Securities fees: what is deductible, and why the tax bracket option matters

Securities custody fees, safe deposit box rentals, and certain insurance premiums are deductible from your investment income. One condition: you must have opted for taxation under the progressive tax scale by checking box 2OP. With the flat tax of 12.8% (%), these fees are not deductible. Interest on a loan taken out to purchase securities is also not deductible.

This page deals with investment income for a French tax resident, such as dividends and interest. It does not address the deductibility of assurance-vie policy fees, real estate expenses, or the deductible CSG (General Social Contribution), which should be verified with the relevant source. The revocability of the option should also be verified with the official source before checking or unchecking the box. Investments in securities carry a risk of capital loss.

Which expenses are deductible, and which expenses are not?

The tax administration's page on investment income (updated 08/04/2026) allows deductions, "for their actual and substantiated amount," for four categories of expenses. The BOFiP (BOI-RPPM-RCM-20-10-20-70) provides the same list and adds print verification fees.

The principle established by the BOFiP (§ 20) is that expenses "directly aimed at acquiring or maintaining income" are deductible. The list above applies this principle. It is not presented as exhaustive: the BOFiP uses the term "in particular" (§ 30).

The three conditions

1. The option for the pricing scale. The BOFiP (§ 10) states that "expenses can only be taken into account if the taxpayer opts for taxation according to the progressive tax scale." The help section of the 2026 tax return simulator confirms this: if the flat tax rate of 12.8% is applied, "the expenses are not deductible.".
2. Actual and justified expenses. No flat rate. For custody fees calculated on a flat-rate basis, the BOFiP (§ 30) requires a bank statement "breaking down, by nature, the securities composing its portfolio"; "in the absence of such a statement", custody fees are not allowed as a deduction.
3. Fees paid within the year. To be deductible, expenses must be "actually paid during the said year" (BOFiP, § 15).

The option for the scale: a global decision

The option is selected by checking box 2OP on form 2042. It applies to all your investment income and capital gains from the sale of securities: it is not applied on a security-by-security basis. According to the practical guide (p. 124), the box is pre-checked on the form if you checked it the previous year; if you make no changes, you confirm the option. To opt out, you must uncheck the box.

With this option, the practical guide states that "deductible expenses paid during the year and losses from previous years are allowed as deductions." Expenses are entered in box 2CA of the tax return (see the 2026 simulator and guide for 2025 income). The rules for carrying forward a loss are not covered here.

This option applies to all your investment income and capital gains, not just those subject to fees. The page dedicated to choosing between flat-rate and progressive tax compares the two methods of taxation.

In what order is the calculation done?

The BOFiP (§ 100) specifies that expenses must be deducted "after application of the 40 % allowance." The brochure indicates that this allowance applies "only in the case of a global option" for the progressive tax scale (dividends declared on line 2DC). When you have several types of income, the shared expenses are allocated proportionally to the amount of each type of income within the total declared investment income, excluding debt income.

Do not confuse with two other "fees"«

• Purchase costs in the calculation of capital gains. For capital gains on disposal, the BOFiP (French Official Tax Bulletin) states that "the acquisition price or value thus determined must be increased by the amount of acquisition costs" (BOI-RPPM-PVBMI-20-10-20, § 10). This is a different calculation, independent of the tax scale option. The exact nature of the costs taken into account and the treatment of disposal costs are not detailed here: these should be verified in the BOFiP.
• Childcare costs. These have nothing to do with securities custody fees. The administration's calculation sheet mentions a tax credit of 50% of the sums paid, limited to €3,500 per child, for children under 6 years old (2025 income).

Securities fees: numerical example (fictitious profile)

Situation. Sophie receives €10,000 in dividends eligible for the 40% tax allowance. She paid €400 in custody fees, supported by a bank statement. Assumptions: her marginal tax rate is 30%; the calculation is based on income tax only, excluding social security contributions and deductible CSG (General Social Contribution).

Issue. What is the effect of these €400 in fees depending on whether or not she opts for the scale?

Strategy. Apply the prescribed order: 40 % allowance, then deduction of expenses.

Result. With the flat-rate levy of 12.8% (%), expenses are not deductible: the base remains €10,000. With the option for the tax scale:

The €400 deduction reduces the tax from €1,800 to €1,680, a decrease of €120 (€400 x 30 %). Under the flat-rate tax system, the €400 deduction has no effect.

This profile is fictitious. The amounts and marginal tax rate are hypothetical. The example does not compare the two tax regimes: it does not include social security contributions, the deductible CSG (General Social Contribution), or your other income. It illustrates the deduction mechanism and does not predict your specific situation.

Securities fees: what changes depending on your situation

• The type of income. Dividends, interest, tax-exempt income: expenses do not follow the same fate.
• The amount of the fees. The weight of deductible expenses must be considered in relation to all your investment income and capital gains.
• Supporting documents. Bank statement for flat-rate fees, invoices for the safe or insurance.
• The year of payment. An expense paid one year is not deductible the following year.
• Your method of taxation. The option is comprehensive: it covers all your income from movable capital and your capital gains from the sale of securities.

The rule depends on your situation. No results are guaranteed.