Opt-out or not? – Be careful with civil partnerships and split accounts!
The capital gains tax has been in effect since January 1, 2026. This tax is paid either through withholding by the bank or by declaring the capital gains in your own tax return (‘opt-out’). While the choice between the two systems is still relatively straightforward for accounts held by you alone or with your partner, special attention is required for accounts held in usufruct/bare ownership (‘split accounts’) or by civil partnerships.
1. Split accounts
Such accounts are relatively common: not only is this the legally prescribed division when the first spouse dies (the surviving spouse then inherits the usufruct of the estate, the children the bare ownership), but in the context of estate planning, it also happens more than once that parents gift the bare ownership of assets to the children, thereby retaining the usufruct themselves.
When capital gains are realized on financial assets held in such a split account, the status of the bare owner(s) is decisive, as they are liable for the capital gains tax. This also means that they (= the children) must make the choice regarding withholding or ‘opt-out’, and not the parents, who, by hypothesis, are merely usufructuaries!
When making this choice, it is best to take all consequences into account.
Withholding by the bank
In this scenario, the capital gains tax will be withheld from the split account. If subsequently one wishes to claim the EUR 10,000.00 exemption or apply a set-off against capital losses, this can only be done in the name of the bare owners (i.e. the children). They will have to include this in their personal income tax return and will receive the resulting refund, or benefit from the offset against the personal income tax due on their other taxable income.
The withholding is therefore charged to the split account in the name of the parents and the children, while the refund/offset benefits only the children.
‘Opt-out’
In this scenario, the bank does not withhold capital gains tax from the split account, but it is again up to the bare owners (= the children) to report all realized capital gains (with immediate application of the EUR 10,000.00 exemption and the offset of capital losses). The consequence of this is, of course, that the bare owners (= the children) will see an amount including capital gains tax on their tax assessment notice and will therefore also have to (be able to) transfer that amount to the tax authorities.
In this scenario, the split account in the parents’ and children’s names remains ‘intact’, but the tax liability falls entirely on the children, who must therefore have the necessary financial resources to cover it.
Furthermore, in the event of an ‘opt-out’, the bank is required to provide the tax authorities with the details of the taxpayers concerned (i.e. the children) and a summary of the capital gains realized.
2. Civil partnerships
Civil partnerships are fiscally transparent. They do not pay income tax themselves. Income and capital gains are taxed directly at the level of the partners, in proportion to their share in the civil partnership.
Thus, when a civil partnership realizes a capital gain on financial assets, the capital gains tax is owed by the partners in proportion to their ownership percentage in the civil partnership.
In the context of estate planning, it is usually the children who are the full or bare owners of the civil partnership shares. Given the tax transparency of a civil partnership, the tax liability and filing obligation therefore also lie primarily with the children. With the same consequences as explained above.
If the standard method is chosen, the bank will immediately withhold 10% tax on any capital gain realized by the civil partnership. This withholding is applied to the account in the civil partnership’s name. Claiming the EUR 10,000.00 exemption and offsetting capital losses will (primarily) be the responsibility of the children. The financial benefit will (primarily) accrue to them.
If the opt-out method is chosen, the bank will not withhold the capital gains tax. In this case as well, the children will (primarily) have to report all relevant items – including capital gains, capital losses, the EUR 10,000.00 exemption, … – on their personal income tax returns and must be financially able to pay the tax due.
For more information about capital gains tax, please consult our FAQ or contact your representative at the bank.
