Hi everyone, from my understanding, my country (Bulgaria) does not impose capital gain tax when selling UCITS ETFs on European exchanges (such as Germany’s Xerta and Borsa Italiana), however, in multiple places online I see that when selling in T212 you are not guaranteed to sell on one of those (even though that’s where you bought them from). Basically T212 (or IBRK underneath) automatically selects the most convenient place at the moment and it might end up one where tax is then due.
Now this is not a problem now, but it may be a big problem in the future as 10% tax might be a considerable amount of money that can be saved instead.
Please can you tell me if I am being wrong or if there is a way to select where to sell the positions. Or at least if there are plans to add that feature later on. I am really looking to keep T212 as my main broker as it’s awesome, but this can be a deal breaker.
After some research I understand what I was getting wrong.
I am referring to OTC (over the counter) trades.
OTC sale is taxable event, while selling on the European exchange wouldn’t be.
If I were to buy and then sell VWCE for example, when selling is there a possibility for the sale to go OTC? And if yes - is there or will there be a way to disable this?
Where the asset is listed and there the buy/sell order is executed are two different things. The first is administrative, and the second is related to order routing.
“Where the asset is listed and there the buy/sell order is executed are two different things. The first is administrative, and the second is related to order routing.”
Nobody is questioning that as it doesn’t matter. If it gets sold outside the exchange (which is clearly stated when you download the sale document from T212) you owe taxes
