2025 Capital Gains tax rates in Europe
Denmark has the highest capital gains tax rate of all countries, at 42 percent. Norway has the second highest top capital gains tax, at 37.8 per cent. The Netherlands follows at 36 percent.
Several European countries do not levy capital gains taxes on the sale of long-held shares. Belgium, Cyprus the Czech Republic Georgia, Greece, Luxembourg Malta, Slovakia, Slovenia and Switzerland are among those that do not levy capital gains taxes on the sale of long-held shares. The average capital gains tax rate across EU Member States is 17.6 percent. Across EU Member States, the average lies at 17.6 percent.
For comparison, the population-weighted average of combined state and federal capital gains tax rates for the 50 US states and the District of Columbia lies at 25.4 percent in 2025, with rates ranging from 20 percent in states without a state capital gains tax to 33.3 percent in California.
Notable Changes
Several European countries have changed their capital gains tax rates in the last year or are planning to do so. Latvia increased its
flat taxes. An income tax is called a “flat rate” when it is applied to all taxable income, regardless of the income level or assets.
In 2025, the tax rate on capital gains was increased from 20 to 25,5 percent. A 3 percent additional tax rate will be introduced for individuals with high incomes. The Netherlands increased their tax rate on box three income from 33 percent to 36 percent in the year 2024. Portugal introduced a tax exemption in 2024. A tax exemption is a way to exclude certain income, revenue or taxpayers from paying tax. The Internal Revenue Service (IRS) grants tax-exempt status to nonprofits that meet certain requirements. This allows them to avoid paying income tax.
Tax rates on long-term capital gain income will be reduced to 19.6 percent for capital gains income up to 30 percent if held for more than eight years. The top capital gains rate in Spain was increased from 28 to 30% starting in 2025. The United Kingdom increased its top tax rate on capital gains from 20 to 24 percent from 2025.Estonia is set to introduce a 2 percent defence tax on personal income, increasing its capital gains tax rate from 20 to 22 percent in 2026.Stay informed on the tax policies impacting you.
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