About dividends in Spain, without any particular set up, it seems witholding tax on div from countries which don t tax them, like HK and UAE are 15%. Not too bad although obviously 0% is better
Besides noone here seem too concerned about it, but capital is often not as free flowing as one wished for as the laws hint, it got worse in most of the world and even within EU i hear from acquaintances their banks refuse to wire funds overseas, even from company accounts. Banks ask for a lot more documentation that only 5 years ago and sometimes flat out refuse to wire funds overseas, even small amounts. Even same name transfers seem to cause problem. Wondering how u guys deal with it, but I d be very reluctant to send too much money into a single European country, even less into a single corporation there, and that would imply my banks accept to send the money there in the first place which is not a given.
Seriously, I have not really noticed the change you are talking about. I hate this part of the relocation process when you have to create a new company in the new country and progressively move your accounts there. The wire chain Broker Company 1 to commercial bank company 1 to personal account( dividend ) to commercial account company 2 to broker company 2 is just a delaying nightmare and a money burner if you convert currencies. But this has always been in place. Now, you have to provide more documents to prove you are not american and not laundering money, but that's it in my experience. What kind of jurisdiction are you talking about? I don't know for tax havens. Most of my transfers are wires or SEPA between Switzerland, France, the US, the UK and Spain.
I have never experienced any problems. Wire transfers all over Europe and the US go without any problem. But your money should be official, no money laundering. So if they have questions it means that they think you are money laundering.
Yes, problem is banks are so scared now to be involved in money laudering the free flow of capital is a thing of the past. One need to supply a bunch of documents to wire money across the Pyrenees to their personal account there and it s the same when a supplier wants to pay his suppliers in Asia. HSBC is hellish the world over apparently but many banks follow on a similar path. Curious to read where in Europe it is safer to keep funds now, it makes sense some countries/sectors are more complicated than others. Germany has a reputation to be friendly to non residents and to have easier going banks .Not talking about hiding money, but keep it than wire it out when needed. If u ve never had money stuck somewhere Schweiz good on you, I wish urs as well as anyone s capital to move freely, but I too little trust in the EU to repatriate much $ there. Little trust in any juridction btw, so spread it around and reluctant to bring much of it in a single entity.
Tradator, friends Im reffering are french, using french banks. I used to run a small company in.France and it was easier to send money overseas. Curious to read if other coubtries are easier, already heard Spanish banks are much more cash friendly for instance but wondering how they concile that with rather restricting cash laws there. Besides I bank in a bunch of places and it has been going downhill for the last few years, now staying away from western banks but it is not without headache. I find it crazy even same name personal accounts wiree within EU cause issues.
Actually, if you are talking french banks, I remember one of my friends had quite an adventure moving a small sum from BNP Paribas to UBS in Switzerland. But I maintain an account at Crédit Agricole and never had such problems. NB: The problem with Credit Agricole is that their withdrawing and payment limits are so low that when you are travelling, you can live approximately 1 day and a half before maxing out...LOL
Hi @mccc . I'm in exact the same situation as you were/are. Is there any chance you could give an update about what you eventually did? Did you ever go talk with a tax professional about the subject? Thanks in advance.
Hi @est1 . So you are a full time trader in Estonia? Sounds great! Any chance you could provide me some information about how your taxes look like? Are you under the statute of 'self-employed' and pay income tax (20%) + social tax (33%)? Or did you set up a company with more tax-friendly rates? Thanks in advance.
You set up an LLC, cost is a few hundred euros now I believe. Open a bank account for the LLC, put your funds there, wire to your brokerage account and start trading. You submit your annual LLC tax forms showing the profit/loss in your accounts, non-taxable until wired out of your company accounts to you. When you want to take profit out, pay 20% (80/20) dividend tax on the amount within 3 months of filing. Your employment status is 'unemployed'. For 'insurance', you can pay yourself the minimum salary of €500 which is taxed accordingly, this gives you access to health care. Your employment status will be 'employee'. 'Self-employed' (FIE, Füüsilisest isikust ettevõtja) is whole different thing and offers you no tax benefits while you'd have all the obligations. Trading as a physical person is entirely different. You can have a similar scheme but you can only use certain banks for trading, those tend to have terrible commissions and are only used by investors. If using a 'proper' broker then you're taxed annually on profits whether the funds are used for trading or not. All done electronically, no need to wait in queue.