The new “solidarity contribution” tax” introduces an annual tax-free allowance of €10,000 on capital gains from financial investments. This tax-free allowance is intended to protect smaller investors from excessive tax burdens and is to be adjusted annually in line with inflation.

Progressive tax structure for large investments

A progressive tax structure will apply to large investments, particularly those with significant shareholdings (at least 20% in a company). Capital gains up to €1 million will remain untaxed, while gains between €1-2.5 million will be taxed at 1.25%, €2.5-5 million at 2.5%, €5-10 million at 5% and gains over €10 million at 10%.

Deductibility of capital losses

An important aspect of the reform is that capital losses within the same year can be deducted from taxable capital gains. In conjunction with the indexed allowance, this offers investors a degree of protection against market fluctuations and inflation.

Navigating the New Landscape with Eight Advisory

In today’s changing tax landscape, reasonable valuations are critical for capital gains taxation, compliance and financial planning, especially as historical values remain tax-free with proper documentation. Eight Advisory provides clarity by combining in-depth valuation and modelling expertise with tax insights to offer holistic solutions. Leveraging local and global knowledge through our international network, we ensure seamless, value-added support while maintaining independence and ensuring confidentiality. With our passion for excellence and our results-orientated approach, we enable you to navigate these complex issues with confidence and success.

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