Capital gains of shares, PEPs and ISAs etc

These are declared in total and are, by default, subject to the PFU flat tax or, if you select this option for all investment income, under the ordinary tax bands after reductions of the taxable gain for length of ownership.

In the case of foreign structures such as UK ISAs you must declare all shares sold within them as capital gains as the tax-advantaged ‘wrapper’ is not recognised by France.

Choose Plus-values et gains diverses under the online rubriques and also Revenus de capitaux mobiliers; these correspond to sections three and two of the paper forms.

The allowance for length of ownership only applies to shares bought before 2018; it applies to income tax, not social charges and is 50% of the taxable gain for shares owned for between two and eight years, then 65% after eight years.

To opt for taxation under the ordinary bands (which applies to all investment income if chosen) select box 2042 2OP.

Property capital gains are declared on the 2048-IMM, which is filled in by the notaire or the taxpayer for foreign property sales. Note that there is also a box, 3SE (2042C) labelled as being for property or share capital gains of non-residents.

The gain, unless tax-exempt, should also be carried over to the 2042C, 3VZ.

It will be accounted for in your revenu fiscal de référence (used for eligibility for certain benefits etc) but will not affect bands applied to other income or your PAS rate.

Cryptocurrency gains are calculated on form 2086 and gains or losses also declared on 2042C 3AN or 3BN.

Note that formerly these were subject to ‘flat tax’ and could not be included in an option for the bands to be applied to investment incomes. It is now possible to opt for the bands for this specific income, using box 3CN (2042C).

2042C section 3

Section 3 is for capital gains on shares.

Enter the gains in box 3VG.

If you opted for taxation under the income tax bands and wish to claim a reduction of the taxable gain for length of ownership, then you declare the capital gains before the reduction and enter the amount of the reduction is in 2042C 3SG.

The figure in 3VG should be your capital gains after deduction, if applicable, of capital losses for the year in question (2025) and after that for the previous ten years (if you still have amounts carried over that you have not used), using the oldest first.

Capital losses can be deducted for their gross value, against gross capital gains, within the limit of the capital gains.

If, after setting the capital losses of the year 2025 against the capital gains of the year 2025, there is a remaining capital loss amount, you may declare this in 3VH to reduce any similar gains you declare in the next 10 years, after which time the carrying forward of the loss ceases.

In the event of having capital losses carried over from previous years, you should indicate the details of these (between 2015 and 2024) and, if relevant, how you have made use of them to reduce 2025’s gains.

This is done on form 2074 (a specific form for detailed calculation of capital gains on moveable assets) if you are completing this form, or otherwise on 2074-CMV (a calculation sheet only used for the offsetting of capital losses against capital gains).

These capital losses of previous years should not be mixed up with those of the tax year in question, inserted in box 3VH.

Where gains are from French shares accounts, such as compte titres or Plans d’épargne en actions (PEA) you should have a certificate from the bank showing the sums to be entered and in which boxes.

Taxable gains from a PEA, due to early withdrawal, have to be declared in a special section of the 2042C (box 3VT).

If gains are foreign, they should also be declared in 2047, section 3.

Buy values should be at the euro rates on the day of purchase (for pre-euro era shares, you can use the rate on the date the euro came into effect, January 1, 2002).

Form 2074-ABT is a sheet for calculating your allowance for length of ownership in the case you opt for the ordinary tax bands (it is only used if you have no capital losses to account for).

Note: If you declare gains such as those held in another country and for which you do not have a French bank slip detailing what to declare, officially you should also complete the 2074 (this is waived if you include a note from a financial professional listing your gains).

Some financial professionals say it is rarely used by expatriates in France, especially if their finances are not complex and only a few shares are sold.

Generally, they say, the main forms allow for sufficient information and as long as tax offices feel you are declaring honestly, they are satisfied irrespective of any sheet that your financial expert may send.

However, keep records of your dealings in case of questions.

US citizens, who remain taxable in the US on worldwide gains, should check their position under the France–US tax treaty. However, typically, capital gains on shares will be taxable in France, with the US also assessing them but allowing a credit for French tax.