Trade Republic Taxes 2025: A Complete Guide to Filing Your Declaration
- What Exactly Needs to Be Declared from Trade Republic?
- The Holy Grail: Understanding Trade Republic's IFU Document
- Foreign Account Reporting: The 3916 Form Dance
- Dividend Declaration: Navigating the 2047 Form
- The Great Tax Rate Debate: Flat Tax or Progressive?
- Special Cases: Crypto, PEA, and Interest Income
- 2025 Changes: What's New for Trade Republic Users
- Step-by-Step Declaration Walkthrough
- Common Pitfalls to Avoid
- Trade Republic Taxes: Final Checklist
- Frequently Asked Questions
Tax season is upon us again, and for Trade Republic investors, navigating the declaration process can feel like decoding financial hieroglyphics. Whether you're dealing with German IBANs, French accounts, or crypto gains, this comprehensive guide breaks down everything you need to know about declaring your Trade Republic investments for the 2024 fiscal year. We'll walk through IFU documents, foreign account reporting, dividend declarations, and the ever-confusing flat tax vs progressive rate dilemma - all with real examples from the 2025 tax forms.
What Exactly Needs to Be Declared from Trade Republic?
As a French tax resident using Trade Republic, you're required to declare all investment income generated through the platform. This includes:
- Dividends from stocks and ETFs
- Interest earned on uninvested cash (currently at 4% APY)
- Capital gains from securities sales
- Cryptocurrency profits (if applicable)
- Any losses that could offset gains
The big game-changer in 2025 is Trade Republic's French IBAN option. If you've switched to a French account, you no longer need to declare it as a foreign holding - a massive paperwork reduction. But if you still had a German IBAN during any part of 2024, that foreign account reporting requirement sticks.
For accurate tax reporting, Trade Republic provides a detailed fiscal report (similar to the French IFU document) that clearly outlines:
- All taxable events categorized by type (dividends, interest, capital gains)
- Applicable tax forms and codes
- Country-specific tax rates for foreign investments
- Any tax credits available
According to data from TradingView, the average French investor using Trade Republic holds about €5,000 in their account, generating approximately €200 in annual taxable income. The platform's automated tax reporting helps ensure accurate declarations.
The Holy Grail: Understanding Trade Republic's IFU Document
The Imprimé Fiscal Unique (IFU) serves as an essential tool for French investors using Trade Republic, simplifying the tax declaration process. This document bridges the gap between international brokerage reporting and French tax requirements, ensuring accurate and compliant filings.
Key features of the IFU include:
- Form Identification: Specifies all necessary French tax forms (e.g., 2042, 2074) tailored to your investment activities
- Tax Code Guidance: Provides correct classification codes such as 2TR for interest income or 2DC for eligible dividends
- Amount Verification: Details exact figures for dividends, interest, and capital gains/losses on a line-by-line basis
Accessing your IFU is straightforward through multiple channels:
- Email notification (typically by early March)
- App notification under Profile > Fiscal Report
- Direct download from your account dashboard
Important considerations when using your IFU:
- Reconciles international tax documentation with French requirements
- Serves as audit protection with official records
- Requires verification against your transaction history for accuracy
If your IFU is unavailable as tax deadlines approach, promptly contact Trade Republic support. This document is vital for avoiding penalties and ensuring your declaration matches your actual investment activity throughout the fiscal year.
Foreign Account Reporting: The 3916 Form Dance
If you maintained a German IBAN with Trade Republic during 2024, special tax reporting procedures apply for your French declaration. Here's a streamlined guide to compliance:
Foreign Account Reporting Essentials
- Bank identification: Trade Republic Bank GmbH (German entity)
- Legal address: Brunnenstraße 19-21, 10119 Berlin
- Account reference: Located in your app's personal details
- Activity period: Include all 2024 operational dates
Compliance Factors
Financial analysts highlight significant penalties for non-disclosure, particularly for accounts in non-cooperative jurisdictions. Transitioning to a French IBAN in 2025 eliminates this requirement for subsequent filings.
Recent regulatory data indicates France has intensified foreign asset monitoring through the 3916 framework, with enhanced enforcement mechanisms implemented since 2020.
Best Practices
- Archive digital records of all 2024 account statements
- Include previously closed foreign accounts in your declaration
- Reporting obligations are based on 2024 account status, irrespective of current configuration
For digital asset transactions, supplementary documentation may be necessary. Financial advisors recommend professional consultation for crypto-related activity during the reporting year.
Dividend Declaration: Navigating the 2047 Form
Dividends require special attention when declaring taxes with Trade Republic, especially when dealing with foreign-sourced payments. The process involves careful completion of FORM 2047, which handles foreign income declarations for French tax residents.
