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Income tax - capital gains on securities

Verified 08 June 2023 - Legal and Administrative Information Directorate (Prime Minister)

Your tax domicile is in France and you have made a gain by selling a security (a share or a bond for example)? You have to pay a tax on that capital gain the year after the sale.

If you made a profit by selling a title (for example, a share or obligation) that you own, you will be taxable on the gain realized.

Certain capital gains are exempt, under conditions, in particular in the following cases:

The added value taxable is the gain you make by selling a financial security.

That's the difference between:

  • Purchase price of the security
  • Sale price of the security

If you realize a loss, we're talking about loss of value.

The loss may be deducted from a gain of the same nature, under certain conditions.

If you have not realized a capital gain, the loss is carried over to the capital gains of the following 10 years.

Example :

In 2022, you sold "A" securities that enabled you to gain €3,000, and "B" titles that caused you to lose €4,000.

You are therefore subject to a loss of €1,000 (€3,000 - €4,000).

This loss can be deducted from your 2022 earnings, or from 2023 if you had no earnings in 2022.

In general, the financial institution that manages your securities calculates your capital gains and losses.

They give you a summary of your situation to complete your tax return.

The capital gain realized shall be subject to the single flat-rate levy at the rate of 30% (12.8% income tax and 17.20% of social security contributions).

However, you can choose progressive income tax schedule.

The taxable capital gain must then be added to your other income on your tax return.

The overall amount is then subject to the progressive scale.

You will also have to pay the 17.20% of social security contributions.

FYI  

if you opt to apply the progressive scale and you have acquired the titles before the 1er january 2018, you can benefit from a abatement for the duration of detention. In this case, your taxable capital gain will be reduced by value of the reduction. On the other hand, social security contributions will apply to the entire capital gain, including the deduction.

You have to report your earnings with income in the year you sold the security.

Generally, the financial institution that holds your securities provides you with a summary of your situation to complete your tax return.

You can refer to the supporting documents submitted by the financial institutions (form 2561 TER):

Summary declaration of transactions in transferable securities and income from movable capital

Tax returns via Internet is required if your principal residence is equipped with internet access and you are able to file your return online.

For 2023, the tax return is complete.

The 2024 income tax return for 2023 will begin in April 2024.

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