How can capital losses and gains be offset ?

Capital gains can be offset by capital losses of the same nature, but only for transactions that took place within the same tax year. In any case, the final net income from capital sales cannot be negative.

Non-allowed compensation:

• Non-taxable losses (e.g., losses on securities held for more than 6 months and with less than 10% ownership) are not considered for tax purposes.
• Losses cannot be carried forward to future years (no loss carryforward allowed for individuals).

Key points to remember:

• The final net income from capital sales cannot be negative.
• Only taxable gains can be offset with taxable losses.
• There is no offsetting with other types of income (e.g., salaries, rental income, etc.).
• Non-taxable capital gains (e.g., securities held >6 months without significant shareholding) cannot generate tax or be used for compensation.

Updated on: 16/07/2025