Capital Gain Taxation in Europe
Capital gains tax, often abbreviated as CGT, is a tax levied on the profit realized from the sale of a non-inventory asset. The nuances of this tax vary across countries, and in Europe, the landscape is particularly diverse. Let's delve into the specifics of how various European countries approach both personal income tax and capital gains tax.
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Austria: While personal income is taxed progressively, ranging from 25% to 55%, capital gains are taxed at a flat rate of 27.5%.
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Belgium: Personal income tax is progressive, ranging from 25% to 50%, with the first €8,000 being tax-free. Interestingly, Belgium does not levy a specific capital gains tax.
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Bulgaria: Both personal income and capital gains are taxed at a flat rate of 10%.
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Croatia: Personal income tax rates are progressive, ranging from 24% to 36%, while capital gains are taxed at 12%.
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Cyprus: Personal income tax rates are progressive, starting from 20% and going up to 35%, with the first €19,500 being tax-free. Capital gains are taxed at 20%.
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Czech Republic: Personal income is taxed at 15%, with an additional 7% for those with incomes exceeding 48 times the average salary. Capital gains are also taxed at 15%.
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Denmark: Personal income tax rates are progressive, ranging from 25% to 56.6%. Capital gains are taxed at 27% for amounts up to DKK 55,300 and 42% for amounts exceeding that.
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Estonia: A flat rate of 20% is applied to worldwide income, including capital gains. The first €6,000 is tax-free.
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Finland: Personal income tax can go up to 56.4%. Capital gains are taxed at 30% for gains up to €30,000 and 34% for higher amounts.
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France: Personal income tax can reach up to 49%. Capital gains are subject to a flat tax of 30% or progressive tax rates, with additional considerations for shares held before 2018.
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Germany: Personal income tax rates range from 14% to 47.475%. Capital gains tax varies based on share participation and can be as high as 26.375%.
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Greece: Personal income tax rates range from 9% to 44%, while capital gains are taxed at 15%.
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Hungary: Both personal income and capital gains are taxed at a flat rate of 15%.
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Ireland: Personal income tax rates range from 20% to 50%. Capital gains are taxed at 33%.
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Latvia: Personal income tax rates range from 20% to 31.4%. Capital gains are taxed at 20%.
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Lithuania: Personal income tax rates range from 15% to 20%.
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Luxembourg: Personal income tax rates range from 0% to 45.78%.
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Malta: Personal income tax rates range from 15% to 35%. Similarly, capital gains tax rates range from 15% to 35%.
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Netherlands: Personal income tax rates range from 37.35% to 49.5%. Capital gains are taxed at 26.25% for 2020 and 26.9% for 2021.
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Poland: Personal income tax rates range from 17% to 32%.
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Portugal: Personal income tax rates range from 14.5% to 48%. Capital gains are subject to a flat tax of 28%, with potential reductions.
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Romania: Both personal income and capital gains are taxed at a flat rate of 10%.
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Slovenia: Personal income tax rates range from 16% to 50%. Capital gains are taxed at 27.5%.
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Spain: Personal income tax rates range from 19% to 48%. Capital gains tax rates are progressive, ranging from 19% to 23%.
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Sweden: Personal income tax rates range from 30% to 50%. Capital gains on shares not held in ISK are taxed at 30%.
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Switzerland: Personal income tax rates are progressive, ranging from 0.77% to 41.27% at the federal level and can vary at the cantonal level.
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United Kingdom: Personal income tax rates range from 20% to 45%. Capital gains tax varies based on several factors, including the type of relief applied.
In summary, while the taxation landscape across Europe is diverse, each country has its unique approach to both personal income and capital gains, reflecting their economic strategies and priorities.
Disclaimer: Always speak directly to an attorney; blog posts are not a sufficient source of information to make decisions, may not be appropriate for your situation, may not be well researched, and may not be current at the time you read them, always speak directly with an attorney.
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