Capital Gains Tax Rates in Europe, 2022

In many countries, investment income, such as dividends and capital gains, is taxed at a different rate than wage income. Today’s map focuses on how capital gains are taxed, showing how capital gains tax rates differ across European OECD countries.

When a person realizes a capital gain—that is, sells an asset for a profit—they face a tax on that gain. For example, if you buy a share for $100 and sell it for $120, you pay capital gains taxA capital gains tax is levied on the profit made from selling an asset and is often in addition to corporate income taxes, frequently resulting in double taxation. These taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment. on your $20 gain.

The capital gains taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. rates shown in the map are the top marginal capital gains tax rates levied on individuals, taking into account exemptions and surtaxes. If the capital gains tax rate varies in a country by type of asset sold, the tax rate applying to the sale of listed shares after an extended period of time is used.

Denmark levies the highest top capital gains tax of all countries covered, at a rate of 42 percent. Norway levies the second-highest top capital gains tax at 35.2 percent. Finland and France follow, at 34 percent each.

A number of European countries do not levy capital gains taxes on the sale of long-held shares. These include Belgium, the Czech Republic, Luxembourg, Slovakia, Slovenia, Switzerland, and Turkey. Of the countries that do levy a capital gains tax, Greece and Hungary have the lowest rates, at 15 percent.

On average, the European countries covered tax capital gains arising from the sale of listed shares at 19.4 percent.