Key steps for dividend declaration:
- Country-by-country reporting: List each source country separately (e.g., US, Germany, etc.) in box 202 of Form 2047
- Net amounts: Report amounts received after foreign tax withholding in box 203
- Tax treaty rates: Note applicable rates (e.g., 17.6% for Germany in 2024) in box 204
- Currency conversion: All amounts must be converted to euros, even for US stocks
Special cases to note:
- REIT/SIIC dividends must be reported in box 2TS instead of the standard 2DC, as they don't qualify for the 40% tax reduction available for regular dividends
- Dividends from German companies are subject to 26.375% withholding tax at source, but French residents may be eligible for partial recovery
According to data from TradingView, proper dividend declaration is crucial as foreign dividend income represents approximately 15% of French investors' portfolio returns. The BTCC team recommends cross-checking all dividend amounts with your Trade Republic IFU (Imprimé Fiscal Unique) before submission.
For US dividends, remember that while the standard US withholding tax is 30%, the France-US tax treaty typically reduces this to 15% for qualified dividends. This reduction should be reflected in your declaration.
The Great Tax Rate Debate: Flat Tax or Progressive?
When declaring income from Trade Republic investments, French residents face a critical choice between two taxation systems: the default flat tax (Prélèvement Forfaitaire Unique) or opting for progressive income tax rates. This decision significantly impacts your net returns and requires careful consideration of your overall financial situation.
Understanding the Flat Tax System
The standard 30% flat tax comprises:
- 12.8% for income tax
- 17.2% for social charges (CSG/CRDS)
- Capital gains from securities sales
- Dividend income
- Interest earned on uninvested cash
| Simplified automatic withholding | No consideration for personal tax bracket |
| No additional declaration required | Potentially higher rate than progressive for low incomes |
| Ideal for active traders with frequent transactions | Social charges always apply at full rate |
The Progressive Rate Alternative
By checking box 2OP on your tax return, you can elect for progressive taxation which:
- Applies your marginal tax rate (0%-45%) to investment income
- Still includes 17.2% social charges
- May qualify for the 40% dividend allowance
| Potential savings for low-income investors | Requires calculating tax across all investment income |
| Access to dividend tax allowance | More complex declaration process |
| Can optimize with tax-loss harvesting | Higher rates possible for substantial gains |
Key Decision Factors
Consider these elements when choosing:
According to TradingView market data, the optimal choice varies significantly based on your total portfolio size and composition. The BTCC research team recommends consulting a tax professional for personalized advice, particularly if you have multiple investment accounts or complex financial situations.
Remember: This election applies to all your French-taxable investment income, so analyze your complete financial picture before deciding. Your Trade Republic IFU will provide the precise amounts to declare under either system.
Special Cases: Crypto, PEA, and Interest Income
Trade Republic's expanding product lineup adds complexity to tax reporting, requiring careful attention to different asset classes:
- Crypto Assets: All cryptocurrency transactions must be reported on form 2086. You'll need to calculate gains/losses using acquisition and sale prices. Unlike traditional securities, crypto-to-crypto trades are taxable events in France. The BTCC team recommends keeping detailed records of all transactions throughout the year.
- PEA Accounts: The tax-advantaged Plan d'Épargne en Actions only requires declaration upon withdrawal or closure that generates gains. Early withdrawals (before 5 years) trigger taxes on gains plus a 30% penalty. According to TradingView data, PEA accounts have grown 27% year-over-year among French investors.
- Interest Income: The attractive 4% cash yield on uninvested funds must be declared in box 2TR via form 2047. This applies even if you automatically reinvest the interest. Coinmarketcap shows similar cash account products have become increasingly popular in 2024.
Key reporting considerations:
Pro tip: Always verify that Trade Republic has your French tax ID (NIF) on file. If you're a tax dependent, provide your parents' fiscal number instead. The BTCC compliance team notes that missing tax IDs account for 18% of reporting errors according to 2023 French tax authority data.
Remember that different tax forms apply: - Form 2086 for crypto (due within 1 month if >€5,000 gains) - Form 2047 for foreign-sourced income - Standard 2042 for domestic investments
2025 Changes: What's New for Trade Republic Users
This tax season brings several updates:
- French IBAN users skip foreign account reporting
- Enhanced IFU documents with clearer breakdowns
- PEA availability (declare only when withdrawing)
- Simplified US stock dividend reporting
One persistent headache remains - the platform still occasionally makes errors in fiscal reports. Always verify amounts against your transaction history.
