Why a Freistellungsauftrag Doesn't Cover a Foreign Platform
This is not tax advice; the applicable regime depends on individual residency status and personal circumstances.
Why does a Freistellungsauftrag work with a German bank or broker?
The Freistellungsauftrag operates within German withholding. Your bank or broker uses the instruction to apply the available allowance before deducting tax from qualifying capital income.
The BZSt’s information on Freistellungsaufträge describes this connection with income exempted from deduction. What matters is participation in German withholding.
Can I give my Freistellungsauftrag to a foreign P2P platform?
Not where the platform does not act within the German withholding system. There is no German deduction for the instruction to reduce.
For a Freistellungsauftrag at a foreign bank, check whether the account uses a German withholding arrangement. A foreign-owned institution operating within that system differs from a foreign platform that leaves German reporting to the investor.
Does the Sparer-Pauschbetrag apply to foreign interest?
The Sparer-Pauschbetrag applies to qualifying capital income, including foreign interest. German tax on foreign interest therefore depends partly on how much of your allowance remains.
The allowance is shared across qualifying income, not renewed for each platform or country. Amounts already used through domestic institutions must be considered when determining what remains for foreign interest.
Does the Sparer-Pauschbetrag apply to foreign interest automatically?
A foreign platform outside German withholding does not apply it for you. Report the income and the allowance already used elsewhere through the annual return, following the instructions for the relevant year.
Verify the current Sparer-Pauschbetrag, Abgeltungsteuer, Solidaritätszuschlag and church-tax rules against BZSt guidance when filing.
Is Swiss withholding tax applied to P2P lending interest?
For a German resident, Swiss withholding tax and German assessment are separate questions. The Eidgenössische Steuerverwaltung explains the Swiss withholding framework; its bond circular explains how financing arrangements can be classified as bonds.
Qualifying Swiss bank interest and bond income can attract withholding, subject to the rules and exceptions. An ordinary borrower loan claim is not automatically treated as either instrument.
Is interest on a P2P loan claim withheld at source in Switzerland?
Ordinary loan interest generally falls outside the withholding categories for bank balances and bonds. But “P2P” is not a tax exemption: collective financing can trigger bond classification. The legal structure and payer matter.
Maclear’s tax FAQ states that Maclear makes no tax deductions. Maclear is a Swiss platform and a member of PolyReg SRO. German reporting remains the investor’s responsibility.
What counts as income on a foreign-platform statement?
Statements can show interest, principal, sale proceeds and losses. Adding every incoming payment together can overstate interest income.
For this article, the reference period is tax year 2025, using the official 2025 return instructions. Interest is generally recognized in the calendar year when received, including a credit you can actually dispose of, rather than when invested; special year-end rules can apply to regularly recurring payments.
Is the return of my principal taxable?
Repayment of your original principal is not interest income. Separate capital from interest in a combined payment. Purchased claims, sales and default losses require their own assessment rather than automatic treatment as ordinary principal repayment.
| Mechanism | Who it addresses | What it actually does | What the investor must do for a foreign platform |
|---|---|---|---|
| Freistellungsauftrag | German bank or broker handling German withholding. | Applies the available Sparer-Pauschbetrag before tax is deducted. | Cannot be applied by a foreign platform outside German withholding; an instruction filed with a German bank has no effect there. |
| Sparer-Pauschbetrag | The taxpayer. | Allows qualifying capital income to remain untaxed within the available allowance. | Report foreign interest and allowance already used elsewhere in the annual return; the Finanzamt applies the remaining allowance during assessment. |
| Swiss withholding tax on bank interest / bonds | Relevant Swiss bank or issuer. | Normally withholds tax on qualifying bank interest or bond income, subject to exceptions. | Check the applicable regime, exceptions and relief procedures at estv.admin.ch. |
| Swiss withholding tax on P2P claim interest | Swiss platform arrangement and the relevant borrower or payer. | Ordinary loan interest generally has no such withholding because it is not bank interest or bond income; financing classification can change the answer. | Verify the actual financing arrangement against estv.admin.ch and retain payment evidence. |
| Return of principal | Investor receiving repayment of original lending capital. | Returns original capital; this is not interest income. | Do not declare repayment of original principal as interest income. Purchased claims require separate assessment. |
| Sale of a claim on the Secondary Market (at par or at discount) | Investor transferring a claim. | Creates disposal proceeds requiring separate tax classification. Maclear sales are at par or at discount; no premium sale option. | Keep acquisition and sale records; check the applicable tax-year instructions before declaring any gain or loss. |
| Defaulted-claim write-off | Investor holding the affected claim. | Records a loss; tax recognition is not automatic. | Verify loss-recognition requirements and retain supporting evidence. |
Structure as of October 2026, the publication reference date; no tax rates or allowance amounts are shown. The applicable rules must be checked for the relevant tax year.
