Glad you liked the video, for your first question there is nothing fixed with investing in stocks and ETFs. The term compounding period is used based on historical data. For example the stock market gave a return of average 7% in the past 20 years. So years it was high some it was negative. The investment period itself is not fixed, you can buy and hold for a minute or years.
Regarding EU index funds, you can look into dax30 to follow the German Dax index, the FTSE 100 for the UK market. And MSCI also has EU market ETFs
Hey brother,
Well done.
Can you transfer money into your account from other sepa member countries bank accounts?
Or only the bank account that you sign up to with?
You can only transfer via your Reference account. You can change the Reference account but only one can be added at a given time
Hallo
How I can terminate my complete portfolio and how to get the complete amount on my Giro account?
If you have multiple positions, you will have to close them by selling each one completely. Then you will see all the funds in the cash section. From there you can use the payment button and pay out to transfer the funds to your Girokonto
Amazing video bro,a doubt as a beginner,Should i invest in mutual funds and sip’s in India for example if i want to start with a worth of 500 euros per month, or should i invest in Germany etfs and stock market
Well i am not exactly aware of the Indian market so I can't really comment on that. But if you want to take advantage of the yearly 1000€ tax free limit, then you should look into investing in Germany.
Hi ahsan bhai,
great video , can I know apart from the auto tax deduction from scalable capital do we expect any further deduction from finanzesamt when filing tax return?
also is the flat 25% tax ded applied on unlimited trading per annum?
Generally you should not expect anything additional as a deduction. Yes its a flat (25%+Solidarity surcharge + Church tax if applicable).
@@ahsanfinance so what value should I put in *tax exemption* field inside the Scalable capital app ?
for a single person
As a single you have a maximum of €1000 across all investing apps. So if you only use SC then add €1000 . But remember this €1000 includes the tax free limit for all capital gains per year, including interest earned from banks.
do we have to pay taxes if we dont realise profit ? - i mean if money + compund dividends stay at ETF's for example 10 years
Yes and no. So there is something called the "vorabpauschale" or the "Advance Flat Rate Tax" on unrealized gains on ETFs. This tax previously negligible due to the extremely low interest rates. I wrote a post on it if you want to calculate the advance tax : ua-cam.com/users/postUgkxKRrSUObvoXU9Bc4Sw4ZCXaOMlFiyE-_j
I want to know why Novartis AG bonds are not showing in Scalable capital
Seems that they don't have it
Very silly question, but is it simple to withdraw funds? Like the profit?
Yes, its quite simple to withdraw your Money
But you have to wait 8 weeks if u were investing using a savings plan!!
@@alwinalexander8708 oh okay. Thank you
Hi Ahsan, I have 2 questions
I have already made an account on eToro before coming to Germany. Should I create a new account on Scalable or keep using eToro?
and how can I deposit funds in my eToro account? I am trying to add funds first time from my Germany and eToro is suggesting getting a Euro account, can you share your insights about it as well.
I do not recommend using eToro anymore. I like Scalable Capital and Trade Republic because they are regulated in Germany and do your taxes for you. As far as eToro is concerned, I think you will need to provide your German details and they might convert your account to a German one.
Which is the best option trading apps for index trading
What frequency would you be trading ? Day trading or swing?
@@ahsanfinance day trading in banchmark index of cac40 ftse100 , etc
you can look into : ahsanfinance.com/freedom24
Option trading on stock index not available how to activate
Does investing while you are still a student affects at the time of applying for resident permit ?
Investing has nothing to do with the Residence Permit
Hi, i had a small query if you dont mind responding will be greatfull.😊
Due to some events i couldn't continue regular investment in My ETF (ishares core MSCI world ACC ) started in oct 2021 and couldn't invest further from 2023 onwards! Total value 3k invested. It has great growth but i am not sure if i can resume investing again does it effect in anyway ?
There should be no problem with resuming your investments.
Can i invest in gold in scalable capital ?
You can invest in Gold Miners / companies related with the Gold industry but not in Gold directly
@@ahsanfinance thank you for your reply. but in which platform, can I invest in EFT gold or commodity?
Hi Ahsan, as usual thanks for making such an information video.
Can you also please make some videos about the taxation part of ETF investments and also pro and cons of ACC vs Distributing stock, in Germany, please. Thanks in Advance.
Glad you liked the video. I have covered these topics in Individual videos but will try to put all of them in a single video soon
Hi Ahsan: great contenct, thank you for being so transparent! Mind sharing why you only have one ETF? How did you make that decision? Thank you!
I tried investing in various ETFs, for example : S&P500, MSCI world, MSCI emerging markets but I personally found that I follow IT companies regularly due to my Job. So it makes more sense for me to invest in such companies.
Its better to use the monthly investing plan or transfer the money from bank account to scalable capital and then buy/invest in deferent assets?
Depends on your investment strategy. I use both i.e. use Savings plans and buy at random intervals too
Why would you keep crypto on a custodial app !!!
Well its a crypto ETP/ETF which is tradable on the Stock Exchange and not regular crypto
So when it goes to negative you lose the money that you profited and it is on you account already? Please Respond. Thanks in advance.
I didnt quite understand what you mean. But your loss or gain is only realized when you sell the stock/ETF.
