Taxes
German FIFO on a partial disposal: which lot counts
The oldest tranche goes first — mandatory, not a choice. What that costs, and why the queue is kept per account.
Published · By The Acutic Research Team
Anyone who has fed the same ETF for years does not own a position but a stack. Dispose of part of it and a question arises that decides the tax bill — and that, in Germany, nobody is allowed to answer: which units were they?
The statute answers it
§ 20 (4) sentence 1 EStG defines the gain as disposal proceeds less costs in direct factual connection with the disposal, less acquisition cost. Sentence 7 fixes which acquisition cost that is:
“Bei vertretbaren Wertpapieren, die einem Verwahrer zur Sammelverwahrung im Sinne des § 5 des Depotgesetzes … anvertraut worden sind, ist zu unterstellen, dass die zuerst angeschafften Wertpapiere zuerst veräußert wurden.” — § 20 (4) sentence 7 EStG
Zu unterstellen — to be presumed, not to be chosen. Unlike the United States, where specific lots can be identified, the order here is mandatory. It is not a setting in online banking and cannot be corrected afterwards.
What it costs
Five tranches of 100 units, acquired over five years at between €40 and €95. 150 units are disposed of at €100.
The queue eats from the top: all of the 2021-01 tranche and 50 units from 2022-07. The three newer tranches are untouched — including 2026-02 at €95, which would arithmetically have produced the smallest gain.
| Method | Gain | After exemption | Tax |
|---|---|---|---|
| FIFO (what the law applies) | 8,000 € | 5,600 € | 1,477.00 € |
| LIFO (not available) | 1,500 € | 1,050 € | 276.94 € |
| Average cost (not available) | 5,250 € | 3,675 € | 969.28 € |
The same transaction: 150 units at €100. Accumulating equity fund with 30% partial exemption, 26.375%, no church tax, no allowance. LIFO and average cost are not available in Germany — they are here only to show what the attribution is worth.
The spread is the finding: between the attribution the law imposes and the arithmetically cheapest one sits €1,200.06 of tax on one and the same transaction. None of it is available to structure — but knowing the number means the statement holds no surprise.
The detail almost everyone omits
FIFO applies per Depot, not per person, and a sub-account counts as its own. The same ISIN in two accounts forms two independent queues, so which units count as disposed depends on which account the disposal happens in.
That this property invites thoughts about deliberate partial transfers is obvious, and it does get discussed. The tax treatment of a transfer made specifically for that purpose is contested, however — a question for a Steuerberater. What matters here is the uncontested part: where a position sits affects which acquisition cost is applied on a partial disposal.
What can happen to the acquisition data during a transfer is covered in the 30 % fallback trap: if it goes missing, the tranche question is moot, because the substitute base applies instead.
Savings plans build long queues
Every savings-plan execution is its own acquisition joining the back of the queue. After a few years a position consists of dozens of small tranches, and a partial disposal takes the oldest first — in a market that has risen over those years, typically the cheapest, carrying the largest gain.
How the resulting gain nets against losses and the allowance is in the two loss pots and the Sparer-Pauschbetrag. For fund units the Teilfreistellung applies on top, and is already reflected in the table above.
Investors holding positions across several institutions rarely see the tranche picture in one place. The Acutic workspace brings positions together without connecting to a bank, with the approach on the methodology page. It is not a substitute for a tax computation.
Frequently asked questions
Can I choose which lot is disposed of?
No. § 20 (4) sentence 7 EStG presumes, for fungible securities in collective custody, that the units acquired first are disposed of first. There is no specific-lot identification as in the United States — the order is statute, not a setting in your account.
Does FIFO run across all my accounts?
No, and this is the part most explanations omit: FIFO is applied per Depot, and a sub-account counts as its own. The same ISIN in two accounts forms two independent queues, so which units count as disposed depends on which account the disposal happens in.
Can a partial transfer change the order?
The per-Depot rule makes the idea obvious enough that it gets discussed. The tax treatment of a transfer made deliberately for that purpose is contested, however. That is a question for a Steuerberater, not for a blog post.
What about savings-plan instalments?
Each execution is its own acquisition with its own date and price, joining the back of the queue. After a few years a position consists of a great many small tranches — and on a partial disposal the oldest, which in a risen market are usually the cheapest, go first.
Where can I see my tranches?
Usually in the bank’s portfolio view under the position, often labelled Bestandsaufteilung, Tranchen or Einstandskurse. If cost data is missing there, treat it as a warning sign: the substitute tax base may apply at the eventual disposal.
This article is general information, not tax advice within the meaning of German law. For your own situation, consult a Steuerberater:in. Legal position: October 2026.
Further reading: The Vorabpauschale explained, accumulating vs. distributing and the Vorabpauschale calculator. Create free account.
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