Forex Tax Guide: Germany, France, Spain & Italy

Germany applies the Abgeltungssteuer (flat withholding tax) to all capital income, including forex and CFD trading profits. The base rate is 25%, to which a 5.5% solidarity surcharge is added, producing an effective rate of 26.375%. Church tax members face an additional surcharge of 8–9% on the base 25%, raising the effective rate to approximately 27.8–27.9%.

German brokers (e.g. those regulated by BaFin) withhold this tax automatically on each realised gain. If you trade with a foreign broker, you must declare all gains in your annual income tax return using Anlage KAP (Kapitalertraege). The annual tax-free allowance (Sparerpauschbetrag) is EUR 1,000 per person (EUR 2,000 for jointly-filing spouses).

The EUR 20,000 Loss Cap: Abolished

From 2021 to 2023, Germany imposed a EUR 20,000 annual capon offsetting losses from forward transactions (Termingeschaefte) — covering CFDs, options, futures, and swaps — against gains from other capital investments, ring-fenced in a separate loss pot. After the Bundesfinanzhof (BFH) raised constitutional doubts, the Jahressteuergesetz 2024 (BGBl. I 2024 Nr. 387, published 5 December 2024) abolished the cap and the separate pot retroactively, for 2024 and all open cases. Derivative losses now offset all capital income without limitation, and any unused loss carries forward indefinitely. Traders affected in prior open years may be entitled to refunds via amended returns.

CFDs vs Spot Forex

Both CFDs and spot forex are classified as capital gains under the Abgeltungssteuer. There is no distinction in tax treatment between the two. Swap fees (overnight financing) are deductible as costs against trading profits. Spot forex held for more than one year does not benefit from the one-year holding period exemption that applies to physical assets — all realised forex gains are taxable regardless of holding period.

France taxes forex and CFD gains under the Prelevement Forfaitaire Unique (PFU), commonly known as the “flat tax”. Following the 2026 budget law, the PFU rate stands at 33.3%, composed of:

• 12.8% income tax
• 20.5%social contributions (prelevements sociaux), including CSG at 10.6% (raised from 9.2% by the 2026 Contribution Financiere pour l'Autonomie), CRDS at 0.5%, and other solidarity levies

Opting for Progressive Income Tax

Traders may elect to have their capital gains taxed at the progressive income tax scale instead of the 12.8% flat component. This is worthwhile if your marginal income tax rate is below 12.8% (i.e. your total taxable income is within the 0% or 11% bracket). The election applies to allcapital income for the year — it cannot be applied selectively. The 20.5% social contributions apply in both cases.

Filing and Declaration

Net annual gains are declared on form 2042-C as part of the annual income tax return, filed between April and June depending on your department. Gains and losses are netted at year-end. Net losses can be carried forward for up to 10 years and offset against future capital gains. Foreign broker accounts must be declared on form 3916 (declaration of foreign bank accounts). Failure to declare a foreign account carries a penalty of EUR 1,500 per undeclared account per year.

There is no distinction between CFDs and spot forex for tax purposes in France. Both are treated as plus-values de cessions de valeurs mobilieres (capital gains on securities). Active traders who derive their primary income from trading may be reclassified as BNC (Benefices Non Commerciaux), subject to progressive income tax and full social charges — though this reclassification is rare and depends on a case-by-case assessment by the tax authority.

Spain taxes forex and CFD profits as savings income (rentas del ahorro) under the IRPF (Impuesto sobre la Renta de las Personas Fisicas). The progressive brackets for the 2026 tax year (filed in 2027) are:

These rates are set at the national level and apply uniformly across all autonomous communities for savings income. Losses can be offset against gains in the same category and carried forward for four years. The annual tax return (Declaracion de la Renta) is filed between April and June, with a deadline of 30 June.

Modelo 720: Foreign Asset Declaration

Spanish tax residents who hold accounts with foreign brokers are subject to the Modelo 720 obligation. If the aggregate value of foreign financial assets exceeds EUR 50,000 at any point during the year, the assets must be declared by 31 Marchof the following year. The declaration is informational only — no tax is paid via Modelo 720 itself — but failure to file has historically carried severe penalties. The European Court of Justice struck down Spain's disproportionate penalty regime in January 2022 (Case C-788/19), but the filing obligation remains in force.

Subsequent filings are required only if any category of assets increases by more than EUR 20,000 relative to the last declaration. Traders who use only Spanish-domiciled brokers are not subject to Modelo 720.

Italy levies a flat 26% imposta sostitutiva (substitute tax) on capital gains from forex and CFD trading. There is no tax-free allowance: all realised gains are taxable from the first euro. Losses can be carried forward for four years and offset against future capital gains of the same category (redditi diversi di natura finanziaria).

Two Tax Regimes: Amministrato vs Dichiarativo

Italian traders can operate under one of two regimes:

• Regime amministrato: Available only with authorised Italian intermediaries (e.g. Fineco, Directa, Banca Sella). The broker withholds 26% on each realised gain and pays the tax directly. No further action is required from the trader.
• Regime dichiarativo: The default for traders using foreign brokers (e.g. eToro, Interactive Brokers, XTB). The trader calculates, declares, and pays the tax via the Modello Redditi PF, using Quadro RT for capital gains and Quadro RW for foreign asset monitoring. Payment is made via the F24 form.

Quadro RW & IVAFE

All foreign-held financial assets must be declared in Quadro RW of the tax return, regardless of value. This applies to every account held with a non-Italian broker. In addition, foreign financial assets are subject to IVAFE(Imposta sul Valore delle Attivita Finanziarie detenute all'Estero) at a rate of 0.2% of the year-end value. IVAFE is payable annually alongside income tax.

The filing deadline for the Modello Redditi PF is 30 Novemberof the year following the tax year. Advance payments (acconti) are due in June and November, calculated as a percentage of the prior year's tax liability. Traders who switch from a foreign broker to an Italian broker operating under regime amministrato can eliminate the Quadro RW and IVAFE obligations for future years.

EU residents who trade with brokers regulated in another member state face additional compliance considerations: