Did I cover your country? If not, how are ETFs taxed where you live? :) 🇪🇺Interactive Brokers: angelo.fi/ibkr 🇪🇺Trade Republic: angelo.fi/tr 🇪🇺Scalable Capital: angelo.fi/sca 🇦🇹Flatex: angelo.fi/flatex 🇦🇹ETF Tax Comparison (Austria): angelo.fi/kest 👉Compare ETFs: angelo.fi/comp ⚡Where I buy crypto: angelo.fi/bit 💶4% interest savings account: angelo.fi/save
@@Dbskeptic I recommend buy Irish UCITS ETF (accumulating). US ETF are problematic because of the estate tax, in case of death amount of cash/stocks/us etf above 50K USD would be lost. A good book to read: Millionaire Expat from Andrew Hallam'', it includes list of ETFs based on the region you live or plan to retire.
Low Tax List Summary - Greece: No CGT on UCITS - Bulgaria: No CGT on UCITS (European brokers only); 5% tax on div - Cyprus: No CGT in general; 17% on div for residents - Slovakia: 19% CGT if sold in less than 1 year; 0% CGT if sold after 1 year; 7% on div - Croatia: 12% both on CG and div but only if sold in less then 2 years - Czech Republic: 15% on CG only if sold in less then 3 years - Hungary: 15% on CG and dividends; TBSZ accounts (long term investment) 10% after 3 years and 0% after 5 years - Belgium: No CGT; 30% on div; beware of TOB tax on buy and sell transactions (three rates: 0,12%, 0,35%, 1,32% depends on the ETF); 0,15% wealthy tax on over €1M investments - Slovenia: CGT 15y 0%
Luxembourg wasn't mentioned, but you can invest tax free in any type of security/fund, EU or non-EU, if you hold for at least 6 months. Dividends are taxed 15% and interests 20%. I can also confirm that UCITS ETFs are tax free in Greece. Great video btw! Cheers
Here are two: www.taxexperts.eu/en/an-overview-of-distributions-and-capital-gains-taxation-in-greece and assets.kpmg.com/content/dam/kpmg/gr/pdf/2023/04/gr-investment-in-greece-guide-04042023.pdf The special solidarity contribution on individual income mentioned in the second link seems to have been abolished in 2023.
@steliosprokopiou29 & @AngeloColomboFi thank you very much both for this amazing work and for this particular comment Stelios - can you be so kind and elaborate on the Lux part? So tax free for holdings (stocks or accummulating UCITS ETFs) for anything that is held longer than 6 months? Does that include US stocks (that don't pay dividends, which would otherwise be taxed with 15% i take it) ? Appreciate it, and also some extra resources to deepdive in english if there are any. God bless!
@@rugginic well you would need to leave to retire within 5/6 years to ensure your tax residency left Ireland before the 41% tax on unrealised gains was applied. So you don’t really get long to build a fund before being taxed.
7:36 For Germany: Stock ETFs are 30% tax exempt, so the ETF tax ist 26,375*0.7 = 18.4627% for capital gains and dividends. Also the first 1428.57€ are free of tax each year and it is double the amount if you are married. So it is not as bad as it looks in the video.
Thank you for doing this. Although I have no connection to Europe (neither residency or investments) I welcome seeing more ETF/stock channels with an international perspective. I see so many American, Canadian, and Australian channels where the presenters assume the viewers know where they are. You make it obvious and clear *where* you are talking about. Rare!
Thanks for this video Angelo. As a foreign living in Austria and having to deal with all this complexity in german language seems to be hell on earth. As I also invest via Interactive Brokers, I would be forever greatful to you if you make a video showing how you do the calculation of your taxes for your etfs in Austria
It's indeed insanity to do ETF taxes for non-tax-easy brokers in Austria, so I highly recommend switching to a tax-easy broker like Flatex (or Dadat), if you don't want to spend 400 hours a year learning Austrian tax law.
you should just use a broker which automatically transfers the capital gains tax to the tax office spare yourself the hassle of austrian/german tax system
Hey, French viewer here. A small detail on PEA: we also have access to major international ETFs (msci world, S&P500...) its just that the emitting financial company has to be based in Europe and has to replicate synthetically the index and not holding the actual shares if from Non-European companies
Correct, In a PEA you can purchase synthetic ETFs which replicate the performance or S&P500 (ESE), MSCI World (CW8), NASDAQ 100 (PANX) etc... After 5 years you will pay a reduced tax of 17.2% (social security) on capital gains when withdrawing from the account.
Check this information, as you may be misleading regarding dividends. You may still need to pay taxes on dividends from accumulating ETFs, even though the dividends are not distributed to you directly but are automatically reinvested within the fund. ETFs can still be taxed under a 'deemed dividend' or 'prepayment' system, where you're taxed as if you had received the dividends, even though they were reinvested.
i am surprised that Belgium has low tax on something...
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I am an expat living in Austria and this video was just what I was looking for thank you! It is so painful to find good quality information about how the tax system works here. I really like Trade Republic's offering I hope they become "easy-tax", until then I really only have one option (Flatex). I would really appreciate if you could make a video on how you do your taxes in Austria there must be a lot of people struggling with this, especially expats. Thanks again!
Hi Angelo, sadly you didn't cover my highly taxed country of Denmark. Here we pay an insane amount of tax both on income and on stocks (+ETFs). It is a complex system with many nooks, but basically you pay 42% on every gain above 8k euro. Up to 8k euro you pay 27%. Keep up the good work. I've enjoyed your channel for some time now.
Hi Daniel, I shortly looked at Denmark as well, but ran out of time. So I decided to call it quits after 22 countries :) Here's the part that shocked me even more than the 42% tax on its own: "While sale of ordinary shares is taxable based on a realisation principle, a so-called mark-to-market taxation is applied on certain investment funds, ETFs, etc., which implies that each year taxable gain/loss is to be declared even though a sale has not actually occurred. The gain/loss is determined based on the market value at the start of the year compared to the value end of the year (values for start and end of the year will be changed to value upon arrival/departure if moving to/out of Denmark during the year). Value is to be converted to Danish kroner using the exchange rate at start of the year/end of the year, so this will cover both gain due to increase in value of the investment fund, etc. and gain due to currency fluctuations." taxsummaries.pwc.com/denmark/individual/income-determination Can you confirm that you have to fully tax unrealized ETF profits at the end of every year? That would be crazy!
Hi@@AngeloColomboFi sorry for the late response, but YES. For special accounts and for ETFs you are being taxed every year on the profits of the account at the end of december. For normal shares you get taxed when you realize the profits. Also there is special accounts but you can only put around 19000 euro in them max. On these accounts you get taxed 17% but still at the end of every year of the profits. Best Daniel
I find this incredibly helpful! Thank you, Angelo. I'm also based in Austria and currently use Interactive Brokers. Surprisingly, I've just learned about the yearly tax implications through your video. Would you consider creating a video tutorial demonstrating how to generate a tax report specifically tailored for Austrian users on Interactive Brokers?
