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!
@@nicolaruggiero2492 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.
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.
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.
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
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 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? 😊
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 % .
5 месяцев назад
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!
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!
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!
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
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 :-)
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
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!
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.
Damn das ist der erste RU-vid 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 ^^
Great summary! 🎉 Hello from a happy investor in Belgium 🇧🇪
6 месяцев назад
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😉
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! 🙏
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
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 🙏
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
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 :)
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.
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. 🙏
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!
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.
6 месяцев назад
What a master piece. Best RU-vid channel for European investor in Europe! Video suggestion: Exit tax, that it which countries have an Exit Tax on capital gains in case you are no longer a resident. For example, someone in Austria is holding an accumulating ETF, before you sell any shares you move to Greece. Can you “bring” your shares to Greece and would Austria want you to realise capital gains before moving to Greece.
Thank you Italo, that means a lot! 🙏 Interesting idea, I'd be interested in researching that as well! Hopefully that information is freely available, without needing to consult tax accountants in each country.
There is an exit tax in Austria, basically it's treated as selling everything and you need to pay full taxes on gains. It's called Wegzugbesteuerung. Though you can apply for paying the tax later when you sell, which is called Nichtfestsetzung I believe. But that requires a lot of manual bookkeeping. This basically doesn't exist in Germany by the way, only when you directly own a GmbH or something, so for the normal private person it doesn't exist.
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
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!!
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
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.
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)
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 :)
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.
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?
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
It's simple, i open a video from Angelo, first thing to do is to click Like, cause his value given track record shows me that i will most likely get a lot of value from it as always. P.S. Past performance is no guarantee of future results. :)
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.
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%.
Great video, thanks! Just food for thought, any kind of prepayment tax on unrealized capital gains is just ridiculous, no matter how much it is. What's next, tax on imaginary future salary increase?
I agree. You pre-pay taxes on a yearly basis without having realized profits and there's still a chance you may have to sell at a loss at one point - in that case you're not getting those paid taxes back though, you only have the option to cancel out some other realized profits in that same calendar year (if you have any).
In Greece we have zero tax because nobody has stocks or etfs. I dont know anyone who has stock investments. Bur every other taxes are the highest in Europe. So the moment that people starting to invest I am sure that they impose the hieviest taxes they can think.
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.
Might be wrong (I hope) but I think that if you hold Stocks and ETFs in lux for less then 6 months is taxed kinda like the salary (around 45%) it's only bonds and interests on savings account that is taxed 20% - after a certain amount of gains (250€ /year). If I'm wrong could you link your source? Im interested into knowing more
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 :)
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
In Spain index funds are great for example for this: You can have your money in a fund of short term bonds, now with high interest rates. You will not pay money for the interest and you are able to transfer that money, for example to a MSCI World fund. This is only an example.
Месяц назад
Hello! I am in Spain too. May I ask which broker you use to invest? My plan to by MSCI work fund / index. I am originally not from Spain, so if I can do it with a local broker who will do the tax declaration for me automatically, (IRFP so difficult) that is awesome.
MyInvestor is my favorite. The web app is not very good, but it's the best for buying funds. Other option is OpenBank, high commissions (I have not use it) I can send you a referral code of MyInvestor if you want. Also other option if Indexa (roboadvisor) but high commissions that the other two.
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
It’s so sad that if you are responsible, save already taxed money and invest to supporting yourself and the familily then are punished by much more taxes…
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?
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.
Hi Angelo, in Germany you only pay taxes on 70% for both, dividends and capital gains on etfs that consist of at least 51% stocks. This means, the effective tax rate is then about 18.5% instead of 26.375%.
Good morning Angelo, I would appreciate if moving forward you could include Malta as a jurisdiction for ETF investing. I can ensure you have a lot of viewers here too, since to many I have referred your channel myself ;)
This was informative. Will there be a follow-up for other countries such as Denmark where there is a high capital gains %? I am looking to start investing in an ETF (buy & hold) but considering this high tax amount, I am unsure which one to pick.
I moved from a country with no taxes on capital gains from ETFs (Slovakia) to a country with probably the highest taxation (Norway 37,84%). I started investing into ETFs for my pension. If the laws don't change until then, I might move back to Slovakia to realize my gains when the time comes. 37,84% percentage points difference is pretty steep!
Just make sure there's no exit tax in Norway, forcing you to fully tax unrealized profits when leaving the country! Do you have any tax advantaged (pension) accounts in Norway?
@@AngeloColomboFi I've never heard of exit tax, but it seems that there is one. In addition I read that it's not so easy to move one's tax residence from Norway. 😳 I talked to the investment department of my bank about some advantageous products for investing for pension, but there are none! When I told them about 0% tax on capital gains from ETFs, they couldn't wrap their heads around it. 😁 Anyway, I still have about 30 years to go and there's no way of knowing what the laws will look like in the future. And given the current political developments in Slovakia, it's not unlikely, that there won't be money in the world to make me move back.
