Best Country for Trading (Tax efficiency)

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

  1. dw31583

    dw31583

    May I pm you?
     
    #601     Jul 24, 2016
  2. p0box4

    p0box4

    The Netherlands may be an interesting option as well.
    I am considering moving there since i live close by anyway.
    It is somehow complicated but what i found so far is this:

    In the Netherlands as a private trader, not as a company, you pay taxes as set in "box 3".
    The laws are going to change for 2017 and the most recent numbers i found are these:
    If you have 500.000€ in private savings, they expect you to gain an average return of 4.7%/year = 23.500€/year.
    Over this amount you have to pay 30% tax = 7050€.
    So either if you gain more or less return then 4.7% you always pay 7050€, even if you have a negative annual return.
    If you have over 975.000€ private savings the fixed expected return becomes 5.5%/year, this would mean 16087.5€ in annual taxes.
    Below 75.000€ the fixed expected return is 2.9% which would result in 652.5€ annual taxes.

    So this means if you make a return of 50% over the 500.000€ you make 250.000€ profit and you only pay 7050€ taxes = 2.82%.
    If you make 10% you would pay 14.1% (again 7050€) tax over the return, still not that bad.

    Notice that this is information i found online myself and could be wrong.
    I am in early contact with an accountant in the Netherlands to find out more about their taxes.

    Where i live (Belgium), taxes over short term trading returns (everything below 6 months) are a hell, as a private person you pay up to 50-60% taxes and as a business it is almost impossible to stay positive after taxes. I live only a 10 minute drive away from the boarder with the Netherlands so for me this is the best option i guess.

    Here is the link with more information in Dutch.
    http://www2.deloitte.com/nl/nl/pages/tax/articles/belastingplan-2016-herziening-box-3.html
     
    Last edited: Jul 24, 2016
    #602     Jul 24, 2016
    Douryan likes this.
  3. luisHK

    luisHK

    yes, of course
     
    #603     Jul 24, 2016
  4. dw31583

    dw31583

    I can't even see your profile. PM me then.
     
    #604     Jul 24, 2016
  5. marsman

    marsman

    So, they don't need to know the real profit made? They want to know just the size of the capital at start of the year, and from that they assume a profit of 4.7% p.a., right?
    I would be careful, because this smells fishy...
     
    Last edited: Jul 24, 2016
    #605     Jul 24, 2016
  6. Handle123

    Handle123

    Last edited: Jul 24, 2016
    #606     Jul 24, 2016
  7. dw31583

    dw31583

    Netherlands works only if you're investing and not trading. A trader tried to get a ruling from the tax authorities and they didn't say that you can include your trading income in box 3. If you have a job and you earn $10k-$20k per year from trading then you can but if you make more then it's taxable.

    Btw I was talking with a Dutch lawyer on the previous week exactly about this because I was curious if it could work. It wouldn't.
     
    #607     Jul 24, 2016
    p0box4 likes this.
  8. p0box4

    p0box4

    I already thought it was too good to be true.
    So then it will be taxed in box 2 (if you start a BV) which means you have to pay 20% over the returns after expenses. The rest of the money you can leave in the BV or pay out as a dividend which is taxed at 25%. Still much better than in Belgium anyway.
     
    #608     Jul 24, 2016
  9. marsman

    marsman

    Because of the high taxes, Europe has become unlivable for traders...
     
    #609     Jul 24, 2016
    dw31583 likes this.
  10. p0box4

    p0box4

    Unfortunately this only counts for residents who also have a job in the Netherlands according to dw31583's post.
     
    #610     Jul 24, 2016