Contents
Investment taxation varies dramatically across Europe. The same ETF can be taxed at 0% in Belgium and 30% in France. Understanding local rules is essential.
Capital Gains Tax by Country
| Country | Capital Gains | Dividends | ETF Special |
|---|---|---|---|
| Germany | 25% + surcharge | 25% + surcharge | Teilfreistellung: 30% gains tax-free |
| France | 30% flat (PFU) | 30% flat | +17.2% social charges |
| Netherlands | Box 3 wealth tax | Box 3 | Reforming to actual returns |
| Spain | 19-28% | 19-28% | Progressive rates |
| Italy | 26% | 26% | Two regime options |
| Belgium | 0% (stocks) | 30% | Stock gains often tax-free |
| Portugal | 28% standard | 28% | NHR changes 2026 |
Germany Teilfreistellung Explained
30% of equity ETF gains are tax-free. On 1,000 EUR gain, only 700 EUR taxed at 25% = 175 EUR (effective 17.5%).
Tax-Efficient Strategies
- Accumulating ETFs — defer dividend tax in most countries
- Tax-advantaged accounts — UK ISA, French PEA, German VL-Sparen
- Tax-loss harvesting — offset gains with losses
- Hold 1+ years — some countries reduce rates for long-term
Key Takeaways
- Rates range from 0% (Belgium) to 30%+ (France)
- Germany: 30% of equity ETF gains tax-free
- Accumulating ETFs defer dividend tax
- Use country-specific tax-advantaged accounts
- Check local rules — they change frequently
FAQ
Are accumulating ETFs tax-free?
No, but they defer taxation allowing more compounding. Check your country rules.
Lowest investment tax in Europe?
Belgium (0% stock gains), Switzerland (low cantonal rates).
