Best Country for Trading (Tax efficiency)

Discussion in 'Taxes and Accounting' started by ET873, Feb 3, 2010.

  1. 3acor

    3acor

    lets say you declared yourself a non U.S. resident, can't you just set up an account in a tax free country but then go live somewhere else and trade from there?
     
    #1101     Mar 30, 2019
  2. VKING75

    VKING75

    Hi @alexanderhu

    I am currently living in Budapest, but not yet registered as a tax payer in Hungary.



    If you could answer these questions, that would be of great help :

    - How much taxes should i pay if i trade US futures on my own name through a US-based broker ?

    - How much taxes should i pay if i trade CFD on my own name with a CFD EU-based broker ?

    Is this for both cases 15% with no additional taxes (social security..) ?

    Thank you !
     
    #1102     Apr 19, 2019
  3. schweiz

    schweiz

    I think it is at least 15% and 14% health tax. Read page 25 RATES in the added PDF.
    Seek professional advice in Hungary as it can be a matter of interpretation. Some EU countries have the bad habit to use the logic that brings the most taxes in.

    Example: in country A daytrading is capital gains taxed at 33%. But the taxing country can say that they consider it as a job so it should be taxed at much higher rates and there should be paid social security too.

    Be very careful. A fiscal ruling is the safest way to go.
    Your US broker will sent all detailed info from your trading to Hungary (ministry of finance). So you cannot hide anymore.
     
    #1103     Apr 19, 2019
  4. CALLumbus

    CALLumbus

    I think this is not true. USA are one of the few countries that do not participate in CRS.
     
    #1104     Apr 19, 2019
  5. schweiz

    schweiz


    Read footnote 1 in the pdf added.
    Interactive brokers USA is giving all standard information to the country where the client is originated from I think.
    https://ibkr.info/article/2784
     
    Last edited: Apr 19, 2019
    #1105     Apr 19, 2019
  6. Hittfeld

    Hittfeld

    Not where he is originated from, but where he has proved to live and stated his local Tax Id No.
    Especially from W8-Ben.
     
    #1106     Apr 19, 2019
    schweiz likes this.
  7. schweiz

    schweiz

    Correct, that was what I wanted to post. Fiscale domicile.
     
    #1107     Apr 19, 2019
  8. VKING75

    VKING75

    Thank you for the pdf, it does indeed say "The personal income tax is a flat rate of 15%. A 14% health tax is imposed on certain passive income, e.g. dividend income, capital gains and income exceeding HUF 1 million from the rental of real property."

    Earlier in this thread, @alexanderhu wrote this, so i would like to get his take on it :
     
    #1108     Apr 19, 2019
  9. VKING75

    VKING75

    Found this :

    « If you trade with a controlled capital market participant, it is enough to pay the 15% personal income tax. If the brokerage firm does not belong to this category, then a 27% health contribution is payable on income.

    Controlled capital market participant : Companies with the permission of the Magyar Nemzeti Bank, with the permission of the competent body in the EU Member State, or operating in a country with which Hungary has a double taxation convention, and the relevant institution in that state supervises the investment service provider or exchange information with State and the MNB.

    On this website you can check which provider has MNB license: http://alk.mnb.hu/bal_menu/piaci_szereplok/kereso/kereses »


    Sources : https://fxscouts.com/hu/a-forex-kereskedes-szabalyozasa-magyarorszagon/
    https://elemzeskozpont.hu/forex-adozas-devizakereskedes-adozas-2018
    https://fxtanoda.hu/hu/adozasrol

    So it seems that the tax is 15% if you trade with any EU broker, and is also 15% if you trade with a US broker that exchange information with Hungary. (no additional taxes)
     
    Last edited: Apr 20, 2019
    #1109     Apr 20, 2019
  10. Hi VKING75,

    If you trade with a US or EU brokerage company, regulated in the US or EU, then 15% flat, no social security, no additional levies, charges or taxes, nothing, assuming that you're a Hungarian tax resident only.
     
    Last edited: Apr 25, 2019
    #1110     Apr 25, 2019