Lesson 7.1 · 1 of 5 · Tax, pensions and protection where you live
Capital gains tax on shares in the EU: what to check in your country
In the EU, tax on share gains is set by the country where you are tax resident, not by where your broker is. Most countries tax the gain when you sell: the sale price minus the purchase price and fees. A few, such as the Netherlands, tax a yearly return on holdings instead. Rates and allowances differ.
Terms in this lesson
- Capital gain
- The difference between the price you sell at and the price you bought at.
- Broker
- The firm through which you buy and sell stocks, ETFs and other investments.
- Trading commission
- What it costs you to buy, sell and hold shares at a broker.
Opening question
You live in Spain and invest through a broker based in Germany. Which country’s rules decide the tax on your share gains?
Share gains are taxed by your country of tax residence. The broker’s country affects the paperwork, and the company’s country matters for dividends, but neither sets the tax on your gain.
It does not matter if you get it wrong: trying first helps you remember.
How capital gains tax on shares is calculated
Definition
What exactly is taxed?
The gain when you sell, not the shares you hold.
Your capital gain is what you sold for minus what you paid, with the fees on both sides taken off. In most EU countries nothing is due while you simply hold the shares, although a few, such as the Netherlands, tax a yearly return on the value of your savings and investments instead. If the shares are priced in dollars, many countries want each amount converted into your currency at the rate on the day of each trade, so a currency move can change your taxable gain.
- Sale amountnumber of shares × sale price, minus the selling fee
- Minus the purchase costnumber of shares × purchase price, plus the buying fee
- Equals the taxable gainconverted into your currency, under your country’s rule
Work it out
You buy 20 shares at €50 each and pay a €5 fee. Later you sell all 20 at €65 each and pay another €5 fee. What is your taxable gain, in euros?
A hint
Work out the sale amount after the fee, then take off the purchase cost including its fee.
Sale: 20 × €65 = €1,300, minus the €5 fee = €1,295. Cost: 20 × €50 = €1,000, plus the €5 fee = €1,005. Gain: €1,295 minus €1,005 = €290. Forgetting the fees would overstate the gain by €10.
If you bought the same share several times at different prices, your country also decides which purchase you have sold. Germany, for example, treats the shares bought first as the ones sold first; other countries use an average purchase price. Your broker’s yearly report may already follow your country’s rule, or it may not.
Capital gains tax rates in EU countries: three examples
There is no EU-wide rate. Each country sets its own, and the systems work quite differently. The examples below show the range. They are not the rule for your country unless you are resident there.
| Example country | How share gains are taxed in 2026 |
|---|---|
| Germany | A flat 25%, plus a 5.5% solidarity surcharge on that tax, and church tax for church members. The first €1,000 a year of all investment income is tax-free (€2,000 for married couples filing jointly). |
| Spain | Bands on all savings income together: 19% up to €6,000, 21% up to €50,000, 23% up to €200,000, 27% up to €300,000 and 30% above that. The Basque Country and Navarre have their own rules. |
| France | A flat 31.4%: 12.8% income tax plus 18.6% social levies on 2026 income. You can opt for the progressive income tax scale instead. |
Examples only, checked on 29 October 2026 with Germany’s tax administration, Spain’s Agencia Tributaria and France’s Service-Public.fr. France’s budget for 2027 was still being debated in October 2026 and could change its rate again.
Work it out
Germany in 2026, as an example: a flat 25% tax, plus a 5.5% solidarity surcharge on that tax, and a €1,000 yearly allowance. A single person with no church tax and no other investment income makes a €3,000 gain. How much tax is due, in euros?
A hint
Take off the allowance first. The surcharge is a percentage of the tax, not of the gain.
How sure are you?
Taxable: €3,000 minus €1,000 = €2,000. Tax: 25% of €2,000 = €500. Surcharge: 5.5% of €500 = €27.50. Total €527.50, which is 26.375% of the taxable part. A common mistake is to add 5.5% of the gain instead of 5.5% of the tax.
Compare
Spain in 2026, as an example: savings income is taxed at 19% on the first €6,000 and 21% from €6,000 to €50,000. You have no other savings income and the gain is the same either way. Which plan pays less tax in total?
This exercise is in the free account, where we also save your progress.
Create a free accountLocal or foreign broker: who pays the tax on share gains?
A broker in your countryoften handles the tax
- In some countries the broker withholds the tax on each sale, as German banks do with the flat tax
- Others send you, or the tax office, a ready-made yearly report
- Withholding is not always final: you may still have to file
A broker in another countryusually you file
- May offer lower fees or more markets
- It normally withholds nothing for your country’s tax
- You work out the gain, convert it and declare it yourself
- You keep the yearly statements, usually for several years
Check yourself
Your broker is based in another EU country and sends you only a yearly statement. What usually happens with the tax on your gains?
This exercise is in the free account, where we also save your progress.
Create a free accountLosses on shares and your tax return
A loss counts only when you sell. Most countries let you set a realised loss against gains in the same year, and many let you carry the rest forward. The limits differ: in Germany, for example, losses on shares can only be set against gains on shares, and unused losses carry forward to later years.
Myth or fact?
“My shares are down 20% this year, so I can deduct that loss on this year’s tax return.”
This exercise is in the free account, where we also save your progress.
Create a free account- Where am I tax resident?Usually the country where you live most of the year. That country taxes your gains, wherever the broker is.
- Flat rate, bands or added to income?Or a yearly tax on what I hold, as in the Netherlands? And is there a yearly allowance before tax starts?
- Does my broker withhold the tax?If not, you declare the gain yourself and pay by your country’s deadline.
- Which purchase price and exchange rate?Shares bought first sold first, or an average price; the rate on each trade date, or another rule.
- How can I use losses?Against which gains, and for how many years.
What would you do?
You sold shares at a broker in another EU country and made a €2,400 gain. Your tax return is due in three months. What do you do?
This exercise is in the free account, where we also save your progress.
Create a free accountWhat you learned
- Tax on share gains is set by the country where you are tax resident, not by where your broker is.
- The gain is the sale price minus the purchase price and fees; rates differ widely, for example 25% plus a surcharge in Germany and 19% to 30% in Spain.
- A foreign broker usually leaves the tax return to you, and a loss counts only once you sell.
You reached the end
Keep what you learned
With a free account we remember your lessons, bring back the questions you got wrong exactly when you need them and keep your streak.
Save your progress with a free accountLessons are educational. They are not a recommendation to buy or sell. Investing involves risk and you can lose money. Sources: Germany’s tax administration (Finanzverwaltung NRW: Abgeltungsteuer, Sparer-Pauschbetrag) and § 20 of the Income Tax Act (EStG); Spain’s Agencia Tributaria (savings income scale under Ley 7/2024); France’s Service-Public.fr (revenus d’épargne et de placements); European Commission (DAC2, Directive 2014/107/EU; Your Europe: double taxation); all checked on 29 October 2026.