- April 23, 2024
- Posted by: legaleseblogger
- Category: Related News
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## Taxation of ETFs in Europe
I am interested in exploring the taxation rules applicable to Exchange Traded Funds (ETFs) in various European countries. It has come to my attention that in Ireland, individuals are required to pay taxes every 8 years, regardless of whether they sell their ETF holdings or not.
For example, if an individual in Ireland holds two ETFs for 8 years and is approaching the end of the 8th year, they will be subject to taxation:
– ETF-A realizes a gain of 10K
– ETF-B incurs a loss of 10K
In this scenario, the government taxes the 10K gain from ETF-A but does not offset it with the 10K loss from ETF-B. This taxation approach raises questions about the fairness and efficiency of the system.
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With the help of the AI Legalese Decoder, individuals like yourself can gain a better understanding of the nuanced differences in ETF taxation across Europe. This tool can streamline the process of comparing and contrasting tax laws, enabling you to make informed decisions regarding your investments.
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****** just grabbed a
In Greece ETFs are not taxed, even if you cash out, as long as they’re offered by a broker from within the EU. Otherwise it’s 15%
Czech Republic they are tax free after 3 years.
But from 2024 you can only sell tax free up to 40 million Czech crowns (1.58m euros) per year. Everything above the 40m mark is taxed at 23%.
Luxembourg, Tax free after 6 months of holding.
Woah woah woah there buddy, you haven’t told the best part of living in Ireland. We’re taxed at **41%** of the “gain” even if we haven’t sold 🙂
Netherlands – You get taxed once a year for your total portfolio value.
It doesn’t matter if you had a +20% or a -20% year. The tax man bases the bill on what the value was on Jan 1st every year.
The first 57k is tax free (114k for married people).
Some approximate stats what the tax bill will be;
€100k – €1000
€250k – €4200
€500k – €9600
€750k – €15000
€1m – €20500
[Edit; If you want to toy around with how much the tax bill is for your situation there is
https://www.berekenhet.nl/sparen-en-beleggen/box3-vermogensbelasting.html#calctop
Fill in the bottom box (labeled ‘Overig Bezig’) and hit the big blue ‘Berekenen’ button.
Portugal: The capital gains tax is 28%. Only realized gains are taxed, and if you had realized losses in that year, they are deducted from the realized gains.
However, since 2023, if you hold the securities for less than 1 year and your total yearly income (including wages) is above 81,199 €, your capital gains are taxed at the personal income general rates (like wages), with a [progressive tax up to 48%](https://www.pwc.pt/en/pwcinforfisco/statebudget/pit-and-social-security.html). There’s also a solidarity tax surcharge of 2.5% on the 80,000 € to 250,000 € bracket, and 5% over 250,000 €. This doesn’t apply to dividends and interest, which are still taxed at 28%.
If you have low income (including the capital gains), the 28% tax can be reduced, by having the capital gains taxed at the [personal income general rates](https://www.pwc.pt/en/pwcinforfisco/statebudget/pit-and-social-security.html). You have to choose this option when filling the tax return. It’s the same with dividends and interest.
Slovakia: tax-free after 1 year of holding.
I assume that will change as soon as some dimwit from our current bunch of cunts corrupt mafia government finds out about it and they’ll rob it just as they’re robbing our equivalent to 401k in US.
Belgium. No tax if it’s reasonable investing of your personal capital.
In France, ETF are taxed once you sold it with a gain. So only the realized capital gains are taxed.
Any idea how it works in Spain?
Ireland – 41% of Capital Gains. I believe that’s the highest it gets 
In Slovenia the tax on your capital gains are as follows:
If you keep ETFs, stock etc. less than 5 years: 25%
If you keep them 5-10 years: 20%
If you keep them 10-15 years: 15 %
If you keep them 15 years and one day: 0%
Bosnia 10%. Croatia is like 12 I believe? But the real winner is no capital gains tax in real estate (or property tax)
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Austria: 27,5 % when you sell. Gains and losses of ETFs, stocks and bonds in the same year can be counted against each other.
In Hungary you pay 15% after gain, but if you store in special account you can get the gain and divident tax free. On that account you have to hold 1+5 year; it is not just ETF.
Romania: they’re considered capital gains. If the broker is registered in Romania, you pay 1% on the profit if you held them for longer than a year, or 3% if less. Losses aren’t deducted.
If the broker isn’t registered in Romania, you pay 10%.
In addition, if you pass certain thresholds you also pay into the national healthcare system (with some exceptions). The thresholds are 6, 12 and 24 minium wages and your contribution is calculated based on the threshold you passed (so capped at 24 minium wages).
In Denmark ETFs are taxed on the stock principle: you pay tax on UNREALIZED profits every year (and unrealized losses are deductible on following years).