Sorry about that! I considered including Switzerland, the UK and more Nordic countries as well, but I had already spent so much time on my research that I decided to call it quits after number 22!
Very informative and exactly what I was looking for. What a coincidence that this video was published yesterday! For now, I'll just stay in the 4% trade republic account. I'm planning on chaining in the next 6 months but I need to go over stuff carefully before making decisions
Dear Angelo for Germany, you forgot the mention the 30% tax freedom (ie. you multiply taxes w factor 0.7) for any Funds containing >50% stocks. That takes you to around 19%. No guaranties, but I am living there and suffer fron these high taxes :-)
My pleasure! Who else would honestly spend time making a video about this? 😅 I'm grateful to have such a wide-ranging group of investors watching my videos! 🙏
without your excel list i would have definitely gotten into some random bad etf to pay indifinite taxes in austria, thank you angelo, im so happy that i have found this channel
Damn das ist der erste TH-cam wo der Kommentar Bereich mal gepflegt ist und nicht alles voll mit diesem bots ist die iwelche Finanzberater empfehlen xD Schöner Kanal da es diesmal nicht aus der US-Amerikanischen Sicht ist ^^
Ireland's 41% tax is awful and the Deemed Disposal rule is so stupid as it means less money for investors and less taxation for the government. It makes no sense.
Hi Angelo, I am so thankful to find your channel. I am from a 3rd world country but now studying and working in Austria. I could not find any videos in Investing in Austria in English. This video was something that I was looking for. Do you happen to have any video on filling capital gain, dividend and savings interest tax in Austria? It would be greatly helpful if you have a video for that or decide to create one. That would be greatly helpful! Thank you in advance!
I cannot find the words to thank you enough for those amazing videos you make. This one in particular is so useful. we learnt so much through you. Thank you Angelo. 🙏
Engineering approach to finance subject appreciate the huge research behind. Thanks Angelo. Tax is always a hindrance for retail investor and Turkey is not an exception, please note that the shown 0 % tax is for Turkish stock exchange only and for now ! When it comes to capital gains and dividends abroad it is between 27-40 % .
Poland has some pension 'containers' that allow you to reduce taxation to 10% or even 0% if you withdraw profits after the age of 55/60. They're called IKE, IKZE and OIPE
What a great and helpful video, Angelo! I have had doubts about the pre taxes in Austria and thought they would be much higher, so it’s very reassuring to know they are actually quite low - thanks a lot for sharing your experience!
I'm glad you found it useful and that it eased your mind a bit! As long as you pick the right ETF, they're really not too bad. Even Germans had to pay 68% more tax via their Vorab-Pauschale on their Acc. Vanguard FTSE All-World ETF last year compared to us in Austria :)
Angelo your videos are so informative, light and clear in the message. Keep it up! Sending you all the best. This specific video is so far the best of it’s kind. I just hope the EU deepens integration soon to end this madness of differences in regulations and tax systems once and for all hahah
Hello from Greece excellent channel you are an oasis for European investors, I have to mention as native Greek in theory no tax on accumulating, no tax on dividends pay but due to huge bureaucracy,dividend pay is in fact a taxable event with no tax but you have to declare every event and wait when the government to issue the return. There are cases that dividends were taxed and you had to present the double taxation agreement as proof between domicile and Greece and wait maybe month for the return of tax to be issued because Greece is years behind in terms of investing management. So imagine on every dividend yield + investing more capital + withdrawals you have to make declarations and proofs and more bureaucracy and then wait for tax return tedious very fast Go accumulating better
Found this (assets.kpmg.com/content/dam/kpmg/gr/pdf/2023/04/gr-investment-in-greece-guide-04042023.pdf) : Tax exempt investment income Depending on the type of financial instrument, different tax treatment applies on the investment income arising therefrom. For example, amongst others, interest income from Greek State Bonds, capital gains from Greek and EU/EEA corporate bonds, capital gains from EU/EEA registered UCITS (Mutual Funds) are exempt for income tax purposes, but are however still subject to solidarity contribution.
Special solidarity contribution The special solidarity contribution to which total annual income (actual or imputed) was previously subject (based on a progressive scale ranging from 0% to 10%) is abolished as of 2023.
Thank you for saying that, it means a lot! And thank you for sharing your insights on bureaucracy surrounding dividends. I guess it's best to pick accumulating ETFs in Greece as well then.
Angelo, Why are you going after the Vanguard FTSE All-World UCITS after all? It still consists of mostly US companies - 57,80% and gives you only 20% in a good year. Not much diversification for that significant price. Even the very basic Vanguard S&P 500 UCITS ETF - gives you 6%+ right away.....
I'm not sure what you mean, are you referring to the higher returns we've seen from US stocks over the past few years? I certainly can't complain about my returns either and I prefer diversifying globally long-term vs. being all-in on a single country. But you should do whatever you're the most confident in!
Discovered your channel recently and just cant thank you enough that you talk abt Europe investments and in English. Thank you so very much. Could you please make a video abt how you plan to sell your Acc. ETF once you reach your goal. I still do not understand how can i achieve financial independence/how to get monthly income with Accumulating ETF after reaching the savings goal. There are also taxes to consider with selling etc. Would really appreciate if you could pls explain this and share your own plans as an example. Would be greatly helpful. Thank you 🙏
Ciao Angelo, as usual many thanks for the great content, which remains a flagship for European investors. Could you please share the source of the information for the taxation in Belgium? Thanks!!
Thanks Angelo! Taxes aren't covered enough and are hugely important re: compounding, so it's great you're raising this point. It's quite disappointing that many EU countries don't offer tax advantages like the US or UK on ETFs, though good to know that some do. Time to move to Greece I wonder? 😊
With the PAE in France, we can still invest in MSCI World, S&P500 or emerging markets with ETFs using synthetic (and not physical) replication strategy. For example, we have the well know Amundi MSCI World UCITS ETF EUR (C), and the newcoming iShares MSCI World Swap PEA UCITS ETF EUR (Acc), that can be completed for example with the Amundi PEA MSCI Emerging Mkt ESG Leaders UCITS ETF and the Amundi PEA Japan Topix UCITS ETF. The list of ETFs is limited, but enough to build a good ETF strategy with nice tax advantages.
You are almost right with Germany. There is capital gains tax of 25%+5,5% soli, it is about 26,375 for stocks and dividends BUT there ist 30% cut on etf taxes. This lower etf capital gains and etf dividend tax to about 18,5% and there is also 1000€/year tax free allowance for gains and dividends so it cover for example this yearly tax from etf capital gains for most of etf buyers and lower tax year after year for buy&hold etf investors. This yearly gain tax for etf is made specially for ppl getting etf to use this allowance and drop their capital gain taxes after many years of holding etf. There are quite few strategies to use all of tax cuts in Germany :)
Great video! Do you know if I have to pay capital gain taxes in Germany, if I bought ETFs in Germany under IBKR account and then moved to other country, e.g. Greece or Switzerland?
