🇪🇺 Europe Capital Gains Tax Guide
Capital Gains Tax varies significantly across the European Union, with no single EU-wide rule. Each member state enforces its own rates, exemptions, and holding periods.
How Capital Gains Tax Works in Europe
Investors must check their specific tax residence rules. Some countries offer generous allowances or zero tax after a long holding period, while others apply flat or progressive rates.
•Germany (Abgeltungsteuer): ~26.375% flat rate (including solidarity surcharge)
•France (PFU): 30% flat tax (Prélèvement Forfaitaire Unique)
•Belgium: Generally 0% on long-term private shareholdings (speculative trades taxed at 33%)
•Ireland/Spain: ~33% / 19-28% respectively
Example: Capital Gains Tax in Europe
Scenario
Selling €10,000 profit worth of ETFs in different countries.
GermanyTax ~€2,638
FranceTax €3,000
Belgium (Good Management)Tax €0
Netherlands (Box 3)Taxed on deemed return, not actual gain
Your tax liability is entirely dependent on your fiscal residency, not just EU citizenship.
General EU Tax Considerations
Fiscal Residence
Moving residence to a tax-friendly jurisdiction (e.g., Belgium, Switzerland, Portugal NHR) before realizing large gains can eliminate tax.
Tax Wrappers
Use local accounts like PEA (France) or ISK (Nordics) where available to shelter gains.
Holding Periods
Check if your country allows tax-free sales after 1 year (e.g., Luxembourg, formerly Germany) or longer.
Tax Optimization Tools
Disclaimer: This is general information only, not tax advice. Tax laws change frequently and vary by individual circumstances. Consult a qualified tax professional in Europe for your specific situation.
