Last update: October 1, 2026. Rules checked for the 2026 tax year. Written by Sal Cocurullo, investor since 2006.
In Europe, options profits are taxed by your country of residence, not by the US or the exchange. In 2026 the rates are 26% in Italy, 26.375% in Germany, 31.4% in France and 19% to 30% in Spain. The US does not tax option gains of non-resident investors.
The rate is only half the story. Loss rules, foreign account forms and your broker’s tax handling decide what you really pay. This guide covers all three for Italy, Spain, Germany and France.
Options Taxes by Country: the 2026 Comparison
| Country | Tax on net profits | Losses | Foreign broker reporting |
|---|---|---|---|
| Italy | 26% as “redditi diversi” | Offset against other redditi diversi; carried forward 4 years | Quadro RT for gains, quadro RW for the account, IVAFE 0.2% a year on its value |
| Spain | 19% up to €6,000, 21% to €50,000, 23% to €200,000, 27% to €300,000, 30% above | Offset against capital gains, then up to 25% of savings income; carried forward 4 years | Gains in the annual Renta; Modelo 720 if foreign accounts exceed €50,000 |
| Germany | 25% + 5.5% solidarity = 26.375% (plus church tax if due) | Fully offsettable since the 2024 Annual Tax Act; €1,000 saver allowance | Anlage KAP in the annual return |
| France | 31.4% flat tax (12.8% income tax + 18.6% social charges) | Offset against gains of the same nature; carried forward 10 years | Form 2074 for gains, form 3916 for each foreign account |
Individual resident investors trading on their own account, not as a business. General information, not tax advice. France: PFU rate confirmed by Service-Public in February 2026.
Does the US Tax My Options Profits?
No. The US does not tax capital gains of non-resident investors, and option profits are capital gains. This holds for options on US stocks, ETFs and indices traded on US exchanges such as the CBOE. Your W-8BEN still matters: it covers dividends on any shares you receive after an assignment.
Dividends are a different case, with US withholding of 15% or 30%. I explain them in how to avoid double taxation on US dividends.
How Each Country Treats Options Losses
Options traders lose on many trades and win on some. How long a loss stays usable decides your tax over several years, more than the headline rate.
Germany: the €20,000 loss cap is gone
From 2021, German law let options losses offset only €20,000 of options gains per year. The Annual Tax Act 2024, published on December 5, 2024, removed the cap and the separate loss pot for all open cases. Options losses now offset other capital income in full, except gains from selling shares.
Italy: losses only meet “redditi diversi”
Options gains and losses are “redditi diversi”. A loss can offset options, share and CFD gains for four years. It cannot offset dividends or ETF income, which are “redditi di capitale”. An options loss left unused for four years is lost.
Spain: a 25% bridge to dividends and interest
Options results are capital gains or losses in the savings base. A net loss first offsets other capital gains. The rest can offset up to 25% of dividends and interest, and carries forward for four years.
France: 10 years for losses of the same nature
Options gains on a securities account (CTO) are taxed under the 31.4% flat tax by default. Losses offset gains of the same nature in the same year, and the excess carries forward for 10 years.
Options Tax Calculator
Enter your options gains and losses for the year. This is a simulation of the general rules above, for an individual resident with no other capital income. It is not tax advice.
Rules used: Italy 26%; Spain progressive savings brackets; Germany 26.375% after the €1,000 saver allowance, no church tax; France 31.4%. Simulation only.
Broker Tax Policies: Who Files for You?
The same trade creates very different paperwork depending on where your broker is based. A domestic broker usually calculates and withholds the tax. A foreign broker sends you an annual statement and leaves the return to you.
Most brokers offering US exchange options to Europeans are foreign for most readers: Interactive Brokers (Ireland), Saxo (Denmark) and Freedom24 (regulated in the EU). Expect to file yourself. Ask for an annual report with each trade converted to euros at the exchange rate of the trade date: it saves hours at tax time.
Checklist before your first options trade
Check whether your broker withholds tax in your country, or only sends a statement.
Download the annual report in euros, or keep the exchange rate of each trade date.
Note the foreign account form you need: quadro RW in Italy, Modelo 720 in Spain above €50,000, form 3916 in France.
Track losses year by year: in Italy and Spain they expire after four years.
The brokers, their options fees and contract access are compared in my ranking of options trading platforms in Europe. If you are new to options, start from options trading for beginners and how to trade US options from Europe.
Investments in securities and other financial instruments always involve the risk of loss of your capital. The forecast or past performance is no guarantee of future results. It is essential to do your own analysis before making any investment. This is an affiliate link: RevenueLand may earn a commission at no extra cost to you.
Common Mistakes Options Traders Make at Tax Time
| Mistake | Consequence | Fix |
|---|---|---|
| Reporting only closed winners | Losses on expired options are forgotten | Expired worthless options are losses too: include them |
| Using the year-end exchange rate | Wrong euro gain on USD trades | Convert each trade at the rate of its own date |
| Ignoring assignment | The premium ends up in the wrong place | An assigned option adjusts the cost or price of the shares |
| Forgetting the foreign account form | Penalties, even with no tax due | File quadro RW, Modelo 720 or form 3916 as required |
| Letting losses expire | Paying tax you could have offset | Track the carry-forward deadline each year |
✅ Recap: Options Trading Taxes in Europe 2026
Rates: Italy 26%, Germany 26.375%, France 31.4%, Spain 19% to 30%. The US takes nothing on option gains of non-residents.
Losses: no time limit in Germany since the 2024 reform, 10 years in France, 4 years in Italy and Spain.
Paperwork: foreign brokers leave the return to you, plus a foreign account form in Italy, Spain and France.
Disclaimer. This article is general information about tax rules in force in 2026 for individual investors. It is not tax or investment advice, and I am not a tax advisor. Options involve a high risk of loss. Rules depend on your situation and can change: check with your tax office or a qualified advisor before filing. Full disclaimer.
FAQ: Options Trading Taxes in Europe
How are options taxed in Europe?
Your country of residence taxes net options profits. In 2026 the rate is 26% in Italy, 26.375% in Germany, 31.4% in France and 19% to 30% in Spain. The US does not tax option gains of non-residents.
Do I pay US tax on US stock options?
No. Option profits are capital gains, and the US does not tax capital gains of non-resident investors. US withholding applies only to dividends on shares you hold.
Is the €20,000 options loss limit still in force in Germany?
No. The Annual Tax Act 2024 removed it for all open cases. Options losses now offset other capital income in full, except gains from selling shares.
Can I offset options losses against dividends?
It depends on the country. Germany allows it. Spain allows it up to 25% of dividends and interest. Italy does not: options losses only offset “redditi diversi”. France allows offsets only against gains of the same nature.
Does my broker pay the tax for me?
A domestic broker usually does. Foreign brokers such as Interactive Brokers, Saxo and Freedom24 generally send an annual statement and leave the return to you, together with the foreign account form your country requires.
About the author: Sal Cocurullo has invested his own money since 2006. How I test and rank brokers.
