Before You Start
- Basic understanding of capital gains taxation in your EU country (e.g., Germany, France, Netherlands, etc.)
- An active brokerage account with Trade Republic or DEGIRO
- Investments in UCITS ETFs (e.g., iShares Core MSCI World UCITS ETF, Vanguard FTSE All-World UCITS ETF)
- Access to your transaction and tax reporting history
- Awareness of your country’s tax-loss harvesting rules (e.g., wash-sale rules, deadlines)
Time needed: 30–60 minutes per tax event
What you'll need: Your broker login, a calculator or spreadsheet, and your national tax ID
EU tax loss harvesting with ETFs is a powerful, legal way for European investors to reduce their investment tax bill. By intentionally selling ETFs at a loss and offsetting these against gains, you can defer or even eliminate capital gains taxes—boosting your net returns over time. In this tutorial, you’ll learn exactly how to execute EU tax loss harvesting with UCITS ETFs on DEGIRO and Trade Republic as a European resident in 2026, with step-by-step instructions, country-specific notes, and real EUR-based examples.
If you’re new to the concept, see The Smart European's Guide to Tax-Loss Harvesting With UCITS ETFs (2026 Edition).
Step 1: Understand the Tax Rules in Your Country
What to do: Before you act, check the latest capital gains tax and tax loss harvesting rules for your country of residence. Each EU country has its own specifics:
- Germany: Tax-loss harvesting is allowed, but "wash-sale" rules (30-day repurchase ban) apply since 2025.
- Netherlands: No capital gains tax for individuals (Box 3 system), so harvesting is usually not relevant.
- France: Losses can be carried forward for 10 years, no strict wash-sale rule.
- Spain: Losses can offset gains, but repurchasing the same security within 2 months cancels the loss.
Why it matters: Tax loss harvesting only works if your country taxes capital gains and allows losses to be offset. The timing of re-buying similar ETFs also depends on local "wash-sale" regulations. If you ignore these, your harvested loss may be disallowed!
What can go wrong: Harvesting losses in a country without capital gains tax (e.g., Netherlands) is pointless. Repurchasing too soon in Germany, France, or Spain can invalidate your tax loss.
Pro Tip
Always download the official tax guide for your country and check for updates each year. EU tax rules change frequently—what worked in 2025 may not apply in 2026.
Step 2: Identify Harvestable Losses in Your ETF Portfolio
What to do: Log in to your DEGIRO or Trade Republic account and review your ETF holdings. Look for ETFs currently trading below your purchase price ("in the red").
- In DEGIRO: Go to Portfolio → View all ETFs. The "Result" column shows your profit/loss per position.
- In Trade Republic: Tap Portfolio → Select ETF → See "Performance" for current gain/loss.
Example: You bought 10 shares of iShares Core MSCI World UCITS ETF (IE00B4L5Y983) at €80 each (€800 total). The ETF is now €72 per share. Your unrealised loss is (€72 - €80) × 10 = –€80.
Why it matters: Only realised (sold) losses count for tax purposes. Identifying the right ETF(s) to sell is key to maximising your offset potential.
What can go wrong: Accidentally selling an ETF with a gain, or selling one that’s not tax-efficient to harvest (e.g., one you plan to keep for decades).
Pro Tip
Use a spreadsheet to track your ETF purchase prices and current values. This makes it easy to spot the best harvesting candidates, especially if you use multiple brokers.
Step 3: Sell the ETF to Realise the Loss
What to do: Place a sell order for the loss-making ETF on your broker platform.
- In DEGIRO: Click the ETF in your Portfolio → "Sell" → Enter number of shares (e.g., 10) → Confirm order. Review the estimated proceeds and fees.
- In Trade Republic: Tap the ETF in Portfolio → "Sell" → Input quantity → Review and confirm.
Expected outcome: After execution, you receive cash (minus fees) and your realised loss is recorded. For our example, you get €720 minus fees, and a realised loss of €80.
