The Federal Finance Court (BFH) made a landmark decision on April 8, 2025, regarding the tax deductibility of asset management fees. This decision is particularly relevant for private investors and savers, as it removes existing uncertainties.
Essential Content of the BFH Ruling
- Since the introduction of the flat-rate withholding tax in 2009, deductible expenses for capital income have been limited to the saver’s allowance: currently 1,000 euros for single individuals and 2,000 euros for jointly assessed partners.
- This limitation also includes asset manager and custody fees, even if they exceed the allowance.
- The BFH found that this restriction on deductions is constitutional and therefore remains valid.
- Investors can therefore only deduct expenses up to the amount of the saver’s allowance, despite high asset manager fees.
Significance for Investors
Private investors must keep in mind that the tax deductibility of asset management fees is limited. However, it is positive that the ruling provides legal clarity and removes constitutional doubts. Investors should adjust their strategy to optimally utilize the saver’s allowance.
Conclusion
The BFH ruling confirms the existing system for the deductibility of expenses for capital gains, taking into account the saver’s allowance, even in light of higher asset manager fees. It serves as a guideline and supports investors in adjusting their tax strategies accordingly.
This information is based on reports and expert assessments from May 2025.