Unhurried.Money
Lesson 17 · Taxes on your gains

Your profit, minus what the taxman takes.

before you celebrate the chart, check the bill

§ 01

Two streams. Three countries.

Investing income comes in two shapes: a when you sell at a profit, and a when a company hands cash to shareholders. Spain taxes both together. The UK and US tax them separately, with allowances and tiers. Move the controls below to see what reaches your pocket, and how the same numbers land in each country.

ES

Spain

Both streams added together. Progressive scale: 19% / 21% / 23% / 27% / 30%. No annual allowance.

UK

United Kingdom

£3,000 capital gains and £500 dividend allowances. Above: 18% or 24% on gains, 8.75/33.75/39.35% on dividends, depending on your income tier.

US

United States

Long-term gains and qualified dividends share a 0/15/20% scale set by your taxable income. Short-term gains taxed as ordinary income. State tax extra.

Of every 100 in gains, what the taxman keeps

Same profit, three different bills.

Take a clean slice of capital gain (100 of currency, no allowances, no fancy structures). Here is roughly how much each country takes off the top, by tier.

ES
Spain
€100 →
Up to 6,000
19%
€19 to tax €81 kept
6,000–50,000
21%
€21 to tax €79 kept
50,000–200,000
23%
€23 to tax €77 kept
Over 300,000
30%
€30 to tax €70 kept
UK
United Kingdom
£100 →
Basic rate
18%
£18 to tax £82 kept
Higher / additional
24%
£24 to tax £76 kept
US
United States
$100 →
0% bracket
0%
$0 to tax $100 kept
15% bracket
15%
$15 to tax $85 kept
20% bracket
20%
$20 to tax $80 kept

Single filer, capital gains only, no allowances applied. ES uses progressive savings-income brackets; UK and US depend on your other income.

§ 02

See it for your own numbers

Country
0100.000
020.000
What you keep
80.1%
80%
19%
Net
€8415 · 80.1%
Capital gains tax
€1986 · 18.9%
Dividend tax
€99 · 0.9%
Capital gains tax
€1986
Dividend tax
€99
Total tax
€2085
Net kept
€8415
Effective rate: 19.9%
How the rate is built

Spain taxes capital gains and dividends together on the savings-income scale. The portion of your combined total that falls into each band is taxed at that band's rate, only the lit-up rows reach your numbers.

€0 – €6000
19%
€1140
€6000 – €50.000
21%
€945
The same numbers, three countries

How the same gain and dividend amounts land in Spain, the UK, and the US, at each country's default tier. Currency aside, the take-home percentages are directly comparable.

Spain
Selected
Net kept
€8415
Total tax
€2085
Effective rate
19.9%
Take-home
80.1%
80% kept20% tax
United Kingdom
Net kept
£8,820
Total tax
£1,680
Effective rate
16.0%
Take-home
84.0%
84% kept16% tax
United States
Net kept
$8,925
Total tax
$1,575
Effective rate
15.0%
Take-home
85.0%
85% kept15% tax
★ Worth memorizing

Long-term beats short-term, almost everywhere.

The single biggest tax decision most beginners face is whether to hold for more than a year. In the US it can drop your bill from up to 37% to 15%. In Spain and the UK the holding period itself doesn't change the rate, but the urge to costs you the , and that's almost always more expensive than the tax.