Investors living in The Netherlands

There is no transaction tax. The profit from ‘buy low sell high’ of a US stock is not taxed.

There is only a ‘vermogensrendementsheffing’, which means that you pay yearly a 1% -2% tax on your total capital. The precise % is dependent on how much capital you possess, and that is determined on the 1st of january each tax year.

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Here’s something useful that I’m pretty wasn’t there earlier: go to the HISTORY section of the t212 app/site, then tap the DIVIDENDS tab. Next, select the dividend of your choice. There will be a line that says WITHHOLDING TAX (%).

In the case of American shares, this will say “15”. That means that the money you were given only equals 85% and THAT is useful for your annual tax returns, because it lets you calculate how much tax you can claim back.

Do this for each of your dividends, add them up by country and whack em into your tax return.

Well, there are errors with “WITHHOLDING TAX (%)” in History section, some dividends lately appeared with 0%, although the withhold tax was made, T212 said it was a visual error only. I had it in 3 different companies traded in US, other people also had that “visual error” in other companies.

They are working on it.

That are 2 different features although with common data. The topic you quote is about the CSV History Export. The post I answered is about the History section.

Although I appreciate that T212 adds more information about the Dividends and the Tax Report, it’s a pain in the neck to fact check all the transactions and doing all the calculus to discover the Gross Dividend in our National Currency, because we don’t have Exchange Rate used and the Gross Dividend.

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Yeah, that’s a bit annoying. If you can’t count on it being correct, you end up having to double check everything anyway and then there’s no difference with not having the feature in the first place.

But it’s good that they’re working on it. It’ll get there in the end.

In a twist of fate, I am moving to The Netherlands for work next week and will be a tax resident of the country. @Team212 could you advise the best course of action for somebody who is moving country? Can I open a second account on the T212 app? Should I wipe my account and open it again from scratch?

Welcome mate! In addition, you can ask back 100% of all the Dutch withholding taxes you pay from now on so UK and NL 0% div tax and there is no capital gains tax. You might have to pay a wealth tax though.

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I’m not from the UK, I’m Irish.

Though I will look into similar tax laws. I have a feeling it is going be be a headache with investing, pensions,tax etc., but it will be more favourable in the long term.

The capital gains tax is what I am most interested in though. In my country it is 33%. The 0% rate is amazing. I can always send money to my Irish bank to avoid wealth tax.

UK dividends (except REITs) are withheld at 0% for us as well is what I was implying :blush:

Maybe because, we are still using an UK entity (T212 UK). After we are migrated to the Cyprus entity (T212 Cyprus), the 0% for UK dividends could change. :wink:

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I believe you have to state how many money you have on foreign accounts too. However the first € 50.000 is not taxed.

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A way to escape that, is probably buy some fiat-based stablecoins in a/several crypto exchanges. As the crypto exchanges accounts aren’t bank accounts. Or having EMIs accounts (e-wallets), as some countries also don’t demand the declaration of these type of accounts. :wink:

Crypto has also be filed with your taxes. Value per 31/12. The only way to avoid, is take it of your bank and save it in a sock and then after 1/1 deposit it again. No experience with it though.

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How your Tax Authorities will know your crypto war chest if they are in cold storage? It’s like hiding your cash under the mattress. :wink:

My tax authority only demands foreign banks accounts. EMIs, trading and crypto exchanges accounts are outside of their scope.

Yeah I’ve a feeling something like this might be the best approach all things considered. A little bit of creative accounting will do wonders here.

I have been thinking about crypto as well though and where is it taxed. I’m guessing it is whichever country you are a tax resident of? Though with it being transnational and decentralised, with no controlling entity or physical presence, couldn’t somebody just convert their crypto to fiat and deposit it into any bank they may have abroad where tax is more favourable? Then gain some protection from double taxation laws?

Most countries follow the rule of territoriality, you declare and pay taxes in the country you are fiscal resident (mainly, living for at least 6 months/year).

The notable exception is US, under the FATCA, all US persons (residents in US and non-residents US citizens) must declare and pay taxes in US. Under this law, some bank secrecy territories lost their secrecy, noteworthy, the famous Swiss bank secrecy went down.

Besides, US already taxes and demands tax declaration on crypto income.

There are forums about offshore banking and tax optimization, including for retail persons.

EDIT: I just remember, in Netherlands, you have also to declare the gambling platforms’ accounts?

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Yes, my plan is to domicile in NL for at least 6 months of the year for tax purposes.

I also remember when I was living and working in Asia that my American friends had to file tax returns yearly. I couldn’t believe it then and can’t believe it now. Their tax and working conditions are extremely poor for a western country!

I haven’t looked into it but I guess that gambling law also then applies to Spread Betting? Spread Better is capital gains tax free in Ireland and the UK as it is considered gambling for some reason. I’ve no idea why CFDs get taxed, but Spread Betting does not.

I’m not sure that is true, because while t212 was UK based, I paid 30% tax on dividends for US stocks.

@Darko they are discussing UK dividends, not US. whole different ballgame.