1. General principle
Interest is taxable only when it is withdrawn from your account. Therefore, as long as no withdrawal has been made, no tax is payable.
Only interest received will be taxed. The repayment of the capital invested is not taxable.
2. Tax rates for individuals residing in France
Interest withdrawn must be declared as “Revenus de Capitaux Mobiliers,” and you must pay the tax yourself.
You can find out how much interest has been withdrawn, per year, from your account in the “Taxation” section of your customer area.
3. Tax rates for individuals residing outside France
There is no withholding tax.
You must declare the interest you have earned to the tax authorities in your country of residence.
4. Mechanism for interest blocked until the corresponding capital is withdrawn
When you make an investment, it generates interest that is displayed on the total balance of your Regular account. This interest is only available for withdrawal after you have withdrawn the capital that generated it.
For example:
On May 15, 2024, you make an investment A of €20,000.
One year later, on May 15, 2025, this investment A has generated interest of €1,280, and your total balance is €21,280.
if you make a withdrawal of €12,000 on May 15, 2025, the principal will be repaid first. You will then have an outstanding balance of €9,280, including €8,000 in principal and €1,280 in interest. This interest can only be withdrawn once the remaining principal of €8,000 has been withdrawn.
If you make several investments, the same rule applies to successive investments, for example:
you make investment A of €10,000 on June 10, 2024, and investment B of €10,000 on September 10, 2024.
In the event of a withdrawal, the principal amount of investment A is repaid first, then the interest generated by investment A, then the principal amount of investment B, then the interest generated by investment B, etc.