Trading for a living & taxes in EU

mccc said:
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?
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I'm in a very similar situation. I have now moved to Estonia. The summer here is alright. I wonder if you have any new thoughts or experiences?
 
est1 said:
I'm in a very similar situation. I have now moved to Estonia. The summer here is alright. I wonder if you have any new thoughts or experiences?
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The current weather is abnormally warm for may, don't expect this to be the usual every year.
 
mh512 said:
Have you considered the "Beckham Law" in Spain ?

24% tax on 1st €600k for 6 years via a Company( can be non Spanish Company). Pay yourself a good wage and invest the rest abroad.
Structure your saving into a private annuity and move to Portugal after 6 year using the Portuguese NHR scheme !
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Not interesting anymore.
Beckham Law: Changes in 2015
On January 1st 2015 reforms of the Beckham Act take place again. On one hand, it excludes professional athletes from this regime. However, there is no retroactive effect, so that foreign players who had a contract in force were not affected by that modification.
On the other hand, the limit of the € 600,000 per year disappears in order to benefit from the scheme. The higher incomes will tax 24% to 600,000 euros and from there to 45%.
Dividends, interests and capital gains tax a rate of 19% to 23%.
 
Normal tax regime is OK in Spain, not a tax haven by any means, but there are much worse jurisdiction. If you incorporate yourself, you would 25% corporate tax + 23% on dividends = 0.25 + 0.75 * 0.23 = 42% taxation in the top bracket. The first 2 years , the corporate tax is 15% I think. You pay yourself a small salary on the side to get free social security...
 
These tax threads are useless.

For at least 75-85% there will never be a need to move to a lower taxregion. It only makes sense if you make money, enough money...

From the remaining , the majority will never move too (too difficult with family, too far away...), or too lazy to make the step.
I meet in life too much people that told: I wish to move, or I wish to find another job, or I should divorce... But it stays a wish, they never do it, just repeat tgheir wishes over and over again for many years.
Same story with low tax regions.
 
schweiz said:
These tax threads are useless.

For at least 75-85% there will never be a need to move to a lower taxregion. It only makes sense if you make money, enough money...

From the remaining , the majority will never move too (too difficult with family, too far away...), or too lazy to make the step.
I meet in life too much people that told: I wish to move, or I wish to find another job, or I should divorce... But it stays a wish, they never do it, just repeat tgheir wishes over and over again for many years.
Same story with low tax regions.
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Except that once u live as an expat u meet plenty of expat families who have made the move, often more than once - many of them through corporate arrangements but not only.
Ime it s much more difficult to organize once one get married with kids ( I still have switched continent 3 times since having the first kid) but many readers are still probably single.
Worthy discussion, just a bit of a shame information is scattered through many similar threads
 
schweiz said:
These tax threads are useless.

For at least 75-85% there will never be a need to move to a lower taxregion. It only makes sense if you make money, enough money...

From the remaining , the majority will never move too (too difficult with family, too far away...), or too lazy to make the step.
I meet in life too much people that told: I wish to move, or I wish to find another job, or I should divorce... But it stays a wish, they never do it, just repeat tgheir wishes over and over again for many years.
Same story with low tax regions.
More...


Very well said and I couldnt agree more.
Nowadays the only bullet-proof way is to move tax-residence (which I understand when you have a family/kids is more effort).
I am by far not an expert but 90% of the things I read on the internet regarding taxes is flat-out wrong or 'not completely' right which then leads to problems.

What I am not completely sure yet is if you put all your trading into a company (Cyprus for example which has 0% tax on stock trading and 12.5% corp tax on other trading gains).
If then you live in a country like Malta for example where you can receive dividends of your company tax-free ( as long it is not remitted to Malta but to bank account in another country ) this could be an option to fall into the professional trading scheme vs Cap Gains.
What do you think about that or am I missing something?

I spoke to different tax lawyers and didnt have always the same answers.
 
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