Absolutely. That is either "Teileinkünfteverfahren" (60% of 1 Million EUR are taxed, 40% are tax-exempt) or "Abgeltungssteuer" (Government takes a 25% cut). Fun fact: there is no tax on winning the lottery in Germany!
You pretty much pay taxes on everything in the EU. In Germany there are ways you can reduce the total tax you have to pay and as far as I know you wont have to pay social security contributions on that. It'll still be 6 digit tax amount.
@ 4% that's €40k/year
more than what most regular people have