Tax for non-U.S. citizens and non-residents

Discussion in 'Automated Trading' started by travis, Jan 31, 2007.

  1. travis


    I have a tax question for all those on this forum who are non-U.S. citizens and non-residents.

    I have an account with IB, and I am a citizen and resident of a EU country.

    From what I read, it seems that, besides filling out some US forms, since I only trade futures (no dividends involved), I won't have to pay any US taxes. Correct?

    What about taxes to be paid to my own country (Italy)? Any idea of how this works? Thank you.
  2. i dont think you have to pay any taxes is you dont live in US more than 183 days and are not a citizen.
  3. travis


    Ok, no taxes to the US, but what about my country? That's why I was asking other people in my situation (non citizen and non resident, if possible EU citizens).
  4. siki13


    How about taxes on interest rate that you earn on your money ?
  5. travis


    Ok, I asked the same question elsewhere on Italian financial forums, and here's the answer.

    You totally have to pay taxes to Italy's government, no matter where you have the account, and no matter what the nationality of the derivatives you have traded is (if you are trading futures and so on - I don't know about dividends and all that stuff), as long as you are a resident of Italy. I suppose the same principle applies to all EU countries.

    I'll wait till the new legislation is out, and see the details and how exactly, in June, I will have to pay those few hundred dollars of tax on my 2006 gains. I don't think I should spend twice that money to hire a specialist who'll do it for me.