| Income source | Declaration |
|---|---|
| Domestic bank/broker interest | Normally no separate income-tax declaration is needed when German withholding and any Freistellungsauftrag have correctly settled the tax. Exceptions and assessment requests can still require action. |
| Foreign P2P platform interest | Where no German withholding agent deducts tax, the German tax resident reports qualifying interest through the annual return and supplies allowance-use information so the available Sparer-Pauschbetrag can be applied. |
Structure as of October 2026, without rates. Declaration sections and line codes vary by tax year.
Where does foreign interest go in the German tax return?
For P2P lending tax in Germany, Anlage KAP generally covers ordinary loan interest outside German withholding. To declare foreign platform interest in Germany, identify received interest, the tax period, any foreign tax and allowance already used elsewhere.
What happens if foreign interest is not declared?
Omitting reportable income can lead to additional assessments, interest and penalties; deliberate concealment can have more serious consequences.
BZSt guidance on the Common Reporting Standard explains automatic financial-account information exchange. Germany and Switzerland participate in exchange arrangements, but that does not establish that every platform or claim is automatically reported.
A Freistellungsauftrag filed with your German bank has no effect on a foreign platform, the Sparer-Pauschbetrag on that income only applies if you claim it in your return, and whether Swiss withholding tax attaches to P2P claim interest depends on the platform's regime - verify all three against current guidance from the BZSt and the Eidgenössische Steuerverwaltung before filing.
Here, “foreign platform” means one outside German withholding. The Finanzamt applies the available Sparer-Pauschbetrag during assessment using your declared income and allowance-use information; Swiss treatment depends on the financing arrangement.
Frequently asked questions
Can I give my Freistellungsauftrag to a foreign P2P lending platform?
No, where the platform does not participate in German withholding. The instruction affects an institution’s German tax deduction, rather than all your worldwide interest. A foreign-owned bank operating a German withholding arrangement is a different case. Confirm who handles withholding instead of relying solely on the institution’s address or ownership.
Does the Sparer-Pauschbetrag cover interest from a foreign platform?
Yes, qualifying foreign interest can benefit from the available Sparer-Pauschbetrag through assessment. A platform outside German withholding does not apply it automatically. Report the income and allowance already used through other institutions; the allowance is shared across qualifying capital income, rather than renewed separately for every account or country.
Is interest on a P2P loan claim withheld at source in Switzerland?
Generally not for an ordinary loan claim, but the financing arrangement must be checked. Bank balances, bonds and arrangements classified similarly follow different rules. A Swiss platform’s location alone does not determine withholding. Consult current ESTV guidance and retain the statement showing what was paid and whether tax was deducted.
Is the repayment of my principal taxable?
Repayment of your original lending capital is not interest income. Separate the capital portion from interest when a payment contains both. This answer does not automatically settle the treatment of purchased claims, Secondary Market disposals or write-offs. Those movements need their own records and classification under the applicable German rules.
What if I don't declare foreign platform interest at all?
Failing to report income that must be declared creates a compliance risk. Automatic information exchange can make qualifying foreign-account information available to German authorities, although platform-specific reporting should not be assumed. Consequences depend on the omission and circumstances, and can include additional tax, interest, penalties or proceedings for deliberate concealment.
Maclear AG is a Swiss peer-to-peer (P2P) lending and crowdlending platform, headquartered in Switzerland. The company acts as a financial intermediary in the non-banking sector and is a member of PolyReg SRO, in accordance with Swiss financial regulations, particularly regarding AML, KYC, and GDPR. Maclear provides individual and qualified investors access to carefully selected business loan opportunities, with integrated 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. Peer-to-peer (P2P) lending and crowdlending investments carry a risk of partial or total loss of capital. Past performance does not predict future results. Liquidity on a secondary market is not guaranteed. Readers are encouraged to conduct their own research and consult qualified advisors before making any financial decisions. The availability of products and services may be restricted in certain jurisdictions.