>>"is still much better than for someone who did nothing" works only if you realize a gain. But then your 14% gain is first taxed, probably syphoning off the 4.6% gain you wrote about. Of course just keeping the buying power is better than loosing a percentage of it...
>
>Alas, every income is taxable in principle. Actually, stock market gain has preferential treatment comparing to savings, so far. I have heard that Germany does not have capital gain taxes at all. Is this correct?

Capital gains on stocks held for more than 1 year will be tax free for any stocks bought before 090101. Stocks bought after that date will be taxed not only on dividends but capital gains as well. Fincancing cost for stocks will not reduce taxable amount (here I am not really sure and it might make sense insofar as it curbs speculating on borrowed money).

regards

thomas