In many countries, investment income, such as dividends and capital gains, is taxed at a different rate than wage income. Today’s map focuses on how capital gains taxA capital gains tax is levied on the profit made from selling an asset and is often in addition to corporate income taxes, frequently resulting in double taxation. These taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment. rates differ across Europe.
When a person realizes a capital gain—that is, sells an asset for a profit—they face a taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. on that gain. For example, if you buy a share for €100 and sell it for €120, you pay capital gains tax on your €20 gain.
These taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment. Higher taxes also cause investors to sell their assets less frequently, which leads to fewer taxes being assessed. This is known as the realization or lock-in effect.
The capital gains tax rates shown in the map are the top marginal capital gains tax rates levied on individuals, taking into account exemptions and surtaxA surtax is an additional tax levied on top of an already existing business or individual tax and can have a flat or progressive rate structure. Surtaxes are typically enacted to fund a specific program or initiative, whereas revenue from broader-based taxes, like the individual income tax, typically cover a multitude of programs and services.es. If the capital gains tax rate varies in a country by type of asset sold, the tax rate applying to the sale of listed shares after an extended period of time is used.
Explore our interactive map below to see how your country compares.
Denmark levies the highest top capital gains tax of all countries covered, at a rate of 42 percent. Norway levies the second-highest top capital gains tax at 37.8 percent. Finland and France follow at 34 percent each.
A number of European countries do not levy capital gains taxes on the sale of long-held shares. These include Belgium, the Czech Republic, Georgia, Luxembourg, Malta, Slovakia, Slovenia, Switzerland, and Turkey. Of the countries that do levy a capital gains tax, Moldova levies the lowest rate, at 6 percent, followed by Bulgaria and Romania, at 10 percent each.
On average, the European countries covered tax capital gains arising from the sale of listed shares at 17.9 percent. Across EU Member States, the average lies at 18.6 percent.
Capital Gains Tax Rates in European OECD Countries, as of February 2024
Top Marginal Capital Gains Tax Rates on Individuals Owning Long-Held Listed Shares without Substantial Ownership (Includes Surtaxes)
| Country | Top Marginal Capital Gains Tax Rate | Additional Comments |
|---|
| Austria (AT) | 27.5% | - |
| Belgium (BE) | 0% | Capital gains are only taxed if they are regarded as professional income. |
| Bulgaria (BG) | 10% | Capital gains are subject to flat PIT rate at 10%. |
| Croatia (HR) | 12% | - |
| Cyprus (CY) | 20% | - |
| Czech Republic (CZ) | 0% | Capital gains included in PIT but exempt if shares of a joint stock company were held for at least three years (five years if limited liability company). |
| Denmark (DK) | 42% | Capital gains are subject to the normal PIT rate. |
| Estonia (EE) | 20% | Capital gains are subject to PIT. |
| Finland (FI) | 34% | - |
| France (FR) | 34% | Flat 30% tax on capital gains, plus 4% for high-income earners. |
| Germany (DE) | 26.38% | Flat 25% tax on capital gains, plus a 5.5% solidarity surcharge. |
| Georgia (GE) | 0% | Capital gains from shares held for more than two years is generally exempt from PIT. |
| Greece (GR) | 15% | - |
| Hungary (HU) | 15% | Capital gains are subject to flat PIT rate at 15%. |
| Iceland (IS) | 22% | - |
| Ireland (IE) | 33% | - |
| Italy (IT) | 26% | - |
| Latvia (LV) | 20% | - |
| Lithuania (LT) | 20% | Capital gains are subject to PIT, with a top rate of 20%. |
| Luxembourg (LU) | 0% | Capital gains are tax-exempt if a movable asset (such as shares) was held for at least six months and is owned by a non-large shareholder. Taxed at progressive rates if held <6 months. |
| Malta (MT) | 0% | Transfers of shares listed on recognized stock exchanges are usually exempt from PIT. |
| Moldova (MD) | 6% | Capital gains are taxed at 50% of the PIT rate. |
| Netherlands (NL) | 33% | Net asset value is taxed at a flat rate of 33% on a deemed annual return (the deemed annual return varies by the total value of assets owned). |
| Norway (NO) | 37.84% | Capital gains are taxed at a 22% rate. A multiplier of 1.72 before taxation applies to gains from the sale of shares. |
| Poland (PL) | 19% | - |
| Portugal (PT) | 28% | PIT applies if the assets were held for less than one year. |
| Romania (RO) | 10% | - |
| Slovakia (SK) | 0% | Shares are exempt from capital gains tax if they were held for more than one year and are not part of the business assets of the taxpayer. |
| Slovenia (SI) | 0% | Capital gains rate of 0% if the asset was held for more than 15 years (rate up to 25% for periods less than 15 years). |
| Spain (ES) | 28% | - |
| Sweden (SE) | 30% | - |
| Switzerland (CH) | 0% | Capital gains on movable assets such as shares are normally tax-exempt. |
| Turkey (TR) | 0% | Shares that are traded on the Stock Exchange and that have been held for at least one year are tax-exempt (two years for joint stock companies). |
| Ukraine (UA) | 19.5% | Capital gains are subject to PIT. |
| United Kingdom (GB) | 20% | - |
Note: “PIT” refers to personal income tax.Sources: Bloomberg Tax, “Country Guide,” https://www.bloomberglaw.com/product/tax/toc_view_menu/3380/; and PwC, "Worldwide Tax Summaries Online," https://taxsummaries.pwc.com/.
