📈 Capital Gains Tax France vs Spain Equity 2026

No. France abolished holding period abattements for shares when it introduced the PFU (Prélèvement Forfaitaire Unique) in 2018. Previously, shares held for 2+ years benefited from a 50% abattement reducing the taxable gain. Since 2018, the 30% PFU applies to all share gains regardless of how long the asset was held. The only remaining option is electing the progressive rate instead of PFU, which may produce a lower tax for lower-income investors.

Spain's government introduced two new IRPF savings base tranches in 2024-2025 fiscal reforms: 27% on gains between €200.000 and €300.000, and 30% on gains above €300.000. Previously, Spain's top CGT rate was 23% on gains above €200.000. These new tranches bring Spain's top CGT rate to 30%. matching France's PFU for very large gains. The reforms were part of a broader progressive tax package targeting higher wealth levels. For gains under €200.000, Spain remains more efficient than France.

Yes. French taxpayers can elect the barème progressif (global progressive income tax scale) instead of PFU if their marginal income tax rate produces a lower overall result. The election must apply to ALL investment income in that tax year. you cannot selectively apply it to some income and PFU to other. For a retiree with modest total income, their marginal income tax rate on investment gains might be 11%. plus 17,2% social contributions = 28,2% versus PFU 30%. The election saves 1,8 percentage points. The calculation requires modelling all income sources and a French tax adviser should perform this analysis annually.