Try it: capital gains tax estimator
The formula
Every European country starts from the same simple calculation:
Taxable gain = Sale price − Purchase price − Allowable deductions
What differs is everything around it: the rate applied (flat or progressive), the allowances (annual exemptions, loss offsets), and which assets are covered. That is why a pan-European rule of thumb does not exist — but the definition is universal.
2026 headline rates across Europe (indicative)
The table below shows indicative headline 2026 rates from public sources. Tax law changes constantly — treat these as orientation, not advice, and confirm with a professional before making decisions.
| Country | Headline rate | Notes |
|---|---|---|
| 🇩🇪 Germany | 25% flat | Abgeltungsteuer; ~26.4% effective with solidarity surcharge; €1,000 annual saver's allowance |
| 🇫🇷 France | 30% flat | Prélèvement forfaitaire unique: 12.8% tax + 17.2% social charges |
| 🇬🇧 United Kingdom | 18% / 24% | Basic-rate vs higher-rate taxpayers (from April 2026); small annual exemption |
| 🇮🇪 Ireland | 33% | One of Europe's highest; €1,270 annual exemption |
| 🇮🇹 Italy | 26% flat | Straightforward flat tax on most capital income |
| 🇷🇴 Romania | 10% flat | Low flat rate under personal income tax |
| 🇧🇬 Bulgaria | 10% flat | Capital gains taxed at the 10% flat PIT rate |
| 🇭🇷 Croatia | 12% | Below the EU average of ~18.6% |
| 🇧🇪 Belgium | 0% | No CGT on normal private investments; speculative gains excepted |
| 🇱🇺 Luxembourg | 0% | No CGT after the qualifying holding period for private investors |
| 🇳🇱 Netherlands | varies | Box 3 "deemed return" system: taxes assumed returns on wealth, not actual gains |
| 🇨🇿 Czech Republic | 0% possible | Gains exempt after the qualifying holding period |
Worked example
Elena, resident in Germany, buys ETF shares for €10,000, sells them years later for €16,000, and paid €200 in brokerage fees:
- Taxable gain: €16,000 − €10,000 − €200 = €5,800
- German Abgeltungsteuer 25%: €5,800 × 25% = €1,450 (before the small solidarity surcharge and the €1,000 annual allowance)
- Net gain after tax: €5,800 − €1,450 = €4,350
In Belgium, the same trade would likely be €0 tax — the country is the variable, not the math.
Frequently asked questions
What is capital gains tax in simple terms?
Capital gains tax (CGT) is a tax on the profit you make when you sell an asset for more than you paid for it. You buy shares for €5,000, later sell them for €8,000 — your capital gain is €3,000, and the tax applies to that €3,000, not the full €8,000.
When do I pay capital gains tax?
Only when you realise the gain — that is, when you sell or otherwise dispose of the asset. If your investments grow but you do not sell, there is normally no capital gains tax yet. The gain becomes taxable at the moment of sale (or gift, in some countries).
How is capital gains tax calculated?
The basic formula everywhere in Europe is: sale price minus purchase price minus allowable costs (brokerage fees, notary costs, documented improvements) equals the taxable gain. Your country's tax rate is then applied to that gain. Some countries let you offset gains with losses from other sales.
Does capital gains tax apply to crypto in Europe?
In most European countries, yes — profits from selling cryptocurrency are treated as capital gains and taxed at the country's applicable rate. A few jurisdictions have special crypto regimes (for example holding-period exemptions in some countries), so check your national rules.
Do I pay capital gains tax when I sell my home?
Most European countries exempt your main residence (principal private residence relief): if you lived in the home you sell, the gain is typically tax-free. Gains on second homes, rental properties and buy-to-let investments are usually taxable.
Which European countries have no capital gains tax?
Several European countries levy no capital gains tax on most private investments, including Belgium, Luxembourg, Slovakia, Slovenia, Switzerland and Malta — though conditions and exceptions apply (for example Belgium taxes speculative gains). Others, like the Czech Republic, exempt gains after a qualifying holding period.
How can I legally reduce my capital gains tax bill?
Common legitimate strategies include offsetting gains with capital losses from other disposals, deducting all allowable costs (fees, improvement expenses), using annual tax-free allowances, holding assets past a qualifying exemption period where one exists, and using tax-sheltered accounts. Always stay within the law and keep records.
Is capital gains tax the same as income tax?
No. Income tax applies to earnings like salary, interest and rent as they arise; capital gains tax applies only to the profit realised when you sell an asset that increased in value. The rates, allowances and reporting rules are different in every country.