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FAQs
Capital gains tax rate 2024
In 2024, single filers making less than $47,026 in taxable income, joint filers making less than $94,051, and heads of households making $63,000 or less pay 0% on qualified realized long-term gains. If your taxable income exceeds those amounts, you may be subject to 15% and 20% tax rates.
What will capital gains tax be in 2024? ›
Capital gains tax rate 2024
In 2024, single filers making less than $47,026 in taxable income, joint filers making less than $94,051, and heads of households making $63,000 or less pay 0% on qualified realized long-term gains. If your taxable income exceeds those amounts, you may be subject to 15% and 20% tax rates.
What is the capital gains tax rate in Europe? ›
On average, the European countries covered tax capital gains arising from the sale of listed shares at 17.9 percent. Across EU Member States, the average lies at 18.6 percent.
How much is capital gains tax UK 2024? ›
Capital Gains Tax rates in the UK for 2024/25
10% (18% for residential property) for your entire capital gain if your overall annual income is below £50,270. 20% (24% for residential property) for your entire capital gain if your overall annual income is above the £50,270 threshold.
What is the tax rate in Germany in 2024? ›
Germany has four tax brackets. For 2024, the first tax bracket states than an income of €11,604 or less is tax-free for a single person. In the second tax bracket, incomes up to €66,760 are taxed with a rate that progresses incrementally from 14 per cent to 42 per cent.
What will be the tax brackets for 2024? ›
2024 Tax Brackets (Taxes Due 2025)
| Tax Rate | Single | Married filing separately |
|---|
| 10% | $11,600 or less | $11,600 or less |
| 12% | $11,601 to $47,150 | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 | $47,151 to $100,525 |
| 24% | $100,526 to $191,950 | $100,526 to $191,950 |
3 more rowsHere's how it works: Taxpayers can claim a full capital gains tax exemption for their principal place of residence (PPOR). They also can claim this exemption for up to six years if they move out of their PPOR and then rent it out. There are some qualifying conditions for leaving your principal place of residence.
How to avoid capital gains tax in Europe? ›
Assets held for more than a certain period (usually more than 10 years) may be exempt from capital gains tax, making a long-term investment strategy particularly attractive. Reinvesting gains from the sale of assets in other investment projects or assets may offer opportunities to defer or reduce tax liabilities.
What is the capital gains tax in Germany? ›
Capital Gains Tax Rate in Germany
Capital gains in Germany are subject to a 25 percent flat tax rate plus a 5.5% solidarity surcharge (Solidaritätszuschlag in German). On top of it, you might pay church tax, if applicable.
What is the capital gains tax in France? ›
Tax will be taken at 19% with a further 17.2% (or 7.5%, if applicable) in social charges. There are allowances applied for the period of ownership, thus the weight of tax reduces over time, avoiding real estate capital gains tax after 22 years and social charges after 30 years.
The rates of CGT are generally 10% and 20%. However 18% and 24% rates apply for carried interest and for chargeable gains on residential property that does not qualify for private residence relief.
What is the capital gain tax rate in the USA? ›
Short-term capital gains taxes are paid at the same rate as you'd pay on your ordinary income, such as wages from a job. Long-term capital gains tax is a tax applied to assets held for more than a year. The long-term capital gains tax rates are 0 percent, 15 percent and 20 percent, depending on your income.
How to avoid capital gains tax? ›
9 Ways to Avoid Capital Gains Taxes on Stocks
- Invest for the Long Term. ...
- Contribute to Your Retirement Accounts. ...
- Pick Your Cost Basis. ...
- Lower Your Tax Bracket. ...
- Harvest Losses to Offset Gains. ...
- Move to a Tax-Friendly State. ...
- Donate Stock to Charity. ...
- Invest in an Opportunity Zone.
There has been a two-rate system for income tax for several years. In 2023, the basic rate will be 36.93% and the top rate will be 49.50% for income above 73.031,-. As of January 1, 2024, the basic rate will increase slightly to 36.97% and the top rate of 49.50% will remain unchanged for income above €75.518.
What is the tax rate in Switzerland? ›
At the cantonal level, the due dates vary from canton to canton. Federal: 11.5%. Cantonal and communal PIT rate varies per canton and is added to the federal PIT rate, resulting in an overall PIT rate between 22.1% and 45.5% at the capital of a specific Swiss canton. Generally, 31 March, but may vary per canton.
What will long term capital gains tax be in 2026? ›
Beginning in 2026, the starting points for the 15 percent and 20 percent rates for capital gains and qualified dividends will match the starting points for tax brackets applicable to ordinary income, as under pre-2018 law.
Do you have to pay capital gains after age 70? ›
The IRS allows no specific tax exemptions for senior citizens, either when it comes to income or capital gains. The closest you can come is contributing to a Roth IRA or Roth 401(k) with after-tax dollars, allowing you to withdraw money without paying taxes.
Is there a way to avoid capital gains tax on the selling of a house? ›
You will avoid capital gains tax if your profit on the sale is less than $250,000 (for single filers) or $500,000 (if you're married and filing jointly), provided it has been your primary residence for at least two of the past five years.
How do I calculate capital gains on sale of property? ›
Capital Gains Taxes on Property
Your basis in your home is what you paid for it, plus closing costs and non-decorative investments you made in the property, like a new roof. You can also add sales expenses like real estate agent fees to your basis. Subtract that from the sale price and you get the capital gains.
