Spenderstelle

Spenderstelle is a German term that refers to a tax-free savings vehicle designed to encourage investment in specific areas. This savings program allows individuals to save a portion of their income without paying taxes on the contributions they make. The funds saved are automatically taxed when withdrawn, which serves as an incentive for people to invest their money rather than spend it immediately.

The Spenderstelle concept is not a formal tax haven or an offshore account, but rather a nation-wide savings option. It is outlined in the German tax law, specifically in section 19a of the Income Tax Act (German: Einkommensteuer-Durchführungsverordnung, StPlanning Adjustment - AdjustmentsG in short). Those who are eligible and follow the specified conditions can take advantage of tax savings and avoid paying capital gains tax on the investment earnings.

To qualify for the Spenderstelle scheme, the individual must segregate a specific portion of their gross income into a dedicated savings account designated for this purpose. The payment into this Spenderstelle account is also made before they are taxed on their remaining income. Once these funds are used for a purpose covered by the nationally-supported investment area, no income tax or social security contributions will be withheld.

Its primary aim is to promote targeted investments by individuals and thereby stimulate the economy, which ties into broader government initiatives to grow industries, nurture entrepreneurship, and stimulate economic growth by fostering an experimental or startup sector through lowered tax burden. Since it's a formal, tax-advantaged savings program in Germany, the Spenderstelle has structural supports to ongoing national success, well-resourced home-grown initiatives can contribute supporting primary industrial strategy goals through fostering notions of technical competitiveness.