How capital gains tax works in France
Most capital gains on shares, funds and similar securities earned by French residents fall under the prélèvement forfaitaire unique. From 2026 the standard combined PFU is 31.4%, made up of 12.8% income tax and 18.6% social levies. Taxpayers may elect the progressive income-tax scale instead if that produces a lower overall bill.
Real estate is different. Taxable property gains are generally subject to 19% income tax plus social levies, with separate holding-period allowances that can fully exempt the income-tax portion after 22 years and the social-levy portion after 30 years. A principal residence is usually exempt.
Crypto and other digital assets are commonly taxed under the securities-style PFU framework for private individuals when they produce taxable disposal gains, though professional trading can be recharacterised. Exit tax can also catch unrealised gains when a resident leaves France with large shareholdings.
Tax rates at a glance
- Securities PFU
- 31.4%2026
- 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
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsCrypto holdersProperty ownersHigh earnersFamily offices
Watch out for
- The PFU default is not always best. Households with lower marginal brackets sometimes prefer the progressive election, especially where older shareholding allowances still matter.
- Property is not taxed like listed shares. The 19% real-estate rate, social levies, surtax on large gains and 22/30-year tapers all need a separate calculation.
- Leaving France can trigger exit tax on unrealised gains when shareholdings cross the value or ownership thresholds, with deferral possible only in qualifying cases.
- Foreign withholding tax, PEA wrappers and professional-versus-private characterisation can change the final answer even when the headline rate looks simple.
Frequently asked questions
Does France tax capital gains?
Yes. Securities gains are usually taxed at the 31.4% PFU from 2026, while real-estate gains follow a separate 19% income-tax regime plus social levies.
Are crypto gains taxed in France?
Often yes for private disposals under the flat-tax style framework, unless a different regime or professional recharacterisation applies. Check the exact asset, frequency of trading and filing position.
Are stock market gains taxed in France?
Yes for most resident investors. The default is the PFU, with a progressive-scale election available when that produces a better result.