Best Investment Plan Options for Expats in Germany | 2026

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Best Investment Options in Germany for Expats

Germany offers many ways to save and invest money, from simple savings accounts to ETFs, stocks, broker accounts, pension products, real estate, and crypto. For expats, the best investment option depends not only on return potential, but also on taxes, fees, risk, currency, account type, and whether you may leave Germany later.

If you are new to Germany, it is usually best to start with the basics: build an emergency fund, understand your tax situation, open the right bank or broker account, and only then choose investments based on your time horizon.

This guide explains how to invest money in Germany as an expat, including short-term investments, long-term investments, German investment accounts, broker accounts, Junior Depots, ETF savings plans, taxes, and common mistakes to avoid.

Investment Options in Germany Compared

Types of Investment Accounts in Germany

Investing in Germany is not only about choosing between ETFs, stocks, savings accounts, or real estate. You also need the right account type. Some accounts are used for buying securities, some for children, some for automated investing, and others for retirement or short-term savings.

For expats, this can be confusing because German investment products often use terms such as Depot, Junior Depot, Sparplan, Tagesgeld, Festgeld, Bausparvertrag, and betriebliche Altersvorsorge.

Broker Account / Depot

A German broker bank account, called a Depot in Germany, is the main account used to buy and hold securities. If you want to invest in ETFs, stocks, bonds, mutual funds, or other securities, you usually need a Depot.

A German broker account can be useful because many German brokers handle German investment tax automatically. This can make tax reporting easier than using a foreign broker.

When comparing broker accounts, check:

• Order fees.
• ETF savings plan fees.
• Account maintenance fees.
• Available ETFs, funds, stocks, and exchanges.
• English support.
• Tax handling.
• Account opening requirements.
• Whether you can keep the account if you leave Germany.

ETF Savings Plan / ETF-Sparplan

An ETF savings plan, or ETF-Sparplan, lets you invest a fixed amount into an ETF regularly. Many investors use monthly ETF savings plans to build wealth over time.

An ETF savings plan can be useful if you:

• Want to invest monthly.
• Prefer a long-term approach.
• Want diversification through ETFs.
• Do not want to buy individual stocks.
• Want to start with smaller amounts.

Before starting, check the ETF selection, savings plan fees, minimum monthly contribution, tax handling, and whether the broker supports your documents and residence situation.

Junior Depot / Kinderdepot

A Junior Depot, also called a Kinderdepot, is a broker account opened in a child’s name. Parents usually manage the account until the child becomes an adult.

A junior depot account can be used to invest in ETFs, funds, and sometimes individual shares for a child’s long-term future. It can be useful for families who want to save for education, future housing costs, or general wealth building.

A Junior Depot may be useful if you:

• Have children in Germany.
• Want to invest long term for your child.
• Prefer ETFs or funds instead of a traditional savings account.
• Understand that the money belongs to the child.
• Can provide the required documents for both parents and child.

Before opening a Junior Depot, compare account fees, ETF savings plan options, required documents, tax treatment, custody rules, and whether the provider accepts your family’s residence situation.

Robo-Advisor Account

A robo-advisor is a digital investment service that creates and manages a portfolio for you. Instead of choosing ETFs or funds yourself, you answer questions about your goals and risk tolerance, and the robo-advisor invests according to that profile.

Robo-advisors can be useful for expats who want to invest but do not want to manage a portfolio themselves.

A robo-advisor may be useful if you:

• Want a hands-off investment approach.
• Do not want to choose ETFs yourself.
• Prefer automated portfolio management.
• Are comfortable paying extra fees for convenience.

The main downside is cost. Robo-advisors usually charge management fees on top of fund fees. Before signing up, compare total costs, investment strategy, tax handling, risk levels, and whether you can keep the account if you leave Germany.

Digital Wealth Management

Digital wealth management is similar to a robo-advisor, but it may include more tailored portfolio management, higher minimum deposits, or broader investment strategies.

