Holding periods and tax: how a tax-free date works
In some countries a gain on shares is not taxed if the shares were held long enough. The rule is simple in outline and full of details. This guide explains how the tax-free date is counted and why it differs between countries. It is general information about public rules, not tax advice.
Updated 15.10.2026
The basic rule
A holding-period rule says that a gain on listed shares is outside the tax once the shares have been held for a stated time, for example more than one year in some countries, more than three in others, or six months in a few. In many other countries no holding period makes a gain tax-free, and the gain is taxed at the rate of the country whatever the time held.
How the date is counted
The clock starts on the day the shares were acquired and the date from which the rule applies is that day plus the stated period. When shares were bought in several lots, each lot has its own date. A portfolio can therefore be partly past the period and partly not. Which lots are sold first changes which date applies, and the countries differ in how lots are matched.
Why it differs by country
The period itself: months or years, and whether a period of exactly that length is enough or it must be exceeded.
What counts: some rules apply only to shares, some to funds too, some only to a person and not to a company.
Conditions: some countries add limits such as an annual exempt amount or a share of the company held.
Which country's rule applies: it is the country where the investor is tax resident, not where the broker or the company is.
Other dates that matter
Apart from the holding period, an investor has dates for the tax year end, for filing a return and for paying. These differ by country as well, and a foreign broker usually does not file for the investor. A short page for each country lists these dates and the public sources behind them.
Take care with
- Rules change. Check the current text with the tax authority of your country.
- A rule on a page is general; your own case can have exceptions.
- This is information about dates and rules. It calculates no tax and files nothing.
Common questions
Only where the country's rule says so and its conditions are met. In many countries no holding period removes the tax.
The country where you are tax resident, not the country of your broker or of the company.
Each country has a short page of tax-year, filing and payment dates with the public sources it was read from.
In Allocaria
General information, not investment, tax or legal advice, and not a recommendation about any security. Allocaria is a decision-support tool; it places no orders and holds no money.