Forex Trading Tax by Country 2026

Flat withholding on capital income

One rate applies to investment income regardless of how much you make. The rate does not step up with the size of the gain, which makes the arithmetic simple but removes any low-earner relief. Where the broker is domiciled locally, the tax is often deducted at source; where it is passported in from another member state, it usually is not.

Germany

Forex trading profits are subject to the Abgeltungsteuer (flat tax) of 25% plus 5.5% solidarity surcharge and optional church tax, totaling approximately 26.375%.

Italy

Forex trading profits are taxed at a flat rate of 26% (imposta sostitutiva).

Poland

Forex profits are taxed at a flat 19% rate (podatek od zyskow kapitalowych).

Austria

Forex profits are subject to Kapitalertragsteuer (capital gains tax) at a flat rate of 27.5%.

Capital gains tax with an annual allowance

Profits are charged as capital gains, but a fixed slice of gains each year is exempt before any tax is due. The allowance is the difference that matters for smaller accounts — below it, nothing is payable; above it, the full band rate applies to the excess.

United Kingdom

In the UK, forex CFD profits are taxed as Capital Gains Tax (CGT) at 18% (basic-rate band) or 24% (higher/additional bands) above the £3,000 annual allowance, following the rate rise on 30 October 2024. Spread betting is tax-free for UK residents.

Ireland

Forex profits are subject to Capital Gains Tax (CGT) at 33%.

Progressive or banded scales

The rate rises with the size of the gain, or with total income, so two traders with identical profits can face different bills. Some of these regimes also let you elect between a flat option and the progressive scale, whichever produces the lower charge.

Spain

Forex profits are taxed as savings income (rendimientos del ahorro) on a progressive scale: 19% (up to EUR 6,000), 21% (EUR 6,001-50,000), 23% (EUR 50,001-200,000), 27% (EUR 200,001-300,000), and 28% (above EUR 300,000).

Denmark

Forex trading profits are taxed as capital income at 27% on gains up to DKK 61,000 and 42% on gains above that threshold.

Finland

Forex trading profits are taxed as capital income at 30% on gains up to EUR 30,000 and 34% on gains exceeding that threshold.

France

Forex profits are subject to the Prelevement Forfaitaire Unique (PFU/flat tax) of 30% (12.8% income tax + 17.2% social contributions).

Deemed return instead of realised profit

The charge is not levied on what the account actually made. A notional return is assumed on the assets held and taxed, which means a losing year can still produce a tax bill and an exceptional year can be undertaxed relative to the gain.

Netherlands

The Netherlands uses a unique wealth tax system (Box 3). Rather than taxing actual trading profits, the Dutch tax authority assumes a fictional return on assets and taxes this at 36% (2026, unchanged under the box 3 bridging law).

Exempt, or exempt until you are reclassified

A small number of jurisdictions do not charge gains on financial instruments at all, or exempt them so long as the trader is treated as a private investor rather than a professional. The exemption is conditional, and the conditions are assessed by the tax authority, not by the trader.

Switzerland

Capital gains from private forex trading are generally tax-free in Switzerland for most individuals, as they are considered private asset management. However, if the tax authority classifies a trader as a professional trader (based on frequency, leverage, and volume), profits become taxable as self-employment income at progressive rates.

Cyprus

Cyprus does not impose capital gains tax on profits from financial instruments (forex, CFDs, shares, bonds, derivatives). The 20% CGT applies only to immovable property in Cyprus.

Where the product itself is restricted

Tax is not the only variable. At least one jurisdiction in this index restricts distribution of the products to retail clients outright, which changes both where an account can be opened and how any resulting profit is characterised.

Belgium

Belgium has banned the distribution of CFDs, binary options, and forex to retail consumers since 2016 (Royal Decree). Belgian residents can only trade forex through non-Belgian entities, and capital gains from speculative trading may be taxed at 33% as 'diverse income'.

How many countries does this forex tax index cover?

This index covers 26 countries, each with its own dedicated forex and CFD tax page setting out the classification, rate, loss-offset rules, filing form and deadline. 26 of them carry a recorded headline treatment in the table above. Tax treatment depends on individual circumstances and can change. This is general information, not tax advice.

Is forex trading tax-free anywhere in Europe?

Capital gains from private forex trading are generally tax-free in Switzerland for most individuals, as they are considered private asset management. Cyprus does not impose capital gains tax on profits from financial instruments (forex, CFDs, shares, bonds, derivatives). Everywhere else in this index, leveraged forex and CFD profits are taxable in some form. Tax treatment depends on individual circumstances and can change.

Is UK spread betting really free of tax?

For most UK retail traders, spread betting profits are free of Capital Gains Tax, Income Tax and Stamp Duty. HMRC manual BIM22015 confirms betting wins are not taxable as trading income, and CG56105 confirms no chargeable gains arise from spread bets. The trade-off is that losses are not tax-deductible, and HMRC can treat systematic spread betting that forms your main income as a taxable trade (BIM22020). This is general information, not tax advice.

Are CFD profits and spread betting profits taxed the same way in the UK?

The main differences are tax and how losses are treated. UK spread betting profits are free of Capital Gains Tax (HMRC treats them as gambling), but spread-bet losses cannot be offset against tax. CFD profits are subject to Capital Gains Tax, yet CFD losses can be offset against other capital gains. Both are FCA-regulated, capped at 30:1 leverage on major FX pairs, with negative balance protection for retail clients.

Does my broker deduct the tax for me?

It depends on where the broker is established rather than where you live. A broker with a local entity in your country will often deduct tax at source; a broker passported in from another member state generally will not, leaving you to declare the profit yourself on an annual return. Your country page sets out which applies and which form to use.