Full Definition
Capital Gains Tax (CGT) is levied on the profit realised when a capital asset is sold for more than its acquisition cost. Rates and exemptions vary widely: the US applies 0–20% depending on holding period; the UK charges 10–20%; France uses a flat 30% PFU; many countries like UAE and Singapore have no CGT at all. Long-term holdings (>1 year) typically receive preferential rates. Indexation allowances and primary-residence exemptions can significantly reduce the bill.
Global Rates at a Glance
France
30%
Capital Gains Tax
Germany
26.4%
Capital Gains Tax
United States
20%
Capital Gains Tax
United Kingdom
24%
Capital Gains Tax
Singapore
0%
Capital Gains Tax
Portugal
28%
Capital Gains Tax
Switzerland
0%
Capital Gains Tax
Key Facts for Expats & Digital Nomads
CGT planning is most impactful for those selling businesses or significant equity. Establishing residency in a zero-CGT jurisdiction (UAE, Singapore, New Zealand) before a major exit can be highly valuable — but requires genuine relocation well in advance. Exit tax rules mean you may need to crystallise gains before departing Germany, the US, or France.
Frequently Asked Questions
What is Capital Gains Tax?
A tax on the profit from selling an asset (stocks, property, crypto) above its purchase price. Capital Gains Tax (CGT) is levied on the profit realised when a capital asset is sold for more than its acquisition cost. Rates and exemptions vary widely: the US applies 0–20% depending on holding period; the UK charges 10–20%; France uses a flat 30% PFU; many countries like UAE and Singapore have .
Which countries have the lowest Capital Gains Tax?
Zero CGT countries: UAE, Singapore, New Zealand (most assets), Switzerland (most assets), Belgium (most assets), Hong Kong, Cayman Islands. Mid-range: UK 10–20%, US 0–20% long-term. France applies a flat 30% (PFU).
How does Capital Gains Tax affect expats and digital nomads?
CGT planning is most impactful for those selling businesses or significant equity. Establishing residency in a zero-CGT jurisdiction (UAE, Singapore, New Zealand) before a major exit can be highly valuable — but requires genuine relocation well in advance. Exit tax rules mean you may need to crystallise gains before departing Germany, the US, or France.
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Disclaimer: This information is for educational purposes only and does not constitute tax advice. Tax laws change frequently. Consult a qualified tax professional before making any decisions.