A German tax resident earning interest from a foreign P2P lending platform must declare that income in Anlage KAP because foreign platforms do not withhold Kapitalertragsteuer the way a German bank does. The investor calculates taxable interest, applies the annual tax-free allowance, and reports it separately, without automatic withholding at source.
How to declare foreign P2P interest in Germany: Anlage KAP
A German tax resident earning interest from a foreign P2P lending platform must declare that income in Anlage KAP because foreign platforms do not withhold Kapitalertragsteuer the way a German bank does. The investor calculates taxable interest, applies the annual tax-free allowance, and reports it separately, without automatic withholding at source.
This is not tax advice; the applicable regime depends on individual residency status and personal circumstances. This article refers to the 2025 German assessment period and official guidance checked on 24 September 2026. Always verify the current Anlage KAP instructions, BMF and BZSt guidance for the year you are filing.
Why Foreign P2P Interest Isn't Withheld Automatically in Germany
A German bank normally acts as the withholding agent for relevant domestic capital income. A foreign P2P platform does not automatically occupy that role, so interest can reach the investor without German tax having been withheld.
The absence of withholding does not make the interest non-taxable. Instead, the investor has to classify the income and include it in the annual assessment under the rules that apply to capital income.
Maclear is an example of a Swiss foreign platform in this context. It is not a German tax adviser or withholding agent. Maclear is a member of PolyReg SRO and operates under Swiss financial regulations.
Do I Have to Declare Interest From a Foreign P2P Platform?
Yes. Interest from a foreign P2P platform must be considered for declaration regardless of the amount received or the platform's jurisdiction, subject to the rules that apply to the investor's individual tax position.
Where the interest has not been subject to German withholding, it has to be included in the annual tax process under the current rules for capital income. Whether tax is ultimately payable also depends on the investor's overall circumstances, including the Sparer-Pauschbetrag.
What Happens If the P2P Platform Doesn't Withhold Any Tax?
The calculation and declaration move to the investor. The platform statement becomes the starting record: interest has to be separated from returned principal and other movements before the relevant amount is entered in Anlage KAP.
Do not treat the account balance or every incoming payment as taxable interest. Principal repayment, a claim sale and a default-related write-off are different movements and may require different treatment.
What Counts as Taxable Income on a P2P Platform Statement?
A platform statement can contain both income and movements that only return or change the investor's capital position. Reading it line by line avoids treating every cash movement as taxable interest.
Movement on the platform statement | Taxable as interest income | Not taxable income | Note |
Interest payment | Yes | No | Treat as interest received for the relevant tax year |
Return of principal | No | Yes | Repayment of invested capital, not interest income |
Sale of a claim at a discount | Not automatically ordinary interest | Not automatically excluded | Borderline transaction; check the current Anlage KAP instructions and applicable guidance |
Write-off on a defaulted claim | No automatic classification | No automatic classification | Do not assume deductibility; verify current BMF/BZSt guidance |
The table is a classification aid rather than a substitute for the current form instructions. Anlage KAP wording, field descriptions and line numbers can change between assessment periods, so use the current Anleitung zur Anlage KAP instead of relying on a line number copied from a previous year.
Is the Return of My Principal Taxable?
No. Principal repayment returns capital previously invested; it is not interest earned on that capital.
This distinction matters when a statement combines several types of cash movement. Adding returned principal to interest would overstate investment income. Keep principal, interest, claim-sale transactions and default-related entries separate from the start of the annual reconciliation.
How to Fill Anlage KAP Step by Step With a Foreign Platform Statement
Work from the platform statement toward the tax form rather than starting with a total account balance.
Export the annual statement or CSV for the tax year and separate interest, principal repayments, claim sales and default-related movements.
Add the interest actually received during the reporting year. Use the date of payment rather than the date on which the original investment was made. This avoids assigning income to the wrong assessment period.
Enter the resulting foreign capital income in Anlage KAP using the field specified in the current instructions. Do not rely on a line number copied from an earlier version of the form.
If a payment was received in a currency other than euro, convert that payment using the Bundesbank exchange rate applicable to the date the income was received. Convert individual payments separately rather than translating one annual foreign-currency total using a year-end rate.
Reconcile the result with the Sparer-Pauschbetrag and the rest of the investor's capital income. Use the amount and application rules in force for the assessment period being filed.
For every non-euro payment, retain the original currency amount, payment date, rate used and converted euro amount. This creates a calculation that can be reproduced later instead of leaving only one unsupported annual figure.
The Sparer-Pauschbetrag is part of the broader capital-income calculation, but this article does not state its amount as a permanent figure because the current value should be checked for the relevant tax period.
How Default Losses on P2P Claims Are Treated for Tax Purposes
The tax treatment of a loss on a defaulted P2P claim should remain an open question in a general filing explainer.