Here in the UK the dividends from accumulation or income ETFs is taxed exactly the same. Even if you don't receive the dividend in your account it's called a notional dividend. I'm surprised that this is not the same in all countries. This video may mislead people into thinking their accumulation ETF dividends are not taxable
Like yourself, I am in UK and was surprised to hear about how reinvested dividends can be treated as capital. I researched further and found what follows at website named etfstream: Tax-wise, UK investors need to pay income tax annually on dividends, regardless of whether they are distributed or accumulated, but they can subtract these out later for capital gains tax. As a result, the long-term tax result from both distributing and accumulating funds and ETFs is identical. In some EUROPEAN countries, investors do not have to pay taxes on dividends that they do not receive in their bank account. In this instance, holding accumulating ETFs could give a useful tax advantage over distributing ones. Selecting between accumulating and distributing ETFs boils down to personal financial goals and regional tax implications. Accumulating ETFs suit long-term growth seekers by reinvesting dividends while distributing ETFs provide regular income. Given the tax differences across countries, investors should consider their income needs and tax situation to make a choice that aligns with their investment strategy.
For France, PEA decrease tax to 17,2% (instead of 30%) after 5 years, plus international stock are available by synthetic etf (msci world sp500 .etc...) Life insurance is also a good tool to decrease from the 30%, it has more supports to choose from but it's primarily a tool to decrease succession tax (after the owner's death)
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Thanks for the video, I live in Estonia so I can add you can postpone capital gain as long as you want if you don’t withdraw more money than you contributed by using an investment account or investing through a company which is fairly easy here 👍 That’s a good system to help compounding profits without any taxes as long as the money is not needed😉
GOOD CONTENT!!! Very engaging right from the beginning These are tough times and frankly I appreciate how you discuss global finances in such a delicate way. Business and investment are the best way to make money even under the nose of the pandemic.
One question: would it be worth it and possible to go to live in a country with low taxes just the year one want to sell his ETF? For example, living 20 years in your own country X, and the last year, moving to Greece for some time just to sell your parts? Thanks!
I have a question. What happens when you move to another country? Do you have to "cash out" and then reinvest in the other country? Or just tell your broker that you moved? How does taxation work when moving to another country?
Hello Angelo, in Slovakia there is slight change, while holding ETF less than year you need to pay 19% of income tax + 13.4% of health insurance tax, so in total approx 34%, so its very very worth it to hold it for more than one year, you can introduce FIFO if needed when you need to withdraw some money.
Great video Angelo! it will be interesting to cover the rest of the world as well (continent by continent to avoid a 6000 minutes video), starting from UK and maybe some tax heaven countries.
Hi Angelo, great video as usually, thanks :) I was wondering if you are planning to do a tutorial video for interactive brokers as it is bit tricky to navigate for basic users. All the best
Hi, Angelo thank you so much for your videos.I am living in Greece and I will start the 1 etf portfolio with vanguard ftse.I am little bit confused about the stock exchange I should buy.I will use IBKR and the ticker VWCE its for ibis2 Germany. I should buy this with euros or try to buy VWRD london with usd.Tahnk you again
Portugal changed the taxes for long term investments. I'm not sure when the new law starts but taxes will reduce to 19% to investments longer than 8 years.
When you move from one EU country to another and hold a position in an ETF (Exchange-Traded Fund), you might be subject to what is known as an "exit tax." Exit taxes are designed to tax the unrealized capital gains of assets when a taxpayer moves their tax residency from one jurisdiction to another. The specifics of how exit taxes are applied can vary significantly between different EU member states, as tax laws are largely determined at the national level within the EU. Here are some general points to consider: 1. Definition and Purpose: An exit tax aims to ensure that a country can tax the increase in value of certain assets (like shares in an ETF) that accrued while the taxpayer was a tax resident of that country, even if the taxpayer moves to another country before realizing those gains by selling the assets. 2. Triggering Events: The tax is typically triggered by the change of tax residency. If you move from one EU country to another and change your tax residency, this could be considered a disposal of assets for tax purposes in the country you are leaving, potentially triggering the exit tax. 3. Calculation: The tax is generally calculated based on the unrealized gains of the assets at the time of moving. This means the difference between the market value of the assets at the time of the move and their purchase price. 4. Payment and Reporting Requirements: The specifics of how and when the exit tax is paid, and what reporting requirements must be met, can vary. Some countries offer payment deferrals, installment plans, or exemptions under certain conditions. 5. EU Regulations and Court Rulings: The EU has principles regarding the freedom of movement for persons, capital, and services. Some exit tax regimes have been challenged in the EU courts for potentially infringing on these principles. Consequently, some countries have adjusted their exit tax laws to comply with EU law, which often includes providing deferral options for payment or proving exceptions under certain conditions. 6. Double Taxation Agreements (DTAs): If the countries involved have a DTA, it might include provisions that affect how exit taxes are applied, potentially providing relief from double taxation. 7. Consultation with Tax Professionals: Given the complexity and variations in tax laws, it's highly advisable to consult with tax professionals in both the country you are leaving and the one you are moving to. They can provide advice tailored to your specific situation, including how to comply with exit tax requirements and optimize your tax situation.
Great video but just to add something about france. With a PEA account and using synthetic replication ETFs you can invest in anything. I am personally investing in SP 500 ETFs in my PEA account.
Hello Angelo. Amazing video. I live in Belgium. Can you please tell me where you got the data for the TOB tax? How did you find out that the purchase/sale tax was higher for Vanguard than for iShares and SPDR? What would it be for Invesco FTSE All-World?
As you didn‘t cover Switzerland 🇨🇭 I will make up for you: - no taxes on capital gains - dividends need to be added to your income and needs to be taxed as it - stamp taxes, everytime you buy or sell a share. National shares 0.075%. Int shares 0.15%. Notice: this tax is completely avoidable if you use a non Swiss broker like IBKR - ETF withholding taxes: the most attractive for us is to buy US domiciled ETF (only buyable through IBKR not any Swiss or EU broker). Here we can get back all withholding taxes as there is a tax agreement between US and CH. With irish domiciled ETF we always loose 15% withholding taxes which has to be paid to US. This is why most Swiss invest into US Vanguard World Stock ETF (VT) instead VWRL
Having the tax free TBSZ option in Hungary is one point in a very, very short list why it's good to live here. Even better since Interactive Brokers made this option available at their site, the hungarian brokers are much more expensive compared to them.
Yes, I wish we had something similar in Austria. But if we did, I'm sure Austrian brokers or insurance companies would charge ridiculous fees for it as well. Guess you got lucky that The IBKR founder is Hungarian :)
Hey Angelo, thanks for the video. Great reminder to me who is just about to buy my very first ETF's using some similar strategy like you. Just try to guess which country i live in the EU? Yes, man Denmark. We are taxed on dividends and gains 27% up to 51.000 dkk which is around 6.800 euros per year. Anything above that is what you just have in your panel 42% tax. I pay an income tax of 40% montly, but the services here are somewhat decent, can't complain on that. Anyways, it is better to invest to have some than procrastinate and have none in the future i guess, keep it up your great work!
