Best European Countries to Trade from

C

countercountertrend

Hi, I am interested in moving to Europe to trade (futures trading), any suggestions? Low tax is the main concern and I prefer northen europe mainly because of the climate. I am thinking Ireland (I think trading gains are taxed at 12.5% there) and Switzerland (12.5% federal + canton income tax). Im not sure if daytrading counts as capital gains in switzerland or not otherwise it would be tax free (?), as there isnt cgt there. I would also welcome specific tax advice for any recommend country.

ww.globalpropertyguide.com/Europe/capital-gains-tax

According to that site, Belgium, Lichtenstein and the Netherlands also have no capital gains and these are countries I would consider moving to, I am not sure if that would be beneficial to proffesional daytraders.
 
Use a spreadbet company, taxes on gains are zero. Offsetting that is that the costs of trading with them can be far steeper than with a futures broker. If you are willing to do volume, then you can certainly negotiate cheaper costs.
 
countercountertrend said:
Hi, I am interested in moving to Europe to trade (futures trading), any suggestions? Low tax is the main concern and I prefer northen europe mainly because of the climate. I am thinking Ireland (I think trading gains are taxed at 12.5% there) and Switzerland (12.5% federal + canton income tax). Im not sure if daytrading counts as capital gains in switzerland or not otherwise it would be tax free (?), as there isnt cgt there. I would also welcome specific tax advice for any recommend country.

ww.globalpropertyguide.com/Europe/capital-gains-tax

According to that site, Belgium, Lichtenstein and the Netherlands also have no capital gains and these are countries I would consider moving to, I am not sure if that would be beneficial to proffesional daytraders.
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The first question is: will you start a company or not?

Ireland taxes companies 12,5%. Trading as a private person is taxed as income, trading has nothing to do with capital gains. So you pay 20% tax for income not exceeding 32.800 euro, for the higher income you pay 40%. Because you will be considered as self employed you will have to pay also for social security.

Almost everybody interprets "capital tax" in a wrong way. Capital gains excluded in most European countries profits from trading. Profits from trading are in general taxed as income.

In the Netherlands you pay 30% tax on a hypothetical return of 4% on your total capital. So you pay 1,2% every year on your total fortune. Trading will be taxed at 1,2% if you have a full time job outside of trading. And the fiscal administration should agree with these rules. Like in many European countries, to be sure it is not taxed as income, it should be profits that are small, if not they will tax you at about 50% anyway, the activities should be limited, the traded product can not be speculative, so daytrading is 100% excluded as capital gains in almost entire Europe......

In Belgium you have the same problem. If you trade more than the average Belgian, or if you use an infrastructure that is not used by the average Belgian (like PC with online datafeed or Tradestation), or if you do trades almost every day.... you will be taxed at around 50% and pay also social security which can cost you 35%. If you have another full time job they tax you (if you are lucky) at 33%, no full time other job means 50% and 35% social security.


In Switzerland you will pay quickly around 30% plus social security.


Don't believe these cheap websites on the internet, but take advice at Price Waterhouse, Deloitte, Ernst&Young.


If you really make big money (why else would you make this move), you should go to Monaco. This is surprisingly the cheapest solution. There are no taxes at all on income from trading.

This website is full of errors, don't rely on this information:

www.globalpropertyguide.com/Europe/capital-gains-tax


In general: professional daytraders will be taxed at rates between 35% and 55% and in many case will have to pay social security on top of that.

Not only in the US, but also in Europe tax people have to tax, as much as possible, all people living in their country. Europe is not a charity organisation. In general you pay more in Eurpe than in the US.
 
Thanks for your input. If thats the case it looks like US is a much better option because of the 60/40 rule for futures. I am also fine with trading through a company. I hear andorra is also a good low tax place.
 
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Gambling in Britain is tax free. Try doing forex on a free platform if you are really nearly skint, like MT4
 
countercountertrend said:
Thanks for your input. If thats the case it looks like US is a much better option because of the 60/40 rule for futures. I am also fine with trading through a company. I hear andorra is also a good low tax place.
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Stop believing all these things you read. It is not so simple at all. If it was everybody would do it. I know many people who know how it works in Monaco, but they never lived there, never had a business there, they even where never 1 day there on holiday. But they are the experts! At least that is what they say.

If you really make money go for professional advice. It will be cheaper than if you do what they tell on the internet and then meet people from the IRS or local tax people because of tax claims.
 
The Netherlands is the place for you, capital gains are not taxed, though your capital is taxed at a fixed rate of 1.2% a year.
 
Ditch said:
The Netherlands is the place for you, capital gains are not taxed, though your capital is taxed at a fixed rate of 1.2% a year.
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I negociated with taxpeople in the Netherlands for several months. They did not want to confirm that i would be taxed at 1,2% fixed rate. I still have all names and adresses from the people I contacted and judgements from the highest court to proof my case. I did not go to the Netherlands because there was a risk that I would be taxed on my traders income in box1 for those people who know what this means. So not box3 as some think. I contacted specialized tax advisors and tried to have a ruling with the only taxoffice in the Netherlands that can make such a rulings. Ruling was impossible and it was impossible to have a 100% certainty about the 1,2% taxation. It could be 50% taxation too. So I choose another country where I have 100% certainty about my taxation. Tax people in the Netherlands told me that for 10.000 euro profit they would not make problems, but if I would declare 1 million it would be a completely different story. A more expensive one. If I still have good memory I think they will tax you with a fine of 75% of the profits you did not declare, or declared wrong. I take already enough risk in trading, so I don't need extra risk with taxes.
You can try and ask PWC, or Deloitte or E&Y to negociate for you. I already know the answer they will give you.
You don't have to take my advice, but never forget that I warned you. I checked every European country for myself, so I know what is the real situation, and it is most of the time not what you read on the internet, or at least much more complicated.
 
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