Tax is 27% (up to 42%) if it’s shares-only and 37% (up to 42%) if it has bonds in the mix.
Bloody scam if you ask me…
In slovenia, you pay 25% when you sell. This is reduced to 20 after 5 years, 15 after 10 years and after 15 years you don’t get taxed.
Lithuania – 15 % from profit (if you sold anything to a loss that year, this loss decreases profit).
> they do not cancel each other out
Same thing in Italy. Capital gain tax is 26% of the profit, but you can only detract very specific types of losses against very specific types of gains.
So losses from ETFs are only credited towards bonds gains (not the coupons! Only the principal), and certificates gains (as long as the dividend is not guaranteed).
This is helping both the state (gets more taxes) and banks selling you their shitty certificates.
In Latvia, AFAIK, usual capital gains tax rate, 20%.
Estonia – taxed 20% when you take it out. Tax free before that. 14% tax if you take out dividends same amount for 3 years.
GREECE: 0% tax for capital gains from UCITS ETFs
FRANCE: 30% flat tax on capital gains except if in special account (PEA etc) where tax is 17.2%
Portugal – 28% of capital gains
Czech Republic – you only pay tax on realised gains, and if you kept the security for more than three years you don’t pay anything. If you own it for less than 3 years the rate on the gains is 15% (standard for all types of income)
30% in France flat tax. Absolute bullshit. They want the average person to stay poor while massive companies keep managing to weasel their way out paying taxes.
In Croatia you pay taxes on dividend gain and if you sell ETF with profit under 2 years from buying.
Anyone have info bout the Finland system ?
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Germany is 25%, only after sale and on profit.
What the hell.
That is probably the worst thing ive ever seen XD.
We pay no tax except when cashing out or gaining dividends. This is free until 1000€ for every year. Otherwise need to tax every year.
Germany
Poland it’s 19%.
In Portugal is also 19% if I remember correctly.
As for capital gains in Poland, you don’t split the asset. Basically when you are filling the taxes you put how much you bought and how much you sold and you pay taxes on that. In any case it will always sort how eventually
Belgium it’s taxed 30% which is crazy. That’s why most invest here in acc etfs or growth stocks as getting dividends minus 30% is not great
Belgium, no capital gains tax if you are not a professional trader, 30% on dividends, that’s why I only invest in accumulating ETF
Czechia:
If you sell more than 5k$ you have to declare it but if you held for longer than 3 years it’s 0% tax
But if you have any dividends they are a pain to file and you pay 15% tax and can’t offset any of that against losses. So I just buy accumulating ETFs and plan to hold it for more than 3 years
RemindMe! -7 day
In Spain you pay at realized gains, and they have a flat % (19% I think?) so as long as you get accumulative etfs you ideally only pay taxes once
In Poland there’s 19% on dividend, and 19% on capital gains at the moment you sell (first in, first out). If you have multiple ETFs capital gains will cancel each other if you sell them in the same year.
,and if in given year you have a loss, you have next 5 years to use it (maximum 50% of loss in 1 year).
19% on dividend kinda sucks, because if it’s e.g SP500 ETF it has 3 levels of taxation:
– it’s 15% in the US,
– then it’s tax depending on ETF residence (for Ireland it’s 0%),
– then its 19% in Poland.
When owning stock directly, and if broker supports w-8 Ben form, it would be only 15% tax in us and 4% in Poland.
There’s no such thing as paying every year/every x years on the theoretical profit. You only pay once you receive dividend or sell the stock.
Some brokers might have deposit fee (for example 0.1% yearly of all stocks)
Italy: 26% on capital gains.
We don’t have an option for “DIY” tax free/low tax stocks investments for retirement…
I didn’t realize other countries in Europe had such complicated taxing systems regarding this. In Portugal it’s 28% on capital gains, it’s very high but at least it’s simple.
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Norway it’s 38% on realized profits. If you have a stock account you can sell and trade freely within tht account, but once you take something out it’s taxable, however it’s only on gains.
Italy
0,2% yearly capital tax on total holdings value, regardless of it being in profit or not
26% capital gain on cash out
Love
For the full picture, you should also ask how the ETF dividends are taxed too. In the debate in Ireland it is often overlooked that not only the capital, but the dividends on accumulating ETFs during the 8-year period are untaxed too. This means there is potential to benefit from the compounded returns of both the capital and dividends reinvested during that time frame. I am aware of at least a few countries where dividends are taxed even on accumulating ETFs. While there is a significant tax hit every 8 years, you may be more likely to be sitting on a 10k gain on an ETF in Ireland, compared to other countries, where the dividends have been hit by tax every year, thus lowering the compounded return. For the record, I dislike the method used (deemed disposal), just trying to bring some balance to the debate.