Long-Term Capital Gains
Profit from selling an asset held for a longer period, often taxed at preferential rates.
Long-term capital gains are profits from selling an asset held beyond a country's minimum holding period — frequently more than one year. To encourage long-term investment, many governments tax these gains at reduced rates compared with ordinary income or short-term gains. Several countries, including Singapore and Switzerland, exempt long-term gains on securities entirely, while others apply a flat preferential rate with exemptions for primary residences.
Examples
- US long-term gains are taxed at 0%, 15%, or 20% depending on income.
- Belgium generally does not tax long-term private capital gains on shares.