Why it matters: You must sell to "realise" the loss—simply holding a losing ETF does not generate a tax benefit.
What can go wrong: Selling at the wrong time (e.g., during a rebound) may reduce your loss. Selling the wrong ETF (e.g., a profitable position) creates a taxable gain instead of a loss.
Pro Tip
Set a price alert for your target loss level. Both DEGIRO and Trade Republic let you set alerts so you can act quickly if markets move sharply.
Step 4: Repurchase a Similar (But Not Identical) ETF
What to do: To maintain your investment exposure, buy a similar (not identical) ETF tracking the same index, but issued by a different provider. For example, if you sold iShares Core MSCI World UCITS ETF (IE00B4L5Y983), you could buy Xtrackers MSCI World UCITS ETF (IE00BJ0KDQ92) or Lyxor MSCI World UCITS ETF (LU1781541179).
- In DEGIRO: Search for the new ETF → Click "Buy" → Enter quantity (e.g., 10 shares) → Confirm.
- In Trade Republic: Tap "Search" → Enter ETF name/ISIN → Select → "Buy" → Confirm.
Country notes:
- Germany: Do not repurchase the same ETF for at least 30 days due to the wash-sale rule. Use a similar but different ETF to stay invested.
- France: No wash-sale rule, but using a different ETF is safer for audit purposes.
- Spain: Wait at least 2 months before buying the same ETF. Use an alternative ETF in the meantime.
Why it matters: Repurchasing the same ETF too soon can invalidate your tax loss, especially in Germany and Spain. Using a similar but different ETF maintains your market exposure.
What can go wrong: Accidentally repurchasing the same ETF (same ISIN) within the restriction window cancels your loss for tax purposes.
Pro Tip
Make a shortlist of alternative ETFs for each major index (MSCI World, S&P 500, etc.) before harvesting. This way, you can switch seamlessly without research delays.
Step 5: Record Your Trades and Prepare for Tax Filing
What to do: Download your transaction history from DEGIRO or Trade Republic after selling and buying. Note the dates, ISINs, quantities, and EUR amounts.
- DEGIRO: Go to "Documents" → "Transactions" → Download CSV or PDF for the relevant period.
- Trade Republic: Tap "Profile" → "Documents" → Download "Trade Confirmations" and "Annual Report".
Fill in your national tax form (e.g., Anlage KAP in Germany, Formulaire 2042 in France) with your realised losses and gains. Attach broker reports if required.
Important deadlines:
- Germany: File by 31 July 2027 for 2026 tax year.
- France: File between April–June 2027 (exact date varies by department).
- Spain: File by 30 June 2027.
Why it matters: Proper documentation is required to claim the loss. Incorrect or missing paperwork can lead to audits or rejected claims.
What can go wrong: Forgetting to download reports, missing the tax deadline, or entering incorrect amounts means you lose the benefit of your tax loss.
Pro Tip
Set calendar reminders for tax deadlines and download your broker documents immediately after each trade. Keep a backup in cloud storage for easy access at tax time.
Common Mistakes in EU Tax Loss Harvesting With ETFs
- Selling and immediately repurchasing the same ETF (same ISIN), triggering wash-sale disallowance in Germany or Spain
- Attempting to harvest losses in a country without capital gains tax (e.g., Netherlands)
- Neglecting to check for dividend or distribution events that can affect your taxable position
- Missing the annual tax filing deadline—your loss cannot be claimed after the window closes
- Not keeping thorough records, which can lead to rejected claims during a tax audit
Next Steps
- Read the parent guide for a full overview of tax-loss harvesting with UCITS ETFs.
- Explore how to start investing in European ETFs if you're building your portfolio from scratch.
- Review broker options with the best brokers for monthly dividend reinvestment in EUR.
- Set up a system to monitor your ETF positions and tax-loss harvesting opportunities at least quarterly.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always do your own research and consider consulting a qualified financial advisor before making investment decisions.