Thank you! I think you have some investment/retirement accounts if I'm not mistaken, with slightly lower taxes. But in Denmark I find this part even worse than the 42% tax on its own: "While sale of ordinary shares is taxable based on a realisation principle, a so-called mark-to-market taxation is applied on certain investment funds, ETFs, etc., which implies that each year taxable gain/loss is to be declared even though a sale has not actually occurred. The gain/loss is determined based on the market value at the start of the year compared to the value end of the year (values for start and end of the year will be changed to value upon arrival/departure if moving to/out of Denmark during the year). Value is to be converted to Danish kroner using the exchange rate at start of the year/end of the year, so this will cover both gain due to increase in value of the investment fund, etc. and gain due to currency fluctuations." taxsummaries.pwc.com/denmark/individual/income-determination
Hi Angelo! You forgot Luxembourg. No capital gains tax on instruments held more than 6 months, and and no income tax on dividendes under EUR 15,000.00.
Thanks for your efforts! Here in Spain you have to pay tax on absolutely everything so the politicians and unemployed can live well. ETFs should be tax free everywhere - investors assume risk and support the economy. If things go badly nobody helps you but if they go well you have to divide your profits with the state. This is after paying tax on the money you used to invest in the first place. Criminal.
My pleasure! I would also like that, but then the majority of the population, which doesn't invest in stocks/ETFs would likely complain that "the rich are getting richer" etc.
How can i calculate how much pre-tax in Austria for the iShares MSCI ACWI Acc? Is it astronomically high if i hold around 500k in it? I heard its not as bad as it sounds, but i just wanna avoid bad surprises
In Germany you only have to pay taxes on 70% of your gains if the ETF invests at least 51% into stocks. Which applies to all the standard ETF's people are using
I have a portfoli of four etfs the vanguard s&p 500, Vanguard FTSE develop, iShares NASDAQ 100 and iShares Automations and Robotics. Is that too much, should I just stick to one, and if yes which one?
In my opinion among the four the Vanguard FTSE Developed World would be enough, as it includes all the stocks from the other 3 ETFs + other developed countries.
You forgot Andorra. 0% tax. VWCE Real annual growth rate: 5.86%, and 0.2% maintainance fee, since 2003. Why?! Invesco S&P 500 UCITS ETF costs 0.05% and has real return of ~7%.
Very interesting video. Do you have any information on whether you pay capital gains taxes considering the country where you originally bought the ETFs or the country you are living when you are selling them? Does this vary a lot between countries? This can be useful when planning retirement.
There's more about Ireland (if investing in shares). If you are non-domiciled, as long as your profits stay outside of Ireland, you don't pay tax. Basically, Ireland punishes its own locals while it benefits those who are passing through.
I think it depends on the country you're leaving - some have "exit taxes", which may force you to tax unrealized profits in the country you're leaving when making the switch to Greece. The broker itself would not be the issue, you can keep your shares at IBKR as a Greek resident.
I believe there is no need to transfer to a different broker. If you have IBKR you will just have to update your residency if you become a Greek resident. In some scenarios when you move from a low tax to high tax country it might be needed to sell your portfolio before moving to the other country. This way you don't pay tax in the new country on capital gains you made before moving...
Hello Angelo! Do you know how a non-resident of Netherlands get taxed if he owns NL stocks? ( I know that is 15% on dividends but i can't find info about the capital gains). Also do they also file tax papers for Netherlands and fill those box1 box2 ect?
Did I cover your country? If not, how are ETFs taxed where you live? :)
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0% in Qatar/UAE but in the future I will most probably retire in a Mediterranean country like Spain, Greece, Croatia, Cyprus, Portugal.
@@yayadxbdoh @angelocolombofi what ETF you'll recommend for UAE residence? It's tax free on capital gains but we pay taxes on the US dividends
@@Dbskeptic I recommend buy Irish UCITS ETF (accumulating). US ETF are problematic because of the estate tax, in case of death amount of cash/stocks/us etf above 50K USD would be lost. A good book to read: Millionaire Expat from Andrew Hallam'', it includes list of ETFs based on the region you live or plan to retire.
What about in Luxembourg?
what about Finland?
Low Tax List Summary
- Greece: No CGT on UCITS
- Bulgaria: No CGT on UCITS (European brokers only); 5% tax on div
- Cyprus: No CGT in general; 17% on div for residents
- Slovakia: 19% CGT if sold in less than 1 year; 0% CGT if sold after 1 year; 7% on div
- Croatia: 12% both on CG and div but only if sold in less then 2 years
- Czech Republic: 15% on CG only if sold in less then 3 years
- Hungary: 15% on CG and dividends; TBSZ accounts (long term investment) 10% after 3 years and 0% after 5 years
- Belgium: No CGT; 30% on div; beware of TOB tax on buy and sell transactions (three rates: 0,12%, 0,35%, 1,32% depends on the ETF); 0,15% wealthy tax on over €1M investments
- Slovenia: CGT 15y 0%
Ireland makes me cry.. Thanks Angelo, very informative!
Yeah. Apparently Ireland lets their citizens pay for the tax evasion of big worldwide corporations in Ireland.
@@PaintrainX tax avoidance, not evasion
Is there a way to avoid this ridiculous taxes on ETF? I am a Romanian migrant living in Ireland.
@@igorpresinte9320 what I chose to do is pick the first 12/15 stocks of the SP500. not much difference in returns.
Obrigado pelo teu trabalho Angelo , uma abraço de portugal.
So much effort in this video for the viewers and so accessible... thank you so much for this work
Luxembourg wasn't mentioned, but you can invest tax free in any type of security/fund, EU or non-EU, if you hold for at least 6 months.
Dividends are taxed 15% and interests 20%.
I can also confirm that UCITS ETFs are tax free in Greece.
Great video btw! Cheers
hey! Can you share the source about UCITS being free in Greece? Couldn't find it anywhere.
Here are two: www.taxexperts.eu/en/an-overview-of-distributions-and-capital-gains-taxation-in-greece and assets.kpmg.com/content/dam/kpmg/gr/pdf/2023/04/gr-investment-in-greece-guide-04042023.pdf
The special solidarity contribution on individual income mentioned in the second link seems to have been abolished in 2023.
@steliosprokopiou29 & @AngeloColomboFi thank you very much both for this amazing work and for this particular comment Stelios - can you be so kind and elaborate on the Lux part? So tax free for holdings (stocks or accummulating UCITS ETFs) for anything that is held longer than 6 months? Does that include US stocks (that don't pay dividends, which would otherwise be taxed with 15% i take it) ? Appreciate it, and also some extra resources to deepdive in english if there are any. God bless!
Also wanted to mention Luxembourg, but you already did a great job summarizing the taxes 👍
thats so cool that you mentioned countries of viewers. Lithuanian here :D
Great video Angelo. Irish here, I'll send this video onto the politicians!
