RSU tax in Germany: What you need to know

A restricted stock unit (RSU) is a type of employee compensation or benefits paid in company shares.

But there’s a catch: the shares only become yours after a ‘vesting’ period, at which point you can sell or reinvest them.¹

Germany RSU tax is typically triggered when the shares vest, not when they are granted. How much you owe depends on your salary, as well as where you lived and worked during the vesting period - not just simply where your employer or RSU plan is based.²

This comprehensive guide lays out how RSUs are taxed in Germany, from how much you can expect to pay, to just when the tax is due. We’ll also look at what internationally mobile employees should watch out for.

We’ll also show you a great solution for selling your RSUs in a different currency - the Wise account. It lets you hold and convert between 40+ currencies including Euros, for low fees* and mid-market exchange rates. Plus, you’ll get dedicated support and volume discounts when sending large amounts.

On a £50,000 transfer, you could save up to £1,000 with Wise vs your bank.

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How are RSUs taxed in Germany?

Germany typically taxes RSUs at two stages - but on two different things.

First of all, the market value on RSUs when they vest (not when you first receive them) is treated as ordinary employment income and taxed accordingly. If you later sell some of your shares, any increase in value is taxed as an investment gain.³

At vesting, higher earners in Germany might be liable for the solidarity surcharge (Solidaritätszuschlag), while members of tax-collecting religious communities may need to pay an additional church tax (Kirchensteuer).

When shares are eventually sold at a profit, Germany applies a flat-rate capital gains tax (Abgeltungsteuer) of 25 percent, plus any of the aforementioned surcharges which apply to you.

RSU tax at vesting in Germany

In Germany, RSUs are taxed as employment income at vesting, meaning they are subject to whatever your income tax rate is - up to 45 percent for very high earners, before surcharges.

The following are the rates you can expect to pay, broken down by income bracket.⁴

On top of income tax, a solidarity surcharge of 5.5 percent will kick in once your income exceeds roughly €75,000 per year, pushing the rate higher.

In practice, this means that if you earn €75,000 a year, an additional €1,000 in RSUs is taxed at Germany’s 42 percent marginal rate, plus the solidarity surcharge.⁵

If you’re a registered member of a religious institution, you’ll also pay church tax of 8 to 9 percent of the income tax owed on vesting. Employees who formally leave the institution (Kirchenaustritt) are no longer subject to the surcharge.⁶

While employers typically withhold tax at vesting, the final tax liability is only determined when your annual tax return is filed. This is particularly relevant for employees who moved countries or received RSUs through a foreign payroll.³

Germany RSU Tax-free exemptions

Since 2024, employees have been able to receive up to €2,000 per year in shares tax-free, provided the shares are granted under a qualifying all-employee participation plan.

This exemption reduces taxable employment income at the time the shares are received, but it applies only under strict conditions and usually doesn’t cover selective or executive RSU plans.⁷

For example, if a company grants shares worth €3,000 to all employees under an approved participation scheme, only €1,000 would be taxed as employment income after applying the €2,000 allowance.

By contrast, if the same €3,000 in RSUs is granted only to senior staff or as part of an executive incentive package, the exemption typically doesn’t apply, and the full amount will be taxable at vesting.

RSU tax when you sell shares in Germany

Once RSUs have vested and turned into actual shares, you might decide to sell them. If you do, Germany taxes only the gain made after vesting, not the value that was already taxed as salary.

For example, if your RSUs vest at €100 per share and you later sell them for €120, the taxable gain is €20 per share.

Breathe a sigh of relief: the €100 vesting value has already been taxed as employment income and won’t be taxed again.

Germany applies a flat-rate capital gains tax of 25 percent to this profit. In addition, a solidarity surcharge of 5.5 percent of the capital gains tax may apply, depending on your income level.⁸

Germany does not offer a reduced capital gains tax rate for holding shares longer. So they are taxed at this rate regardless if you sell them five hours after vesting, or five years.

Special considerations for international employees

Here are some important considerations:

Moving in or out of Germany during vesting

Changing countries does not automatically sever Germany’s right to tax RSUs.²

If you move away from Germany before RSUs vest, Germany can still tax the portion of the RSU corresponding to the time you lived and worked there.

Let’s say you have a RSU plan which vests after four years. If you worked in Berlin for the first two before moving to London, Germany can still tax half of the vesting value.

Conversely, if you worked in London for part of the vesting period and moved to Berlin later on, Germany will typically tax only the portion linked to work performed in Germany.

In most cases, double taxation is mitigated through bilateral tax treaties, though relief is not automatic and usually needs to be claimed through tax filings.

Working remotely for a foreign employer

If you live in Germany and work remotely for a foreign employer, your RSUs are still treated as German-sourced employment income. As a rule of thumb, Germany looks at where the work is physically performed, not where the employer or equity plan is based.

A foreign payroll or offshore equity platform does not, by itself, remove German tax obligations.

Currency conversion and FX costs

If you sell shares or receive RSU proceeds in euros and want to convert them into pounds (or vice versa), currency conversion costs may affect your overall returns. Some providers may apply exchange rates that differ from the mid-market rate and include FX margins, which can increase the total cost - in some cases by around 2–3% of the amount, particularly on larger sums.

Use Wise to save on unnecessary currency fees on your next share or RSU payout

After reading this, you should have a better idea of how tax on RSUs works in Germany - and how the country’s tax laws apply to you.

It’s also important to think about the best way to manage share profits, dividends and other investment income. This is particularly crucial for those with global investments, where you’re earning returns in multiple currencies.

Wise is a great solution, helping you manage your money in 40+ currencies including Euros (EUR) and convert between them whenever you need to.

Thanks to its low fees* and mid-market exchange rates, you could save on currency conversion fees. For an example of how it could benefit you, check out this guide to using Wise for RSU payouts in USD.

You can even get Wise account details in EUR, so you can receive EUR payments without paying any fees.

Ready to make new global investments? It’s easy to fund your portfolio using your Wise account - which lets you securely send money worldwide in just a few clicks.

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FAQs: RSU tax in Germany

When are RSUs taxed in Germany?

RSUs are taxed when they vest, not when they are granted or sold. The market value of the shares on the vesting date is then treated as employment income, meaning they’ll also be subject to German employment tax.

What tax rate applies to RSUs at vesting?

The value of vested RSUs is added to your taxable income and taxed at your marginal income tax rate, which increases progressively up to 45 percent for the highest earners. The solidarity surcharge - and church tax, where applicable - can further increase this rate.

Are social security contributions due when RSUs vest?

RSUs are treated like salary and, as such, can be subject to social security contributions. In practice, Germany applies strict annual contribution ceilings, and many higher earners reach these limits through their regular salary alone, meaning no additional social security is due on the RSU.²

Do you pay tax again when you sell vested RSU shares?

Yep, but only on gains made after vesting. Any increase in value above the amount already taxed as employment income is subject to capital gains tax under Germany’s flat rate system.

Can you get any tax relief on RSUs in Germany?

Since 2024, employees may benefit from a €2,000 annual tax-free allowance for qualifying all-employee share plans. The relief applies only under specific conditions and does not usually cover selective or executive RSU schemes.

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Sources used:

1. Wise - What are restricted stock units (RSU)?
2. Maravo International Tax Consulting - How are RSUs taxed in Germany?
3. One Money Way - RSUs (in German)
4. PWC - Germany Taxes on Personal Income
5. LohnSteuer Kompakt - What is the Solidarity Surcharge?
6. LohnSteuer Kompakt - How much is the church tax?
7. Global Equity Remix - RSU
8. Firma - Capital gains tax explained

Sources last checked on date: 11 February 2026.