Capital Gains, Dividends, and Loss Offsetting

The universal rule applies in France: as long as you have not sold an asset, you would not owe tax on its appreciation. The gain (Plus-value) only crystallises at the moment of sale.

Treatment of gains:

• Capital gains: The difference between the sale price and the purchase price. They would be taxed under the PFU at 30% by default in the year the sale takes place.
• Dividends and interest: These are periodic income items. Your French bank or broker would automatically apply 30% before crediting the amount to your account. If you use a foreign broker, you would receive the gross amount and would need to declare it to pay the 30%.

Loss offsetting (Moins-values):

• If you sell shares at a loss, you could use that moins-value to reduce the gains you have realised by selling other shares in the same year.
• If your losses exceed your gains, the surplus is not lost: you could carry it forward and use it to offset gains over the following 10 years.