When I saw the caption with 41% I knew we were on top of the list! 😅😅😅
@@ronanhunt88 same here 😂
What if you buy all your ETF while living in Ireland but you retire in Greece?
@@rugginic well you would need to leave to retire within 5/6 years to ensure your tax residency left Ireland before the 41% tax on unrealised gains was applied. So you don’t really get long to build a fund before being taxed.
Discusting how us Irish are taxed it really is, as u said we should be rallying our politicians to enact change.
7:36 For Germany: Stock ETFs are 30% tax exempt, so the ETF tax ist 26,375*0.7 = 18.4627% for capital gains and dividends. Also the first 1428.57€ are free of tax each year and it is double the amount if you are married. So it is not as bad as it looks in the video.
Compared to some other countries IT sucks hahahha
Getting taxed 40% on your paycheck and then another 20-30% on your investments. Thats just crazy
I’m in Ireland. 33% CGT. 😮😮😮😮 33%!!!! 😢
Thank you for doing this. Although I have no connection to Europe (neither residency or investments) I welcome seeing more ETF/stock channels with an international perspective. I see so many American, Canadian, and Australian channels where the presenters assume the viewers know where they are. You make it obvious and clear *where* you are talking about. Rare!
Thanks for this video Angelo. As a foreign living in Austria and having to deal with all this complexity in german language seems to be hell on earth. As I also invest via Interactive Brokers, I would be forever greatful to you if you make a video showing how you do the calculation of your taxes for your etfs in Austria
This I woud also appreciate
Would also appreciate this for Germany, as a foreigner here I have the same struggle.
It's indeed insanity to do ETF taxes for non-tax-easy brokers in Austria, so I highly recommend switching to a tax-easy broker like Flatex (or Dadat), if you don't want to spend 400 hours a year learning Austrian tax law.
Same here! Do it Angelo!
you should just use a broker which automatically transfers the capital gains tax to the tax office spare yourself the hassle of austrian/german tax system
Hey, French viewer here. A small detail on PEA: we also have access to major international ETFs (msci world, S&P500...) its just that the emitting financial company has to be based in Europe and has to replicate synthetically the index and not holding the actual shares if from Non-European companies
Correct, In a PEA you can purchase synthetic ETFs which replicate the performance or S&P500 (ESE), MSCI World (CW8), NASDAQ 100 (PANX) etc... After 5 years you will pay a reduced tax of 17.2% (social security) on capital gains when withdrawing from the account.
Check this information, as you may be misleading regarding dividends. You may still need to pay taxes on dividends from accumulating ETFs, even though the dividends are not distributed to you directly but are automatically reinvested within the fund. ETFs can still be taxed under a 'deemed dividend' or 'prepayment' system, where you're taxed as if you had received the dividends, even though they were reinvested.
Belgium @3:20
no capital gain tax but minor purchase and selling tax (~1%)
Dividend from etf will be taxed so take accumulating etf
Fantastic you cover a small country like Belgium 🇧🇪 keep up the excellent videos of late
Belgium stonks 📈
@@vladpolyanskiy9602 investing in Belgium might be nice but I’m very unsure wether Belgian stocks would be a good addition to anyone’s portfolio 😅
i am surprised that Belgium has low tax on something...
I am an expat living in Austria and this video was just what I was looking for thank you! It is so painful to find good quality information about how the tax system works here. I really like Trade Republic's offering I hope they become "easy-tax", until then I really only have one option (Flatex). I would really appreciate if you could make a video on how you do your taxes in Austria there must be a lot of people struggling with this, especially expats. Thanks again!
Asked for the Austrian tax guide many time, but Angelo keeps ignoring 😅
Hello from HELLAS!!!
🇬🇷🇬🇷🇬🇷🇬🇷
Hey I'm an Italian who just moved to Greece. I will start my etf investing here I guess. What do you use as a broker? Thnks
Which Broker do you use in Greece?
Degiro and freedom 24
Great video, Irish here, it’s individual stocks or nothing, going to canvas my local TD after this, thanks for the motivation👍
Thank you so much Angelo for the video. Hope policies change for good in the Netherlands.
Yeah this is such a needed change. Wealth taxes are a pain, especially when not even making profit.
thanks for including Bulgaria despite being such a small percent of the portfolio ^^
Hi Angelo, sadly you didn't cover my highly taxed country of Denmark. Here we pay an insane amount of tax both on income and on stocks (+ETFs). It is a complex system with many nooks, but basically you pay 42% on every gain above 8k euro. Up to 8k euro you pay 27%.
Keep up the good work. I've enjoyed your channel for some time now.
Hi Daniel, I shortly looked at Denmark as well, but ran out of time. So I decided to call it quits after 22 countries :)
Here's the part that shocked me even more than the 42% tax on its own:
"While sale of ordinary shares is taxable based on a realisation principle, a so-called mark-to-market taxation is applied on certain investment funds, ETFs, etc., which implies that each year taxable gain/loss is to be declared even though a sale has not actually occurred. The gain/loss is determined based on the market value at the start of the year compared to the value end of the year (values for start and end of the year will be changed to value upon arrival/departure if moving to/out of Denmark during the year). Value is to be converted to Danish kroner using the exchange rate at start of the year/end of the year, so this will cover both gain due to increase in value of the investment fund, etc. and gain due to currency fluctuations."
taxsummaries.pwc.com/denmark/individual/income-determination
Can you confirm that you have to fully tax unrealized ETF profits at the end of every year? That would be crazy!
Hi@@AngeloColomboFi sorry for the late response, but YES. For special accounts and for ETFs you are being taxed every year on the profits of the account at the end of december. For normal shares you get taxed when you realize the profits. Also there is special accounts but you can only put around 19000 euro in them max. On these accounts you get taxed 17% but still at the end of every year of the profits.
Best Daniel
similar thing also applies to Germany @@AngeloColomboFi
@@danielmadsen9115 This is crazy. You invest your hard earned (and heavily taxed) money and then you have to pay taxes on top of that
@@AngeloColomboFi yup, that's basically it. Worse country in the world by far.
Really happy to see European focused investment content. 🇸🇪
He did not mention sweden though, or dis i miss it?
@@bjorkthetree No he didn't. But it's closer than a US/Canada focus.
I find this incredibly helpful! Thank you, Angelo. I'm also based in Austria and currently use Interactive Brokers. Surprisingly, I've just learned about the yearly tax implications through your video. Would you consider creating a video tutorial demonstrating how to generate a tax report specifically tailored for Austrian users on Interactive Brokers?
Thanks for this sum-up! Bit disappointed you didn't cover Switzerland 😉 Maybe next time 👍
Sorry about that! I considered including Switzerland, the UK and more Nordic countries as well, but I had already spent so much time on my research that I decided to call it quits after number 22!
@@AngeloColomboFi Fair enough 😁
Great video, as usual! Thank you😊
It's just 0% tax on capital gains, isn't it?
I guess plus Stempelsteuer.
Very informative and exactly what I was looking for. What a coincidence that this video was published yesterday!
