Trading taxes
What the tax authority takes is a very real part of your return, and almost nobody plans for it. Here are the general concepts to understand how your trades are taxed. Important notice: this is education, NOT tax advice — rules change and depend on your country and situation.
By the TradingCalculator.Pro team · Updated on · About us
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How it's taxed: the basics
In general you are only taxed on realized gains: while you don't sell, there is no tax (unrealized gain). When you close at a profit, the difference between sell and buy price is the taxable base. Dividends and interest are taxed separately, usually as investment income. The key: distinguish realized from unrealized.
Example: Spain
In Spain, trading gains go to the IRPF 'savings base', with progressive brackets (about 19% up to €6,000, rising in bands to ~28% for the highest figures). You can offset losses against gains. Watch the 'two-month rule': if you rebuy the same security within 2 months, you cannot count that loss. Figures and brackets change every year.
Short vs long term
In some countries the holding period changes the tax a lot. The US is the classic example: selling within 1 year is taxed as ordinary income (up to ~37%), and after 1 year as long-term capital gains (0/15/20%). Other countries (like Spain in the savings base) don't distinguish by term. Knowing your case can change your net a lot.
Offsetting losses
Realized losses are not wasted: they usually offset your gains of the same type, and many countries let you carry the excess forward to future years (in Spain, up to 4 years). 'Tax-loss harvesting' means realizing losses before year-end to cut the bill, respecting the rebuy rules. Don't leave money on the table by failing to report them.
Notice: not advice
This module is informational and general. Tax laws change every year, vary enormously between countries and depend on your personal situation (residence, instrument type, account used). Before making decisions with tax impact, consult a licensed tax advisor or your country's tax authority. Don't act on what you read here alone.