Brokerage and index fund strategy for Germany

Hi - My husband and I are Swiss residents and we are selling some property in Germany which has been in the family for almost 50 years. We want to leave the proceeds in Germany and invest it into some index funds and more or less forget about it although we would like to drawn down dividends each year for my in-laws. Can anybody suggest the best discount brokerage in Germany to set up an account? We use IB in Switzerland and I think they are in Germany but not sure if they’re a main player. Secondly, could somebody advise on the best index fund strategy? Would it still be to buy either US or European vanguard funds such as VTI or VWRL? many thanks

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Hi there. Could you clarify what you mean with “leave the proceeds in Germany”. Would the account be in your name or your in-laws or somebody else?

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Also, what country will the owners of the index funds (you / your family) be tax residents of (Switzerland / Germany)?

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Quite sure we will put in my in-laws name (might be better for taxes) but this is / will ultimately be an inheritance which we could take now but we won’t. Therefore German residents. thanks

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With regards to broker- Interactive Brokers also available in Germany. Probably the cheapest there as well.

With regards to leaving the assets in Germany. In Germany you’d pay 26.375% on all capital gains and divs. Would be less in CH if you could already execute the inheritance. But of course first, you’d need to check inheritance tax implications.

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No this is not the case

With ETFs you also pay those 26.4% on 70% of your capital gains not on 100% and you get 801€ or 1602€ of free capital gains each year.

If you are an EU citizen, Finanzfluss might be your best bet for financial education.

As for Brokers:
Scalable Capital and Trade republic re the cheapest option for Germans. Transaction cost you like 1€ max… And “Sparpläne” are free.
If you are looking for a Krypto Sparplan, Bison is your way to go

Don’t worry about this whole US-ETF thing, since it is neither really advantageous nor practical to get them inside the EU. Go with IE UCITS ETFs

If you have further questions, I’d love to provide info!

You also want to decide whether to get the Distributing or Accumulating (Thesaurierend) variant of the ETF, depending on which Variant is more tax-advantageous in Germany.

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