For now, I'll just stay in the 4% trade republic account. I'm planning on chaining in the next 6 months but I need to go over stuff carefully before making decisions
Great summary! 🎉
Hello from a happy investor in Belgium 🇧🇪
Dear Angelo for Germany, you forgot the mention the 30% tax freedom (ie. you multiply taxes w factor 0.7) for any Funds containing >50% stocks.
That takes you to around 19%.
No guaranties, but I am living there and suffer fron these high taxes :-)
True! It's taken into account when calculating the "Vorabpauschale" as well.
Angelo, that is something I was looking for such a long time. Great comparison for Europeans! Thank you so much!
My pleasure! Who else would honestly spend time making a video about this? 😅
I'm grateful to have such a wide-ranging group of investors watching my videos! 🙏
I find it challenging to research about my own country Netherlands 😅, and you have researched so many countries! Amazing research and video!
without your excel list i would have definitely gotten into some random bad etf to pay indifinite taxes in austria, thank you angelo, im so happy that i have found this channel
I'm really happy to hear that! 🙏
Damn das ist der erste TH-cam wo der Kommentar Bereich mal gepflegt ist und nicht alles voll mit diesem bots ist die iwelche Finanzberater empfehlen xD
Schöner Kanal da es diesmal nicht aus der US-Amerikanischen Sicht ist ^^
Ireland's 41% tax is awful and the Deemed Disposal rule is so stupid as it means less money for investors and less taxation for the government. It makes no sense.
Thanks for the info about Austria!
Hi Angelo, I am so thankful to find your channel. I am from a 3rd world country but now studying and working in Austria. I could not find any videos in Investing in Austria in English. This video was something that I was looking for. Do you happen to have any video on filling capital gain, dividend and savings interest tax in Austria? It would be greatly helpful if you have a video for that or decide to create one. That would be greatly helpful! Thank you in advance!
I cannot find the words to thank you enough for those amazing videos you make. This one in particular is so useful. we learnt so much through you. Thank you Angelo. 🙏
Thank you for writing that, hearing this means a lot to me! 🙏
Engineering approach to finance subject appreciate the huge research behind. Thanks Angelo.
Tax is always a hindrance for retail investor and Turkey is not an exception, please note that the shown 0 % tax is for Turkish stock exchange only and for now !
When it comes to capital gains and dividends abroad it is between 27-40 % .
Cumprimento de Portugal e obrigado pela tua dedicação em fornecer informação relevante para toda a Europa.
Abraço
You're very welcome, sending a hug from Austria as well! 🇦🇹
Great job, this requires a ton of work. Thank you
Poland has some pension 'containers' that allow you to reduce taxation to 10% or even 0% if you withdraw profits after the age of 55/60. They're called IKE, IKZE and OIPE
What a great and helpful video, Angelo!
I have had doubts about the pre taxes in Austria and thought they would be much higher, so it’s very reassuring to know they are actually quite low - thanks a lot for sharing your experience!
I'm glad you found it useful and that it eased your mind a bit!
As long as you pick the right ETF, they're really not too bad. Even Germans had to pay 68% more tax via their Vorab-Pauschale on their Acc. Vanguard FTSE All-World ETF last year compared to us in Austria :)
This was very helpful, would be great to see more videos comparing European countries (Income tax, living expenses, social security, wealth tax etc.)
Angelo your videos are so informative, light and clear in the message. Keep it up! Sending you all the best. This specific video is so far the best of it’s kind. I just hope the EU deepens integration soon to end this madness of differences in regulations and tax systems once and for all hahah
Hello from Greece excellent channel you are an oasis for European investors, I have to mention as native Greek in theory no tax on accumulating, no tax on dividends pay but due to huge bureaucracy,dividend pay is in fact a taxable event with no tax but you have to declare every event
and wait when the government to issue the return. There are cases that dividends were taxed and you had to present the double taxation agreement as proof between domicile and Greece and wait maybe month for the return of tax to be issued because Greece is years behind in terms of investing management. So imagine on every dividend yield + investing more capital + withdrawals you have to make declarations and proofs and more bureaucracy and then wait for tax return tedious very fast Go accumulating better
When you are in retiring phase then it's probably not that difficult if you can just sell your accumulating ETF just once or twice a year ?
Found this (assets.kpmg.com/content/dam/kpmg/gr/pdf/2023/04/gr-investment-in-greece-guide-04042023.pdf) : Tax exempt investment income
Depending on the type of financial instrument,
different tax treatment applies on the investment
income arising therefrom. For example, amongst
others, interest income from Greek State Bonds,
capital gains from Greek and EU/EEA corporate
bonds, capital gains from EU/EEA registered UCITS
(Mutual Funds) are exempt for income tax purposes,
but are however still subject to solidarity contribution.
What is the solidarity contribution ?
Special solidarity contribution
The special solidarity contribution to which total
annual income (actual or imputed) was previously
subject (based on a progressive scale ranging from
0% to 10%) is abolished as of 2023.
Thank you for saying that, it means a lot! And thank you for sharing your insights on bureaucracy surrounding dividends. I guess it's best to pick accumulating ETFs in Greece as well then.
Angelo, Why are you going after the Vanguard FTSE All-World UCITS after all? It still consists of mostly US companies - 57,80% and gives you only 20% in a good year. Not much diversification for that significant price. Even the very basic Vanguard S&P 500 UCITS ETF - gives you 6%+ right away.....
I'm not sure what you mean, are you referring to the higher returns we've seen from US stocks over the past few years? I certainly can't complain about my returns either and I prefer diversifying globally long-term vs. being all-in on a single country. But you should do whatever you're the most confident in!
Cool video, from France
Discovered your channel recently and just cant thank you enough that you talk abt Europe investments and in English. Thank you so very much. Could you please make a video abt how you plan to sell your Acc. ETF once you reach your goal. I still do not understand how can i achieve financial independence/how to get monthly income with Accumulating ETF after reaching the savings goal. There are also taxes to consider with selling etc. Would really appreciate if you could pls explain this and share your own plans as an example. Would be greatly helpful. Thank you 🙏
My pleasure! 🙏
I talked about it here: th-cam.com/video/b_TXq9H8prQ/w-d-xo.html
Ciao Angelo, as usual many thanks for the great content, which remains a flagship for European investors. Could you please share the source of the information for the taxation in Belgium? Thanks!!
My pleasure! And thank you for saying that! 🙏
Curvo had some great information for Belgium: curvo.eu/article/invest-etf-belgium
@@AngeloColomboFi grazie 🙌
Thanks Angelo! Taxes aren't covered enough and are hugely important re: compounding, so it's great you're raising this point.
