translation: However, this may turn out differently in specific situations and depending on the facts . To assess this well obviously we need more information from you There it is. Moron nobody didn't disclose his situation to a tax lawyer -he obviously can't afford an in-depth consult-, therefore he got the answer that they can't guarantee anything. The only sensible answer for any consultant to provide in this kind of situation. Nevertheless this moron keeps rambling on about "famous lawyers", big 4 offices", "Monaco penthouses" and "private jets". When is this tool going to realize he has no credibility left on this forum? He's got "FAKER" written all over him.
I don't give a rat's ass you're not interested. I tried to have a factual discussion with him on the subject. Instead he started insulting me and my countrymen on top of that, so he had it comin'.
The holiday destinations sound great especially if one lives in a big city but I think one could get very bored living on a tropical island paradise. 3 weeks of sun sea and sand is quite enough.
I contacted the Swedish tax authorities this year. They confirmed that Sweden – as opposed to any other country I have explored – does not tax trading income as business income but exclusively as capital gains irrespective of frequency of trading, volume, education, prior or current profession etc. That means 30% tax. Furthermore, there is the added benefit of using the “investeringssparekonto (ISK)” where you are currently taxed around 0.5% of total capital. However, you can only use the local banks, which is a significant drawback since they do not offer the order types of bigger international brokers and most likely inferior execution. Also, you cannot short stocks or use non-listed derivates e.g. CFDs. In practice, therefore, ISK is only relevant for longer term investments. But depending on the amount of longer term investments, ISK can pull the effective taxation significantly below 30%. The effective taxation for any meaningful level of income for a trader living in Sweden is thus a good deal lower than the effective taxation for a trader living in New York. On top of that, health care and education including universities are free. In fact you or your children get paid to study. The immigration situation is a problem, but sentiment is changing. Caveat: If your trading income is very irregular – i.e. if you often turn in an annual loss, Sweden is not attractive due to the inability to carry losses forward.
Just to correct myself, any bank can offer ISK accounts in Sweden. But only few foreign banks/brokers offer ISKs.
How is this? If you trade futures in the US you get 60/40 treatment which comes out to roughly 23% assuming 15% capital gains rate and 35% top income rate. Let's be honest, most traders are not even in that top income rate which drops their overall rate into the teens. Is that 30% in Sweden a flat rate starting on the first marginal dollar? Or does it start at some threshold?
In Sweden you can only take advantage of the "investeringssparekonto" (ISK) through banks/brokers offering specific ISK accounts. In the Dutch version with 1.2% taxation, can you choose any broker - e.g. Interactive Brokers - or are you only allowed to pursue the "box 3" taxation scheme through specific accounts offered by approved banks/brokers? In the Dutch version, are you allowed to short stocks? Thank you.