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I believe the capital gain would be taxed at 27% (16% capital gain tax + 11% social tax).

Even without "protected accounts", you have two ways to pay less or zero tax:

  • if you sell less than 20 000 euros per year of stock, the tax plus social tax rate is exactly zero, so if you rebalance and/or get out "slowly", no tax at all. Note that there is an idiotic gap effect, at 20 001 euros you pay 27% on capital gains. If you can justify a special event like unemployment you may go above 20 000 euros but you have to negociate. After tax and couting social help median yearly income in France is a bit less than 25 000 euros.

  • if you keep your stock after 6 year the capital gain tax is 21.7%, 7 year 16.4%, eight year and after 11% (new law).

This is uncommon as most people just use the protected accounts (you can put up to several thousand euros in there without really annoying constraints).

(I'm just using google.fr here, I'm not a specialist...)

by Laurent GUERBY on Sat Mar 31st, 2007 at 01:44:44 PM EST
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