What is it?
In both France and Spain there is a Financial Transaction Tax. French Financial Transaction Tax (FFTT) and Spanish Financial Transaction Tax (SFTT).
You must pay this Transaction Tax when you place a buy order for French or Spanish stocks that have a market capitalisation of more than 1 billion Euros and have their headquarter in France or Spain. For French stocks the tax is 0,3%, for Spanish stocks this is 0,2%.
BUX automatically withholds this tax in the app for each BUY transaction you conduct with the relevant security. If any excess has been withheld, you will be refunded at the end of the trading day. You can find an example of a calculation here:
Example for French stocks:
You trade with Air France/KLM during the same trading day:
- You 100 shares at 12,10 EUR
- You sell 40 shares at 12,50 EUR
The user needs to pay the tax on the volume of 60 shares (100 - 40) at the price he bought it.
The tax base is: 60 x 12,10 = 726 EUR.
The tax is: 0.3%
They will need to pay: 726 x 0,003 = 2,17 EUR (amount of the tax)
To what stocks does the Financial Transaction Tax apply?