The profit or income earned from invested capital. This includes interest, dividends, or gains from the sale of securities.
example
In Deutschland müssen Kapitalerträge mit der Abgeltungsteuer versteuert werden.
In Germany, investment income must be taxed with the flat-rate withholding tax.
Usage tips
Word composition
This noun is composed of 'das Kapital' (capital) and 'der Ertrag' (return, yield, profit). Its meaning is therefore very clear: it is the return you receive from your capital.
EXAMPLE
Der Verkauf der Aktien brachte ihm einen hohen Kapitalertrag.
The sale of the shares brought him a high investment return.
Often in the plural
Although the singular form exists, the word is very often used in the plural ('die Kapitalerträge', investment income/capital gains). This is because people or companies often have income from several different investments.
EXAMPLE
Alle seine Kapitalerträge aus dem letzten Jahr müssen in der Steuererklärung angegeben werden.
All of his investment income from last year must be reported in the tax return.
Financial term
'Kapitalertrag' (investment income) is a technical term from the fields of finance, banking, and tax law. You will encounter it mainly in bank documents, financial news, or when filing a tax return.
EXAMPLE
Die Bank schickt jährlich eine Übersicht über die erzielten Kapitalerträge.
The bank sends an annual overview of the investment income earned.
Typical verbs
This noun is frequently combined with the verbs 'erzielen' (to earn/make a profit) and 'versteuern' (to pay tax on it). It often refers to 'Zinsen' (interest) or 'Dividenden' (dividends).
EXAMPLE
Wer in Deutschland Kapitalerträge erzielt, muss darauf Steuern zahlen.
Anyone who earns investment income in Germany must pay tax on it.
Compare with
near_synonym · confusable
Kapitalertrag vs Gewinn
profit / prize
'der Gewinn' and 'der Kapitalertrag' can both mean money that you receive in addition. 'der Gewinn' is the more general term, especially when something is left over after costs. 'der Kapitalertrag' is more specific: it comes from invested money, for example through interest, dividends, or the sale of securities. The words can be confused because investment income can be a type of profit. In conversations about companies, 'Gewinn' often fits; for banks, investments, and taxes, 'Kapitalertrag' is more precise.
Kapitalertrag
Auf Kapitalerträge aus Aktien muss man in vielen Fällen Steuern zahlen.
In many cases, you have to pay taxes on investment income from stocks.
Gewinn
Der Gewinn des Betriebs wurde in neue Maschinen investiert.
The company's profit was invested in new machines.