Income tax - Capital gains on securities

Verified 15 April 2026 - Public Service / (Prime Minister)

Your tax domicile is in France and you have made a profit by selling a security (a share or a bond for example)? You must pay tax on this capital gain in the year following the sale. We tell you what you need to know.

If you have realized a capital gain by selling a title (share or bond for example) that you own, you are taxable on gain realized.

Some capital gains are exempt, subject to conditions, in particular in the following cases:

The taxable capital gain is the gain you make by selling a financial title (talking about transfer for consideration).

This is the difference between:

  • Purchase price of the security
  • Selling price of the security.

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

Example :

In 2025, you sold "A" securities that allowed you to get a gain of €3,000, and "B" headings that caused you a loss of €4,000.

You therefore suffer a loss of value of €1,000 (€3,000 - €4,000).

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

You cannot deduct your capital losses on securities from your overall income.

If you have suffered capital losses, you can deduct them from capital gains of the same nature realized during the taxation year.

You must deduct all the capital losses for the year, up to the limit of the capital gains you realized for the same year.

If you have not realized a capital gain or if you still have a surplus of capital loss, you can deduct it from the capital gains you will realize over the next 10 years.

Please note

You must deduct from your capital gains first the capital losses of the taxation year, then the carry-forward capital losses, starting with the oldest years.

Example :

In 2025, you suffered a loss of €1,000.

This loss can be deducted from your 2025 earnings.

If you had no gain in 2025, this capital loss can be deducted from your 2026 earnings.

If you do not make any gains in 2026, this loss can be deducted from your 2027 gains.

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

He gives you the summary of your situation to complete your tax return.

The capital gain realized is subject to single flat-rate levy at the rate of 31.4% (12.8% of income tax and 18.6% from social levies).

However, you can choose the progressive scale of income tax.

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 18.6% from social levies.

Please note

For your 2026 income (to be reported in 2027) and those of subsequent years, you may waive your option for the progressive scale (in the complaint period or under control), if it is ultimately unfavorable to you.

If you opt for the application of the progressive scale and you acquired the securities before 1er January 2018, you can benefit from a abatement for length of detention.

In this case, your taxable capital gain will be reduced by value of the allowance.

On the other hand, social security contributions will apply to the entire capital gain, including the deduction.

You must declare your winnings with income for the year where you made the sale of the security.

In general, the financial institution that holds your securities gives you the summary of your situation to complete your tax return.

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

Consolidated declaration of transactions in securities and income from movable capital

The declaration of income via the internet is mandatory if your main residence has internet access and you are able to file your declaration online.

The 2026 return of 2025 income is complete.

The 2027 2026 tax return will begin in April 2027.

The 2026 2025 income tax return is complete.

The 2027 2026 income tax return will begin in april 2027.

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