It's quite disappointing that many EU countries don't offer tax advantages like the US or UK on ETFs, though good to know that some do. Time to move to Greece I wonder? 😊
With the PAE in France, we can still invest in MSCI World, S&P500 or emerging markets with ETFs using synthetic (and not physical) replication strategy. For example, we have the well know Amundi MSCI World UCITS ETF EUR (C), and the newcoming iShares MSCI World Swap PEA UCITS ETF EUR (Acc), that can be completed for example with the Amundi PEA MSCI Emerging Mkt ESG Leaders UCITS ETF and the Amundi PEA Japan Topix UCITS ETF. The list of ETFs is limited, but enough to build a good ETF strategy with nice tax advantages.
You are almost right with Germany. There is capital gains tax of 25%+5,5% soli, it is about 26,375 for stocks and dividends BUT there ist 30% cut on etf taxes. This lower etf capital gains and etf dividend tax to about 18,5% and there is also 1000€/year tax free allowance for gains and dividends so it cover for example this yearly tax from etf capital gains for most of etf buyers and lower tax year after year for buy&hold etf investors. This yearly gain tax for etf is made specially for ppl getting etf to use this allowance and drop their capital gain taxes after many years of holding etf. There are quite few strategies to use all of tax cuts in Germany :)
Just in time for taxes, thank you Angelo! Pitty that taxation in Romania changed for the worst, it used to be better.
Great video!
Do you know if I have to pay capital gain taxes in Germany, if I bought ETFs in Germany under IBKR account and then moved to other country, e.g. Greece or Switzerland?
Angelo, this video is huge! Keep going with the good job and viva l'europa!
Germany at 7:05
Excellent video, congratulations on the research.
Here in the UK the dividends from accumulation or income ETFs is taxed exactly the same. Even if you don't receive the dividend in your account it's called a notional dividend. I'm surprised that this is not the same in all countries. This video may mislead people into thinking their accumulation ETF dividends are not taxable
Like yourself, I am in UK and was surprised to hear about how reinvested dividends can be treated as capital. I researched further and found what follows at website named etfstream:
Tax-wise, UK investors need to pay income tax annually on dividends, regardless of whether they are distributed or accumulated, but they can subtract these out later for capital gains tax.
As a result, the long-term tax result from both distributing and accumulating funds and ETFs is identical.
In some EUROPEAN countries, investors do not have to pay taxes on dividends that they do not receive in their bank account. In this instance, holding accumulating ETFs could give a useful tax advantage over distributing ones.
Selecting between accumulating and distributing ETFs boils down to personal financial goals and regional tax implications. Accumulating ETFs suit long-term growth seekers by reinvesting dividends while distributing ETFs provide regular income.
Given the tax differences across countries, investors should consider their income needs and tax situation to make a choice that aligns with their investment strategy.
For France, PEA decrease tax to 17,2% (instead of 30%) after 5 years, plus international stock are available by synthetic etf (msci world sp500 .etc...)
Life insurance is also a good tool to decrease from the 30%, it has more supports to choose from but it's primarily a tool to decrease succession tax (after the owner's death)
Thanks for the video, I live in Estonia so I can add you can postpone capital gain as long as you want if you don’t withdraw more money than you contributed by using an investment account or investing through a company which is fairly easy here 👍
That’s a good system to help compounding profits without any taxes as long as the money is not needed😉
That's great, thank you for sharing!
GOOD CONTENT!!! Very engaging right from the beginning These are tough times and frankly I appreciate how you discuss global finances in such a delicate way. Business and investment are the best way to make money even under the nose of the pandemic.
Investing in stocks in a much brighter idea, don't you think so?
One question: would it be worth it and possible to go to live in a country with low taxes just the year one want to sell his ETF? For example, living 20 years in your own country X, and the last year, moving to Greece for some time just to sell your parts? Thanks!
That would indeed be lovely, but your country might charge an exit tax on unrealized profits
@@AngeloColomboFi Grazie! :)
I was not expecting Portugal to be third in your channel's viewership, wow!
Most of them, like me, are probably non-native residents looking to retire here. There are ways to pay 0 tax in Portugal on ETF income.
@@Michael-schroder Would you mind telling us how?
What if I have built my portfolio on a heavy tax country and then moved to another to be favored from low taxes, if I want to sell my ETFs?
I have a question.
What happens when you move to another country?
Do you have to "cash out" and then reinvest in the other country? Or just tell your broker that you moved?
How does taxation work when moving to another country?
Thank you!
You’re doing wonderful, badly needed public service!
Hello Angelo, in Slovakia there is slight change, while holding ETF less than year you need to pay 19% of income tax + 13.4% of health insurance tax, so in total approx 34%, so its very very worth it to hold it for more than one year, you can introduce FIFO if needed when you need to withdraw some money.
Thanks for the info! Luckily 1 year is very manageable, I'm glad they didn't change that!
Such an informative video. Thank you for your work and time, Angelo!
Thanks, from Lithuania!
Great video Angelo! it will be interesting to cover the rest of the world as well (continent by continent to avoid a 6000 minutes video), starting from UK and maybe some tax heaven countries.
Hi Angelo, great video as usually, thanks :) I was wondering if you are planning to do a tutorial video for interactive brokers as it is bit tricky to navigate for basic users. All the best
Hi, Angelo thank you so much for your videos.I am living in Greece and I will start the 1 etf portfolio with vanguard ftse.I am little bit confused about the stock exchange I should buy.I will use IBKR and the ticker VWCE its for ibis2 Germany. I should buy this with euros or try to buy VWRD london with usd.Tahnk you again
My pleasure! Always buy it directly in euros if your home currency is the euro, there is no need to waste money on currency exchange fees.
@@AngeloColomboFi Thank you, so i will buy in Germany the VWCE wich of course is UCITS.
wonderful video
Incredibly well done video. Thank you very much.
Portugal changed the taxes for long term investments. I'm not sure when the new law starts but taxes will reduce to 19% to investments longer than 8 years.
As always well done and thank you!
Nice research.
Can we move tho another country in future? And pay 0% for exemple, greece? this is possible?
When you move from one EU country to another and hold a position in an ETF (Exchange-Traded Fund), you might be subject to what is known as an "exit tax." Exit taxes are designed to tax the unrealized capital gains of assets when a taxpayer moves their tax residency from one jurisdiction to another. The specifics of how exit taxes are applied can vary significantly between different EU member states, as tax laws are largely determined at the national level within the EU. Here are some general points to consider:
1. Definition and Purpose:
An exit tax aims to ensure that a country can tax the increase in value of certain assets (like shares in an ETF) that accrued while the taxpayer was a tax resident of that country, even if the taxpayer moves to another country before realizing those gains by selling the assets.
2. Triggering Events:
The tax is typically triggered by the change of tax residency. If you move from one EU country to another and change your tax residency, this could be considered a disposal of assets for tax purposes in the country you are leaving, potentially triggering the exit tax.
3. Calculation:
The tax is generally calculated based on the unrealized gains of the assets at the time of moving. This means the difference between the market value of the assets at the time of the move and their purchase price.
4. Payment and Reporting Requirements:
The specifics of how and when the exit tax is paid, and what reporting requirements must be met, can vary. Some countries offer payment deferrals, installment plans, or exemptions under certain conditions.