This type of account may be relevant for expats with larger portfolios who want professional management without using a traditional private bank.

Before choosing digital wealth management, check:

• Minimum investment amount.
• Management fees.
• Underlying fund costs.
• Investment strategy.
• Risk profile.
• Tax reporting.
• Exit rules.

Tagesgeld Account

A Tagesgeldkonto is an instant-access German savings bank account. It is not an investment account in the same way as a broker account, but it is still one of the most important places to keep short-term money in Germany.

A Tagesgeld account is useful for emergency savings, moving costs, apartment deposits, upcoming tax payments, or money you may need within the next year.

The main advantage is flexibility. The main disadvantage is that interest rates can change over time.

Festgeld Account

A Festgeldkonto is a fixed-term savings account. You lock money away for a set period and usually receive a fixed interest rate.

Festgeld can be useful for money you do not need immediately, but it is less flexible than Tagesgeld. If you may need the money soon, a fixed-term account may not be the right choice.

Private Pension Account

Private pension products are used for retirement planning. These can include private pension insurance products and long-term investment-based pension contracts.

Before choosing a private pension product, check:

• Whether the contract is portable if you leave Germany.
• Total fees.
• Contribution flexibility.
• Tax treatment.
• Cancellation rules.
• Payout rules.
• Whether the product still makes sense if you retire outside Germany.

Company Pension / Betriebliche Altersvorsorge

A company pension, or betriebliche Altersvorsorge, is an occupational pension arranged through your employer. It can be useful for employees, especially if the employer contributes additional money.

For expats, the main questions are portability and long-term value. If you may leave Germany, check what happens to the pension, when you can access it, how it is taxed, and whether it remains worthwhile if you stop working for that employer.

Building Savings Contract / Bausparvertrag

A Bausparvertrag is a building savings contract often used by people planning to buy or renovate property. It combines a savings phase with the possibility of a future loan under defined conditions.

This product is more niche and is usually only relevant if you plan to buy property in Germany or want a specific property financing strategy.

Expats should be careful before signing a Bausparvertrag because it can be less useful if you leave Germany, do not buy property, or need flexibility.

Crypto Account or Wallet

Crypto investing usually happens through a crypto exchange, broker, or wallet. This is different from a normal German broker account, although some brokers also offer crypto products.

A crypto account may be relevant only if you understand the risks and can handle the tax documentation.

How to Invest Money in Germany

Before choosing an investment, decide what the money is for. Money you need soon should usually be kept safer and more accessible. Money you do not need for many years can usually take more risk.

A simple investing setup in Germany may look like this:

1. Build an emergency fund: Keep enough money available for unexpected expenses.
2. Separate short-term and long-term money: Do not invest money you may need soon in volatile assets.
3. Open a German bank account: This helps with transfers, direct debits, German credit cards, and linking to brokers.
4. Get your German tax ID: Banks and brokers may need it for tax reporting.
5. Choose the right investment account: This could be a broker account, ETF savings plan, Junior Depot, robo-advisor, savings account, or pension product.
6. Set up your saver’s allowance: Use a Freistellungsauftrag where applicable.
7. Start with a regular plan: Many expats begin with monthly ETF investments or automated savings.
8. Review your plan regularly: Adjust if your income, tax residency, family situation, or plans to stay in Germany change.

Investment Taxes in Germany

Investment taxes are one of the most important topics for expats investing in Germany. Tax rules can affect your returns, your reporting obligations, and your choice of broker.

In Germany, common investment income can include:

• Interest.
• Dividends.
• Capital gains.
• Fund distributions.
• Taxable gains from selling securities.

Capital Gains Tax in Germany

Investment income in Germany is generally subject to capital gains tax, known as Abgeltungsteuer. Additional charges, such as the solidarity surcharge and church tax if applicable, may also apply. Reference the German capital gains tax calculator for individual rates.

Saver’s Allowance

Germany has an annual saver’s allowance called the Sparer-Pauschbetrag. This allows a certain amount of investment income to be tax-free if set up correctly.