German rules on losses from capital claims and their offsetting have developed over time, and treatment can depend on the legal character of the loss and the rules in force for the particular assessment period. A platform write-off should therefore not automatically be treated as a deductible amount.
A statement showing that a claim has been written off establishes an economic event. It does not, by itself, provide a ready-made tax answer.
Can I Deduct a Loss From a Defaulted Loan?
There is no generic answer that should be applied to every default. Keep the platform's default record, the underlying loan documentation and the statement entry, but do not automatically subtract the loss from interest income.
The correct treatment should be checked against the current BMF/BZSt guidance and the Anlage KAP instructions in force when the return is filed.
What Happens If You Don't Declare Foreign P2P Interest?
The absence of German withholding is not an exemption. If reportable foreign interest is omitted, the investor may have to correct the tax return and can face additional tax or other consequences under the applicable rules.
Germany also participates in international automatic exchange of financial-account information. That does not mean every individual P2P payment is automatically reported through the same mechanism, but foreign financial activity should not be assumed to sit outside the German tax authority's information environment.
Failing to declare foreign platform interest is a compliance risk regardless of platform jurisdiction, and how a default loss is treated for tax purposes is unsettled — verify both against current guidance from Bundeszentralamt für Steuern before filing.
Key takeaways
- Foreign P2P interest reaches a German investor without Kapitalertragsteuer having been withheld, but it remains reportable capital income.
- Interest, principal repayment, claim sales and default write-offs are separate movements on a platform statement and must not be totalled together.
- Interest is assigned to the assessment period in which it was paid, not the period in which the investment was made.
- Non-euro payments are converted payment by payment using the Bundesbank rate for the payment date, never with a single year-end rate.
- Deductibility of a default loss is not automatic; it depends on the rules and BMF/BZSt guidance in force for the assessment period.
Frequently Asked Questions
Do I have to declare interest from a foreign P2P platform in Germany?
Yes. Foreign P2P interest must be considered for declaration regardless of the amount received or the jurisdiction of the platform, subject to the rules that apply to the investor's personal tax position. Where no German withholding has taken place, use the current Anlage KAP instructions for the tax year being filed and check how the Sparer-Pauschbetrag affects your overall capital income.
Does a foreign P2P platform withhold German tax automatically?
Usually not. A German bank can act as a domestic withholding agent, while a foreign P2P platform generally does not deduct German Kapitalertragsteuer for the investor. Where no German withholding occurs, the investor has to identify the relevant income and report it through the annual tax process rather than assume that the foreign platform has settled the German tax position.
Is the repayment of my principal taxable?
No. Principal repayment is the return of money previously invested and is not interest income. It should be separated from interest before annual figures are transferred to Anlage KAP. A claim sale or a default-related movement may require separate analysis, so those entries should not simply be grouped together with ordinary repayments of invested principal.
Can I deduct a loss on a defaulted P2P loan?
There is no generic answer that should be applied to every default. Treatment depends on the rules and official guidance in force for the relevant assessment period and on the legal nature of the loss. Keep the supporting records and check current BMF/BZSt guidance before treating a platform write-off as a deductible capital loss.
What happens if I forget to declare foreign interest income?
An omitted amount can lead to additional tax being assessed and may require a correction of the return. Foreign financial activity can also fall within international information-exchange frameworks, although that does not mean every P2P payment is reported identically. Check the current correction procedure with the competent tax authority rather than informally adjusting figures in a later tax year.
This is not tax advice; the applicable regime depends on individual residency status and personal circumstances. The article reflects the 2025 assessment framework, checked on 24 September 2026. Before filing, verify the current Anlage KAP instructions and relevant BMF/BZSt guidance for your tax period.
Related articles
- Poland: who files what and when
- Portugal: Anexo J
- Italy: Quadro RW
- Automatic Exchange of Information: Does Your Tax Office Know?
About Maclear
Maclear AG is a Swiss-based P2P lending and crowdlending platform headquartered in Switzerland. The company operates as a financial intermediary in the non-banking sector and is a member of PolyReg SRO, in compliance with Swiss financial regulations including AML, KYC, and GDPR. Maclear offers retail and qualified investors access to vetted business loan opportunities, with built-in risk assessment, a Provision Fund, and a Secondary Market for liquidity.
The content of this article is provided for informational and educational purposes only. It does not constitute investment, financial, tax, or legal advice. P2P lending and crowdlending investments carry a risk of partial or total capital loss. Past performance is not indicative of future results. Liquidity on a secondary market is not guaranteed. Readers should conduct independent research and consult qualified advisors before making any financial decisions. Availability of products and services may be restricted in certain jurisdictions.