Synopsis: India’s LTCG rates are competitive compared to other countries, and align well with international standards, making it an attractive destination for both domestic and international investors. This article highlights India’s LTCG and compares it with other countries around the globe.
Capital gain tax is levied when an individual earns a profit by selling one of his/her capital assets, such as stocks, mutual funds, bonds, collectables such as artwork, residential plots and other investments. Long-Term Capital Gain (LTCG) tax is charged when a capital asset is sold after 12 months (for listed assets such as stocks, bonds and mutual funds) and 24 months (for unlisted assets such as property, gold, debt mutual funds, etc.) in India.
Comparison of Tax Rates
If you are an investor planning to invest in a different country, you need to keep its taxes in mind. Different countries have different capital gain tax and they have different exemption limits. Here is a comparison of the Long-Term Capital Gain Tax across various countries:
| Countries | Tax rates and other information regarding the tax |
| India | 12.5% with exemption limit of ₹1,25,000 |
| Turkey | If sold within 5 years -15 to 40% (Increases progressively as per income tax)If sold after 5 years- Exempt |
| Spain | 30% for residents and 19% for non-residents |
| France | 30%, but for exceptionally high earners it is 34% |
| Germany | 26.375% plus church tax if applicable |
| Italy | 26%, except Italian government bonds and certain whitelisted foreign government bonds |
| Israel | 25%. 30% if you are a substantive shareholder (holding at least 10% of control of the company) |
| UK | For a basic rate taxpayer is at 18%. The higher rate is 24% for higher rate tax payer |
| Brazil | 15 to 22.5% based on the asset sold. If you are a resident of a Tax-haven country: 25% |
| Japan | Gains from sale of stock- 20.315%Gains from sale of property- 39.63% |
| USA | 0% for low-income earners,15% for mid-level earners, and 20% for high earners |
| China | 20% |
| South Africa | 18% for individuals and 21.6% for companies |
| UAE | Does not have capital gain tax |
| Singapore | Does not have capital gain tax |
Investors exploring global tax-friendly jurisdictions often also seek guidance from a team of accountants in Malta for international tax planning and compliance. We recommend using Professional Services to better understand cross-border taxation and investment structures.
Investors exploring global tax-efficient structures also consider the company incorporation guide in Ireland. We recommend checking professional services for setup guidance, as Ireland offers a competitive standard corporate tax rate, which is attractive for investors.
Also read: Top 7 Indian States with the Costliest Stamp Duty Charges in 2026: See Where You’ll Pay More
India’s Long term Capital gain tax is low compared to other countries, even though it was increased a few years ago. Most of the countries have a moderate tax rate, except for countries like France and Spain, where they charge LTCG more if you are rich. Singapore and the UAE don’t have capital gain tax and are used as tax havens by many individuals. They tend to attract more investment because of their no-tax policy.
As an investor, you need to be aware of the taxes of the countries you are going to invest in. By comparing these taxes, you will be able to strategically plan your investments across the world.
Written by Sagar V M