Step-by-Step Declaration Walkthrough
Here's a streamlined approach to managing your Trade Republic tax obligations in France:
Professional Recommendation: For sophisticated investment scenarios, specialized declaration software or expert consultation may prove beneficial. The platform's standardized annual documentation now offers significantly improved efficiency compared to historical reporting requirements.
Common Pitfalls to Avoid
After helping dozens of friends with their Trade Republic taxes, I've seen every mistake:
- Currency conversion errors: Forgetting to convert USD amounts to euros using the exchange rate from the transaction date (not the current rate). The French tax authority requires all amounts in EUR.
- Foreign account oversight: Missing the mandatory foreign account declaration (form 3916) for IBANs held outside France during the tax year, even if now closed.
- REIT misclassification: Mixing up REIT dividends (which go in box 2TS) with regular dividends (box 2DC) - this affects your 40% tax allowance eligibility.
- Interest income neglect: Overlooking the 4% interest income from uninvested cash, which must be declared even if automatically reinvested.
- IFU blind trust: Assuming the IFU is 100% accurate - always cross-check with your trade confirmations, especially for foreign-sourced dividends.
- PEA confusion: Mistakenly declaring PEA transactions before closure - only report when withdrawing funds or closing the account.
- Flat tax assumption: Not realizing you can opt for progressive taxation (box 2OP) if it's more favorable for your income bracket.
According to data from TradingView, these errors account for 73% of tax adjustments for French retail investors in 2024. The most costly mistakes involve foreign account non-declaration (average penalty: €1,850) and REIT misclassification (average additional tax: €420).
The French tax authority's website has surprisingly helpful guides if you need clarification on any form. For complex cases, consider:
Remember: Trade Republic's German IBAN accounts require special attention until you've fully migrated to their French IBAN system. Keep records of your migration date as proof for future audits.
Trade Republic Taxes: Final Checklist
Before submitting your tax declaration for investments made through Trade Republic, here's a comprehensive checklist to ensure you've covered all necessary steps:
- ✅ German IBAN in 2024? If you used a German IBAN during the tax year, you must complete Form 3916 to declare foreign accounts, even if you've since migrated to a French IBAN.
- ✅ All dividends/interest reported Document all dividend income and interest payments on Annex 2047. Remember to:
- Specify country of origin for each dividend payment
- Include both gross and net amounts
- Note any foreign tax credits available
- ✅ Capital gains documentation Report all realized gains and losses on Form 2074, including:
- Date of acquisition and sale for each position
- Cost basis calculations
- Any applicable wash sale adjustments
- ✅ Crypto transactions If you traded cryptocurrencies, complete Form 2086 with:
- Acquisition dates and costs
- Disposal dates and proceeds
- Calculation method used (FIFO or specific identification)
- ✅ Tax rate selection Confirm your chosen taxation method:
- Flat tax (30%) - default option
- Progressive tax - requires checking box 2OP
- ✅ Verification Double-check that:
- All amounts match your Trade Republic IFU (Imprimé Fiscal Unique)
- Your personal records align with the reported figures
- You've provided your NIF (Numéro d'Identification Fiscal) to Trade Republic
- Trade Republic now provides detailed tax reports (IFU) that simplify the declaration process, but ultimate responsibility for accuracy lies with you.
- For complex situations (multiple accounts, foreign tax credits, etc.), consider consulting a tax professional.
- Penalties for errors or omissions can be substantial (up to €10,000 for undeclared foreign accounts).
Data sources: TradingView for market data, Trade Republic tax documentation for platform-specific information.
Frequently Asked Questions
Do I need to declare my Trade Republic account if I have a French IBAN?
No - the French IBAN means Trade Republic is now considered a domestic account. Only accounts with foreign IBANs during the tax year require declaration.
How do I find my Trade Republic account number for form 3916?
Check your account information in the app or look for welcome emails when you first opened the account. The number typically starts with "DE" for German accounts.
What if I made less than €5,000 in gains?
You must still declare all income regardless of amount. The €5,000 threshold some mention applies to different tax situations.
Can I change between flat tax and progressive rates later?
Yes - you can switch your choice each tax year by checking or unchecking box 2OP.
How are US stock dividends taxed?
They're subject to 15% US withholding tax (reduced by treaty), then either 12.8% or your progressive rate in France plus 17.2% social charges.
What if I find errors in my Trade Republic IFU?
Contact their support immediately with documentation of the discrepancies. Keep records of all communications.
Do I need to declare unrealized gains?
No - only profits from actual sales need declaration. Unsold holdings aren't taxed.
How long should I keep tax documents?
French law requires keeping supporting documents for 6 years in case of audit.
