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European capital gains tax rates vary significantly across countries, with some nations maintaining tax exemptions while others levy high rates on long-held listed shares. As of March 2025, several changes have reshaped the capital gains tax landscape across the European OECD countries.
Highest & Lowest Capital Gains Tax Rates in Europe (2025)
| Country | Top Capital Gains Tax Rate | Additional Notes |
|---|---|---|
| Denmark | 42.0% | Highest in Europe |
| Norway | 37.8% | Includes 1.72x multiplier before taxation |
| Netherlands | 36.0% | Tax based on net asset value |
| Spain | 30.0% | Increased from 28% in 2025 |
| Sweden | 30.0% | – |
| United Kingdom | 24.0% | Increased from 20% in 2025 |
| Romania | 1.0% | Lowest taxed country |
| Moldova | 6.0% | Taxed at 50% of PIT rate |
| Bulgaria | 10.0% | Flat personal income tax (PIT) rate |
| Exempt Countries | 0.0% | Belgium, Cyprus, Czech Republic, Greece, Luxembourg, Malta, Slovakia, Slovenia, Switzerland, Turkey |
European Capital Gains Tax Averages & Comparisons
| Region | Average Capital Gains Tax Rate |
| European OECD Countries | 16.4% |
| EU Member States | 17.6% |
| U.S. (Weighted Average) | 25.4% (varies by state) |
| U.S. (Highest – California) | 33.3% |
| U.S. (Lowest – Tax-Free States) | 20.0% |
Recent & Upcoming Changes (2025-2026)
| Country | Change | Effective Year |
| Latvia | Increased from 20% to 25.5%, with an additional 3% for high-income earners | 2025 |
| Netherlands | Increased tax rate from 33% to 36% | 2024 |
| Portugal | Introduced stepwise tax exemption, reducing long-term capital gains to 19.6% | 2024 |
| Spain | Increased top rate from 28% to 30% | 2025 |
| United Kingdom | Increased top rate from 20% to 24% | 2025 |
| Estonia | Introducing 2% defense tax on personal income, increasing capital gains tax from 20% to 22% | 2026 |
Understanding Capital Gains Tax in Europe
Capital gains tax structures differ by country, with some nations applying flat rates, while others use progressive tax brackets or holding period-based exemptions. Taxpayers should consider:
- Holding period exemptions (e.g., Slovakia, Slovenia, Turkey).
- Additional surtaxes in some countries (Germany, France, Latvia).
- Special conditions for high-income earners (e.g., France’s 4% additional tax).
What’s Next?
With increasing fiscal pressures, several European governments are reviewing capital gains tax policies. Investors should stay informed about potential future changes in tax legislation that could impact long-term investment strategies.
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