To use this allowance with a German bank or broker, you usually submit a Freistellungsauftrag, or exemption order.

Freistellungsauftrag

A Freistellungsauftrag tells your German bank or broker to apply your saver’s allowance before withholding tax.

If you have accounts with multiple banks or brokers, you can split the allowance between them. Do not allocate more than your total available allowance across all providers.

Using a Foreign Broker While Living in Germany

Some expats continue using a broker from their home country after moving to Germany. This can be possible, but it may create tax reporting issues.

Before using a foreign broker, check:

• Whether the broker accepts German tax residents.
• Whether it provides tax documents you can use in Germany.
• Whether you must report income manually.
• Whether currency conversion creates extra complexity.
• Whether there are exit or account restrictions if your residence changes.

Junior Depot Taxes

A Junior Depot can have separate tax considerations because the account belongs to the child. Children in Germany can have their own tax allowances, but families should check how investment income, health insurance, family benefits, and tax forms interact.

Before opening a Junior Depot, check whether you need a Freistellungsauftrag for the child, whether a non-assessment certificate may be useful, and whether investment income could affect other family-related rules.

Opening an Investment Account in Germany

To buy ETFs, stocks, funds, or other securities, you usually need a broker account, also called a Depot in Germany.

A broker account can be opened with:

• Online brokers.
• Direct banks.
• Traditional banks.
• Robo-advisors.
• Some digital banks.

When comparing broker accounts, check:

• Order fees.
• ETF savings plan fees.
• Account maintenance fees.
• Available ETFs and funds.
• English support.
• Tax handling.
• Account opening requirements.
• Whether you can keep the account if you leave Germany.

Eligibility for Foreigners to Invest in Germany

Foreigners can generally invest in Germany if they meet the requirements of the bank, broker, or investment provider. You may need proof of identity, address, tax ID, and sometimes a German bank account.

The more important question is not whether you can invest, but which investment setup makes sense for your residence situation.

Foreigners and expats should consider:

• German tax residency.
• Investment taxes in Germany.
• Tax obligations in their home country.
• Currency risk.
• Whether they may leave Germany.
• Whether accounts can remain open after moving abroad.
• Whether long-term products are flexible enough.

Common Investing Mistakes Expats Make in Germany

Investing in Germany is not difficult, but expats can run into problems when they copy advice from another country without checking German rules.

• Investing before building an emergency fund: Short-term money should usually stay accessible.
• Choosing the wrong account type: A broker account, Junior Depot, savings account, pension, and crypto wallet all serve different purposes.
• Ignoring German tax rules: Investment income may need to be taxed or reported in Germany.
• Using a foreign broker without tax documents: This can make your tax return more complicated.
• Opening a Junior Depot without understanding ownership: Money in a Junior Depot belongs to the child, not the parents.
• Choosing long-term pension products too early: Some products are not flexible if you leave Germany.
• Holding too much cash long term: Savings accounts are useful, but inflation can reduce purchasing power over time.
• Taking too much risk with short-term money: Money needed soon should not usually be invested in volatile assets.
• Not setting up the saver’s allowance: A Freistellungsauftrag can prevent unnecessary tax withholding at German banks and brokers.
• Confusing trading with investing: Frequent trading can increase risk, fees, and tax complexity.

Conclusion

The best investment option in Germany depends on your timeline, risk tolerance, tax situation, account type, and long-term plans. Expats should be especially careful with portability, foreign brokers, tax reporting, Junior Depots, and products that are difficult to cancel after leaving Germany.

A simple approach is often best: keep short-term money safe, use flexible savings accounts for emergency funds, and consider diversified long-term investments such as ETFs only when you can leave the money invested for several years.

For many expats, the most practical setup is a German current bank account for everyday banking, a savings account for emergency money, a broker account or ETF savings plan for long-term investing, and specialized accounts such as a Junior Depot, pension, or business-related account only when they fit your situation.

Frequently Asked Questions