Trading for a living & taxes in EU

[schweiz]

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)

Whether it is low oer not, depends of how your net assets are composed.
For exampe if you only trade 25% of your net assets and put the rest in a second house or a savings account, you pay 5.39% on 4 times your trading account, as you only use 25%. So the real taxation of your trading is then 4 times higher.

In that case the Bulgarian flat fee of 10% is cheaper as they only tax your profits, not your assets.

And if you really make good money like over 1 million a year, the Italian special taxation of flat 100K, no matter how much you make, is the cheapest.

So there is no overall cheapest taxation. Also cost of living, healthcare... can make a difference.
In Monaco you pay no taxes put buy or rent a flat is hugely expensive and will be more expensive then paying taxes for most people

You should first clearly analyze your total financial situation and kind of income before you can try to find out what is the best solution for you.

 

[Pekelo]

In general, but specially inside the EU (or inside the USA) it is much easier to lower drastically your cost of living, then changing your tax status. Earn money in the West and live in the East or South.

So if you wouldn't mind to move to another country for a different taxation, why don't you move there just for the much lower cost of living? As long as it belongs to the EU you can actually live there as a resident (as far as I know) and enjoy the cheaper life...

numbeo.com for your comparison service

 

[henry76]

The BBC case was an IR35 issue (specific tax regulations to deal with cases where you are paid as if you are an independent contractor with all the rights to substitute, choose hours and make decisions over how you work but actually looking at what you actually do you are more like an employee). When IR35 came in (in year 2000) things were a lot worse in terms of tax cheating because there were no hard rules to stop people doing this. It was rife in IT world for example.

Yeh the money was paid into a "personal service company" apparantley.
Paxman said the same thing , the BBC asked him to form a company into which he would be paid.
Surely these are companies formed in order to avoid taxes no?
What's more the revenue for HMRC has generally been rising from "cracking down" on TAX evasion , not proof, but a good indication it's probably on the increase.

 

[w4rri0r]

And if you really make good money like over 1 million a year, the Italian special taxation of flat 100K, no matter how much you make, is the cheapest.

really? can you provide some links?

nevermind..I got it

one condition is you HAVE to transfer your tax residence to Italy .... so they are telling you " if you do it, you will pay only 100K " only on assets helded outside italy.... but .... as italian resident....they will rape your accounts and find a way to fine you and ask more and more money ...

 

[schweiz]

really? can you provide some links?

nevermind..I got it

one condition is you HAVE to transfer your tax residence to Italy .... so they are telling you " if you do it, you will pay only 100K " only on assets helded outside italy.... but .... as italian resident....they will rape your accounts and find a way to fine you and ask more and more money ...

You never heard of fiscal rulings apparently...
and you also don't understand anything about Italian taxation...
Definitely you need professional advice. I hope you got that too.

 

[w4rri0r]

You never heard of fiscal rulings apparently...
and you also don't understand anything about Italian taxation...
Definitely you need professional advice. I hope you got that too.

i will

 

[w4rri0r]

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.

https://www.expatica.com/nl/finance/Understanding-the-Dutch-income-tax-system_103981.html

based on the

"Dutch income tax calculator"

a 50k year gross will be taxed at 32%, 100k gross will be taxed at 42%, 1000k gross will be taxed at 51%

 

[w4rri0r]

i will

this is from Italy, yesterday

HOW TO AVOID IRS AGENCY TAX INSPECTION:
1) never put money in your account if you can't prove they are legitimate, you will be suspectec of bribery
2) never save more money than the average, you will be suspectec of bribery
3) never accept wire tranfer from your parents or relatives, you will be suspectec of tax evasion and/or money laundering

looks like a real nice place to live isn't it?

 

[HobbyTrading]

based on the a 50k year gross will be taxed at 32%, 100k gross will be taxed at 42%, 1000k gross will be taxed at 51%

Yes, that is the income tax. On top of that you also have to pay capital tax, which is based on the total value of your capital. Roughly speaking (this is Dutch so the real calculation is very complicated) is it about 1.5% if you have let's say 1 million Euro in capital.

 

[mccc]

Similar question here. I made a killing daytrading bitcoin over the past year (>1m), and I'm looking to move my permanent residency to an other country to reduce my taxes on future profits. In my native country (Belgium) it's considered professional income so it's taxed at income tax, up to 50%. I've heard some dutch traders say they only pay the wealth tax, but it's not clear whether daytrading is considered normal wealth management or a professional income which would be taxed by income tax. I want to do everything legally, and I'm willing to move anywhere that's safe and taxed under 20%, preferably with some sun What do you guys recommend?