Hi. Starting from January 2023 in Romania a new law came into effect that offers great tax benefits to the clients of the brokers with local representation (for example the profit tax comes down from the regular 10% to 1% or 3% depending on how long you keep the stock). Are there any plans to open some kind of local representation? I know Romania might not be a huge market for Trading212, but there is only one real competitor on the market (missing a lot of the features Trading212 has) and one of the biggest advantages they have is the local representation (the other being the actual stock ownership). Now that taxes are also involved a local representation would be critical.
I have British-Romanian dual nationality and would be interested in owning some Romanian stocks.
Indeed, for the last 2 months, XTB is getting a great publicity in Romania for these smaller taxes to atract new clients… so i hope you guys from Trading 212 will understand this and act very fast… before lots of your romanian clients will move to XTB to benefit from the lower taxes…
I personally love your interface and the pie option comparing to XTB, but 7-9% smaller tax will be a huge difference…
Interesting, usually tax is paid depending on the client’s tax residency, eg regardless of where the broker branch is. For example, I’m in Croatia and I don’t pay capital gain tax if I hold shares for more than two years.
Curiosity: Do Croatian residents pay dividend tax? Is there a similar two year rule?
From my understanding this is due to the fact that companies registered in Romania are subject to the laws of Romania, which in turn forces them to get the tax at the source. So the government it sure on the amount of money it gets because it does not rely on us declaring the amount.
Yes. No. There is a 10% dividend tax (withholding).