5. EU Regulations and Court Rulings:
The EU has principles regarding the freedom of movement for persons, capital, and services. Some exit tax regimes have been challenged in the EU courts for potentially infringing on these principles. Consequently, some countries have adjusted their exit tax laws to comply with EU law, which often includes providing deferral options for payment or proving exceptions under certain conditions.
6. Double Taxation Agreements (DTAs):
If the countries involved have a DTA, it might include provisions that affect how exit taxes are applied, potentially providing relief from double taxation.
7. Consultation with Tax Professionals:
Given the complexity and variations in tax laws, it's highly advisable to consult with tax professionals in both the country you are leaving and the one you are moving to. They can provide advice tailored to your specific situation, including how to comply with exit tax requirements and optimize your tax situation.
Correct
Holy grail of tax avoidance. Thank you very much Angelo 🤙
Great video but just to add something about france. With a PEA account and using synthetic replication ETFs you can invest in anything. I am personally investing in SP 500 ETFs in my PEA account.
A few others mentioned that as well, thank you for sharing your insights!
Very useful! Greetings from Austria.
Hello Angelo. Amazing video. I live in Belgium. Can you please tell me where you got the data for the TOB tax? How did you find out that the purchase/sale tax was higher for Vanguard than for iShares and SPDR? What would it be for Invesco FTSE All-World?
As you didn‘t cover Switzerland 🇨🇭 I will make up for you:
- no taxes on capital gains
- dividends need to be added to your income and needs to be taxed as it
- stamp taxes, everytime you buy or sell a share. National shares 0.075%. Int shares 0.15%. Notice: this tax is completely avoidable if you use a non Swiss broker like IBKR
- ETF withholding taxes: the most attractive for us is to buy US domiciled ETF (only buyable through IBKR not any Swiss or EU broker). Here we can get back all withholding taxes as there is a tax agreement between US and CH. With irish domiciled ETF we always loose 15% withholding taxes which has to be paid to US.
This is why most Swiss invest into US Vanguard World Stock ETF (VT) instead VWRL
Bom vídeo, informação relevante! 🇵🇹
Having the tax free TBSZ option in Hungary is one point in a very, very short list why it's good to live here.
Even better since Interactive Brokers made this option available at their site, the hungarian brokers are much more expensive compared to them.
Yes, I wish we had something similar in Austria. But if we did, I'm sure Austrian brokers or insurance companies would charge ridiculous fees for it as well. Guess you got lucky that The IBKR founder is Hungarian :)
Hey Angelo, thanks for the video. Great reminder to me who is just about to buy my very first ETF's using some similar strategy like you. Just try to guess which country i live in the EU? Yes, man Denmark. We are taxed on dividends and gains 27% up to 51.000 dkk which is around 6.800 euros per year. Anything above that is what you just have in your panel 42% tax. I pay an income tax of 40% montly, but the services here are somewhat decent, can't complain on that. Anyways, it is better to invest to have some than procrastinate and have none in the future i guess, keep it up your great work!
Thank you! I think you have some investment/retirement accounts if I'm not mistaken, with slightly lower taxes. But in Denmark I find this part even worse than the 42% tax on its own:
"While sale of ordinary shares is taxable based on a realisation principle, a so-called mark-to-market taxation is applied on certain investment funds, ETFs, etc., which implies that each year taxable gain/loss is to be declared even though a sale has not actually occurred. The gain/loss is determined based on the market value at the start of the year compared to the value end of the year (values for start and end of the year will be changed to value upon arrival/departure if moving to/out of Denmark during the year). Value is to be converted to Danish kroner using the exchange rate at start of the year/end of the year, so this will cover both gain due to increase in value of the investment fund, etc. and gain due to currency fluctuations."
taxsummaries.pwc.com/denmark/individual/income-determination
Hi Angelo! You forgot Luxembourg.
No capital gains tax on instruments held more than 6 months, and and no income tax on dividendes under EUR 15,000.00.
Thanks for your efforts! Here in Spain you have to pay tax on absolutely everything so the politicians and unemployed can live well.
ETFs should be tax free everywhere - investors assume risk and support the economy. If things go badly nobody helps you but if they go well you have to divide your profits with the state. This is after paying tax on the money you used to invest in the first place. Criminal.
My pleasure! I would also like that, but then the majority of the population, which doesn't invest in stocks/ETFs would likely complain that "the rich are getting richer" etc.
How can i calculate how much pre-tax in Austria for the iShares MSCI ACWI Acc? Is it astronomically high if i hold around 500k in it? I heard its not as bad as it sounds, but i just wanna avoid bad surprises
This was really great! Thanks for all the hard work 🎉
In Germany you only have to pay taxes on 70% of your gains if the ETF invests at least 51% into stocks. Which applies to all the standard ETF's people are using
I have a portfoli of four etfs the vanguard s&p 500, Vanguard FTSE develop, iShares NASDAQ 100 and iShares Automations and Robotics. Is that too much, should I just stick to one, and if yes which one?
In my opinion among the four the Vanguard FTSE Developed World would be enough, as it includes all the stocks from the other 3 ETFs + other developed countries.
awesome video and quality content, thank you Angelo for all your effort in creating transparency where little was there before 😊
So useful! Im an Investor in Vienna and am self-employed but now thinking....why don't I just move to Bratislava if it means id pay 0% taxes instead?
You forgot Andorra. 0% tax. VWCE Real annual growth rate: 5.86%, and 0.2% maintainance fee, since 2003.
Why?! Invesco S&P 500 UCITS ETF costs 0.05% and has real return of ~7%.
Very interesting video. Do you have any information on whether you pay capital gains taxes considering the country where you originally bought the ETFs or the country you are living when you are selling them? Does this vary a lot between countries? This can be useful when planning retirement.
There's more about Ireland (if investing in shares). If you are non-domiciled, as long as your profits stay outside of Ireland, you don't pay tax. Basically, Ireland punishes its own locals while it benefits those who are passing through.
As a European citizen you can retire in Greece. In this case can you transfer your share in ibkr to a broker in Greece?
I think it depends on the country you're leaving - some have "exit taxes", which may force you to tax unrealized profits in the country you're leaving when making the switch to Greece. The broker itself would not be the issue, you can keep your shares at IBKR as a Greek resident.
I believe there is no need to transfer to a different broker. If you have IBKR you will just have to update your residency if you become a Greek resident. In some scenarios when you move from a low tax to high tax country it might be needed to sell your portfolio before moving to the other country. This way you don't pay tax in the new country on capital gains you made before moving...
In Ireland I invest in stocks, even though I'd much rather invest in ETFs, but the tax code forces me to take the riskier opion 😢
I really hope this will change soon! 🤞
Hello Angelo! Do you know how a non-resident of Netherlands get taxed if he owns NL stocks? ( I know that is 15% on dividends but i can't find info about the capital gains). Also do they also file tax papers for Netherlands and fill those box1 box2 ect?
Yes in Ireland we only invest into our pension as anything else is just hell on earth to even understand or calculate the tax correctly.. Very sad