France vs Germany taxes (2026): income, CGT and wealth tax

France vs Germany tax rates at a glance

Tax	🇫🇷 France	🇩🇪 Germany
Income tax	Tax-free band: EUR 11,600 Entry rate: 11% Top rate: 45% Exceptional high-income contribution: 3% / 4% Employment social charges: Material Investment flat tax (PFU): 31.4%	Basic allowance: EUR 12,348 Entry rate: 14% Top rate: 45% Solidarity surcharge: 5.5% Church tax: 8% / 9% Employee pension, unemployment, health and care contributions: Capped
Corporate tax	Standard corporate tax: 25% SME reduced rate: 15% on first EUR 42,500 Social contribution on CIT: 3.3% IP Box reduced rate: 10% QDMTT / Pillar Two: 15%	Corporation tax: 15% Solidarity surcharge: 5.5% Trade tax base rate: 3.5% Trade tax effective range: 7% - 20.3% DMTT / Pillar Two: 15%
Capital gains tax	Securities PFU: 31.4% PFU income-tax component: 12.8% PFU social levies: 18.6% Real-estate income tax: 19% Full property IR exemption: 22 years Full property social exemption: 30 years	Securities gains tax: 25% Solidarity surcharge: 5.5% Church tax: 8% / 9% Saver allowance: EUR 1,000 / EUR 2,000 Private-sale holding period: 1 year / 10 years
Dividend tax	Resident PFU total: 31.4% PFU income tax: 12.8% PFU social levies: 18.6% Non-resident individual WHT: 12.8% Progressive election: Optional Common dividend allowance on progressive route: 40%	Dividend withholding tax: 25% Solidarity surcharge: 5.5% Church tax: 8% / 9% Annual saver allowance: EUR 1,000 / EUR 2,000
Wealth tax	General net wealth tax: 0% IFI threshold: EUR 1,300,000 EUR 800,001 to EUR 1,300,000: 0.50% EUR 1,300,001 to EUR 2,570,000: 0.70% EUR 2,570,001 to EUR 5,000,000: 1.00% EUR 5,000,001 to EUR 10,000,000: 1.25% Above EUR 10,000,000: 1.50%	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%
Inheritance / estate tax	Spouse / PACS partner: Exempt Children / parents: 5% - 45% Child allowance: EUR 100,000 Siblings: 35% / 45% Distant relatives / unrelated: 55% / 60%	Tax class I: 7% - 30% Tax class II: 15% - 43% Tax class III: 30% - 50% Tax-free allowances: EUR 20,000 - EUR 500,000
VAT / GST / sales tax	VAT: 20% / 10% / 5.5% / 2.1%	VAT: 19% / 7%

Who wins on each tax

Personal income taxTie

Both standard scales reach 45%, with important social charges and local burdens.

Corporate taxFrance

France's general corporate rate is 25%; Germany's combined corporation and local trade tax often approaches 30%.

Capital gains taxGermany

Germany generally taxes securities gains at 25% plus solidarity surcharge after a EUR 1,000 saver allowance; France generally applies a 31.4% PFU to securities gains, while French real estate has a separate 19% plus social-levy regime with holding-period allowances.

Wealth taxGermany

Germany has no current net wealth tax; France's IFI applies when net taxable non-professional real-estate wealth exceeds EUR 1.3 million, rather than to financial assets generally.

Inheritance taxTie

Both levy inheritance tax with relationship-based exemptions and rates.

The verdict

Germany is usually the more forgiving choice for private investors: securities income is generally taxed at 25% plus solidarity surcharge, against France's 31.4% PFU.

France and Germany both have a 25% corporate-tax headline, but German trade tax often lifts its combined business burden to about 30%.

Neither is a low-tax relocation destination; choose based on business, family and social-security realities rather than a marginal rate alone.

How to read this comparison

France and Germany are major European bases with substantial tax systems; the investment-income treatment is often the clearest dividing line.

Frequently asked questions

Is France or Germany better for investors?

Germany is often lighter on listed securities income. France may still suit investors whose assets, residence status or real-estate position fit its rules.