A capital gain is the profit you make when you sell an asset, like a share, property, or fund, for more than you paid. If you sell for less, you have a capital loss. Both matter for taxes and for understanding how your portfolio is really performing.

How capital gains work

Your gain (or loss) is generally the sale price minus what you paid to buy the asset, including fees. You only realize a capital gain when you sell, paper gains from a rising price don't count as taxable profit until you lock them in.

Holding period often affects tax treatment. Many countries tax short-term gains (assets held under a year) at higher rates than long-term gains. Check the rules where you live.

Capital gains vs dividends

Dividends are income paid while you still own the stock. Capital gains come from selling at a higher price. Investors may prefer one or both depending on goals, tax situation, and risk tolerance.

Capital gains and bunq

When you sell stocks through bunq Stocks, any profit or loss is realized at the moment of sale. Keep records of your transactions for tax reporting. Pair investing with budgeting so you know how gains fit your overall financial plan.

Frequently asked questions

Do I pay tax on unrealized gains?

Usually not, most systems tax gains when you sell. Some countries have exceptions; verify locally.

Can capital losses offset gains?

Often yes, up to limits defined by tax law. Losses can sometimes be carried forward to future years.

Do capital gains apply to crypto?

In many countries, yes, crypto is treated as an asset for tax purposes. Rules differ from stocks; consult a tax professional if unsure.