Foreign online brokers, shares and taxes: how do I proceed?
For example, you can choose from a larger selection of providers and take advantage of their favourable conditions. At mt4 Exness, for example, you save on order fees and can look forward to a very low spread. In addition, taxes on shares do not go directly to the tax office. This means that you have more money in hand during the year, which you can reinvest and thus achieve higher profits.
Overall, of course, you have more effort, as you have to declare the capital gains independently in your tax return. On the other hand, the broker helps you with a clear annual statement. Here you can easily read off the profits and losses from the shares and transfer them to the KAP annex. However, investment expenses and any order costs must be offset here.
After all, when you as an investor declare the tax directly, the personal tax characteristics, i.e. the individual tax rate, are always used. This also makes it easier to claim the saver's lump sum and the basic tax-free allowance. As far as the dividend is concerned, be sure to pay attention to the company's registered office and the regulations there. It may be that the distribution is taxed as a withholding tax even before payment, as in Switzerland.
- With the final withholding tax, the taxes are automatically withheld at a flat rate of 25 per cent.
- Those who declare their investment income individually are also assessed according to their individual tax rate
- You can also claim your saver's lump sum retrospectively via a tax return
- Losses, investment expenses and gains on shares can be offset more easily
How long do I have to hold shares to be tax-free?
For all shares purchased before 2009, no tax was due as long as you held the securities for more than twelve months. In 2009, however, the final withholding tax was introduced, under which a flat rate of 25 per cent of the profit is paid to the tax office directly upon sale. Since 2018, this regulation has also applied to funds and ETFs purchased in 2008.
When do I have to pay tax when trading?
When you sell shares at a profit and when you earn dividends, you generally have to pay taxes. In the case of capital gains, there is an exemption amount of 801 euros, which you claim in your tax return. Otherwise, the broker pays a flat rate of 25 per cent to the tax authorities. In the following year, however, you can also insist on your individual tax rate based on your annual income.
When is a cryptocurrency tax-free?
Trading in cryptocurrencies is a matter of private sales transactions, where up to 600 euros in profits are tax-free. If you sell the virtual money only after one year, no tax is due, unlike with shares.
My conclusion: Insist on your tax advantages with shares
Especially for beginners in share trading, tax advantages are often not used because the effort seems too great at first. However, filling in the KAP annex with the help of the annual statement from brokers like Exness is easy.
At the beginning, the income is often still relatively low and applying the actual personal tax rate to it brings many advantages. In addition, all profits from shares up to 801 euros are not taxed at all.
The income tax return is always an enormous advantage, not least when using online brokers. In retrospect, it is even possible to make use of favourable audits and non-assessment certificates, with which a more advantageous taxation is made.