Trading for a living & taxes in EU

Discussion in 'Taxes and Accounting' started by w4rri0r, Feb 18, 2018.

  1. schweiz


    What about simple daytrading? So not with spreadbetting.
    #21     Feb 19, 2018
  2. w4rri0r


    oh my .......

    so....for what i know at the moment and to stay on topic:

    1) in Portugal as private trader (not as business entity), capital gain is taxed 28% in autonomous tax exercise....regardless of the trading object (stock, futures, forex, etfs...) and it's not considered as income...regardless the numbers of trades or the capital involved. If you include earnings in your yearly tax declaration, the rate will be the progressive rate applied to regular wage earnings.
    2) in NL you are taxed 30% assuming an average gain of 4% on all your savings
    so you pay 1,2% (4% 0f 30%) on your entire capital regardless your gains or losses .... the problem is (as i know) you can't do trading as main profession as a private trader... as my knoledge a full time trader will be taxed (as private) as income (not capital gain) at 33% more or less ...
    don't know if one trade through a company, wich type, licences (i assume trading througha company qualifies you as professional, so maybe licences are needed) and costs ... would be awesome knowing more about it
    2) In Switzerland one as private trader would be charged more or less 35% if trading activity generate more than 50% of the income
    #22     Feb 19, 2018
  3. tomorton


    UK -

    For the individual -
    If you trade via CFD's you would be liable for Capital Gains Tax (but only payable if profits exceed the annual 0% allowance). Traded and binary options would be regarded as financial investments and would need to be declared as personal income.

    For a business -
    If you set yourself up as a business through which you trade, the business would be liable for business tax. If you are a named employee of the business, entitled to receive a salary, that would be liable to Income Tax as well.
    #23     Feb 19, 2018
  4. schweiz


    33% ????

    Dutch tax rates

    There are many variables that influence your Dutch tax rate. However, as an example, below are the basic Dutch tax rates in the Netherlands in 2017 for those below retirement age:

    • Up to EUR 19,982: 8.9 percent (EUR 1,778)
    • EUR 19,982–EUR 33,791: 13.15 percent (EUR 1,816–3,594)
    • EUR 33,791–EUR 67,072: 40.80 percent (EUR 13,579–17,173)
    • EUR 67,072+: 52 percent
    A real trader would be in the 52% area.

    On top of this, Dutch social security tax is paid at a rate of 27.65 percent in 2017, down from 28.15 percent in 2016 (or 9.75 percent for pension-age residents). To get an idea about your individual income tax in the Netherlands, you can use a Dutch income tax calculator.
    #24     Feb 19, 2018
  5. Onra


    As an individual you're basically paying 1,2% tax over your profits in the Netherlands.
    #25     Feb 19, 2018
  6. schweiz


    Wrong again.

    How is Box 3 tax calculated?
    In the days of 2001 a 4% interest rate on your savings was not a too bad interest, but it could be better. This made the tax office create the following taxation.

    The tax payer presents all of his or her world wide assets. From the total amount is deducted the tax free amount, being EUR 21.330 (2015). The world wide assets is a combined amount of both tax payers, if you have a tax partner. If you have a tax partner, the tax free amount is double, being EUR 42.660.

    The tax office then assumes you made 4% over these assets. The outcome of that amount is taxed at 30% income tax. That is how Box 3 income tax is calculated.

    You pay on your assets, not your profits. Can make a huge difference. So also taxes on money that is not used for trading.

    Don't use ET as a tax advisor. Take a REAL tax advisor.
    #26     Feb 19, 2018
    Xela and d08 like this.
  7. Onra


    Almost right...

    30% over that 4% = 1,2%
    #27     Feb 19, 2018
  8. schweiz


    4% is not correct anymore. Not only on your trading account, also second house, savings... so this can add up quickly.
    Last edited: Feb 19, 2018
    #28     Feb 19, 2018
  9. Onra


    You're right; things changed in 2017... :(
    Thanks for the tip!
    At least we agree that it's still in the lower percentages! (1,63 and 5,39)
    #29     Feb 19, 2018
  10. I agree, you should definitely consult a professional advisor before doing anything like this. And its true affect on you may not be as hopeful as described in my post (I do not deal with American taxes for example, so not sure what the rules there are). However, as a general guideline of something that is feasible, I believe the above steps serve as a starting base for one to do further investigation.
    #30     Feb 19, 2018