@@ahsanfinance nevermind Artificial Intelligence already told me
😅
Hi Ahsan, in Transactions, Is the Market valuation in single Sparplan ETF the price we invest? E.g. i invest in an etf 50€ as sparplan but on the Transaction Overview is like - 49.97€ . My guess is may be the price of the shares doesn't match with that 50€. I need your help please. Thank you Sir
You are correct it you cant buy with an absolute value of 50€ always which is fine.
I am a foreigner living in Germany, so I trade on IBKR and do I declare income tax?
If you are a resident of Germany (not on a tourist visa or short term visa) then yes you have to declare your income in Germany.
trade republic aur scalable stock day trading kliye be use kr skty hain ya investment kliye
Yes you can use those platforms for trading
@@ahsanfinance sir which one is user friendly and best for day trading
Trade Republic has a good user interface
Hi ahsan, if I invest 100€ as saving plan in S&P 500 ETF for 1 year and then sell it, i invested around (100×12)= 1200€ in one year. So what is the interest or profit which I will get after selling it after 1 year? And do they pay dividents monthly as well?
Well there is no guarantee with investing in the stock market. We can only speculate based on the historical performance. The Sp500 has an average return of 7% . Some years this can be negative and some years its more than 10%
As far as dividends are concerned, there are ETFs that pay dividends some dont.
@@ahsanfinance thanks for your reply. So 7% interest will be paid out annually or it will be paid when I sell out the whole investment?
No this is not a fixed number and this is also an unrealized growth or loss in the value of your investments. Please watch this video for further details : ua-cam.com/video/8Mt2YEzq-1A/v-deo.html
I just wanted to thank you for your efforts on this channel. As an immigrant to Germany you’ve given me the confidence and the tools I need to start investing👍
I am happy that you have started your investing Journey!
@Ahsan Finance: could you please advise 1 or 2 best Dividend yielding ETFs that i can select to start as a beginner. Do u advise Germany based Dividend ETFs?? I have already 2 Accumulating ETfs in my portfolio.
Look into DivDax, its a good German dividend ETF. I have a video next monday on this topic
The most popular ETFs use USD. How does this affect us when we use EUR?
Yes but most of the ETFs following an Index are domiciled in the EU and use Euro so no currency conversion takes place when you invest
If cost of 1 stock is around 150 euro . Is it possible to invest 100 euro ?
Yes you can do so with the help of a savings plan
So, If I keep on investing 500Eur per Month, how long will it take to earn monthly that can pay my monthly living expenses?
Thats a very difficult question to answer.
Assuming 7% growth per year in 20 years you should have: €245,972.95 . Would it be enough? Only you can answer
A quick question, what do you do so that you're capable of investing a huge amount every month? What is your yearly income as living in Germany is highly costly.
I am a researcher with 6 years of work experience in Germany
How much do you invest every month ? I just wanted to know a rouge amount ?
Thanks for sharing your portfolio. Can you please address a couple of questions:
- Can I move my portfolio from Germany to UAE, what are my options?
- I read somewhere that SC applies 25% on the annual profit. Does that mean that if I am earning 100 euros on my portfolio then I get 75 euros in cash in that year?
- If I have a multiple stocks (5+), cryptos, ETFs under savings plan than I believe it will be around 10+ transactions from my current bank account to SC. Is it a nice idea to have a free SC plan or should I upgrade my plan with SC?
Glad you liked the video.
1. You have to check with the UAE Broker you want to move to, if they accept Securities account transfer. There is no restriction from Scalable Capitals side.
2. There is a tax on ETFs , did you mean that or something else?
3. As long as the purchases are through a savings plan, all of them would be executed free of charge. So I don't see a need for the paid plan in this case
@@ahsanfinance Thank you Ahsan! Jazakallah!
Glad to help
Hallo Sir, I have a question about Scalable Capital please?
1) Which one is good Accumulating or Distributing?
2) Do we have to wait for the price drop in Savings plan.
Thank you
Accumulating ETFs reinvest the Dividends automatically and the Distributing ETS give out ETFs, so it depends on what you want to do. For the Savings plan, I follow the dollar cost averaging method where I set up a plan and buy at consistent intervals. This means I buy at high prices and low prices.
Do I need any tax number or something to invest? As I will move to Germany in February for an internship. Right now, I am Spain and have lived for 1 year in France. Therefore, I have study permit of both of these countries. I will also apply for German permit after moving there. Could you please guide what is best roadmap for me. I want to start investing as soon as possible.
Also, at this moment I don't know in which country I would get the job. So which country should I select as my tax residence?
Well Scalable Capital is available in Germany, France and Spain so you can use it in all three countries. You would need the tax details of the country which you reside in at the time of Registration with SC.
@@ahsanfinance but would that be okay I open my account based on tax details of France. However, what will happen if I want to stay in Germany? Will I be able to change my tax details?
Do you recommend this ETF for long term saving plans in 2025?
iShares S&P 500 Information Technology Sector UCITS ...
US large cap growth ETF
Can you recommend good ETFs for long term saving plans
Perhaps this video can help: ua-cam.com/video/x1sKxTg8lJ0/v-deo.html
Is it halal?
You have to do some research into the stocks you are investing in, whether they are halal or not.
I saw that savings plan in trade public gives some interest, is that interest halal?
Savings plans do not give Interests they give dividends which is halal as long as the companies in the ETF are halal
Have a look at this video: ua-cam.com/video/K97q1jdPx9w/v-deo.html
nice (y)
Glad you liked the video
🫡🫡🫡