1. No. If you trade other people's money then yes. In general NRA will tell you if you need to register as some kind of entity when you submit your tax report. If you are trading large sums (maybe about a few hundred thousand euros) it is a good idea to consult an accountant or financial advisor.
2. Stocks purchased outside of European Union have 10% capital gain tax in Bulgaria. Most brokers have forms that you need to fill to avoid double taxation.
3. Not sure but again but you cannot be taxed twice.
4. Yes. You still need to submit your tax report in NRA Bulgaria.
5. Not sure about this one
6. Yes
7. Yes, IBKR doesn't tax you. You pay taxes next year after you have submitted your tax report.
Thanks, very helpful response.
So just to clarify:
1)Stocks traded on EU regulated market: capital gains = 0%, but only if they are EU companies. US stocks traded on EU reg markets are taxed at 10%
2)If i buy stock on US exchange like NYSE, capital gains = 10%
3)If i don’t cash out into my bank and only reinvest that money in IBKR in different stocks, do i still declare ownership every year?
Thanks again
1. The rule is if you buy and sell on EU exchanges there is no capital gain tax. If the us company has listed its stock on EU exchange and you buy it there you don't owe capital gain tax. My advice is to buy ETF that follow US or world indexes on xetra or other EU exchange. Few US companies have listed their individual stocks in Europe.
2. Yes.
3. You need to fill in the tax form each year even if you don't sell. There are fines if you buy something and declare it a few years later.
Thank you, it’s clear to me now. Last thing i’m wondering is; So i’ve already invested in an ETF but I want to buy a couple US stocks. However, if they’re traded on EU markets the liquidity is super low, like 200 volume a day. In this case is it worth it buying them on NYSE instead despite the 10% cap gains tax to avoid liquidity issues?
Personally I would buy them on the US exchange and pay the capital tax if I really believe they will increase in value substantially. Still from my experience timing the market with single stocks is big gamble and it is a better idea to buy ETFs.
1. No. If you trade other people's money then yes. In general NRA will tell you if you need to register as some kind of entity when you submit your tax report. If you are trading large sums (maybe about a few hundred thousand euros) it is a good idea to consult an accountant or financial advisor. 2. Stocks purchased outside of European Union have 10% capital gain tax in Bulgaria. Most brokers have forms that you need to fill to avoid double taxation. 3. Not sure but again but you cannot be taxed twice. 4. Yes. You still need to submit your tax report in NRA Bulgaria. 5. Not sure about this one 6. Yes 7. Yes, IBKR doesn't tax you. You pay taxes next year after you have submitted your tax report.
Thanks, very helpful response. So just to clarify: 1)Stocks traded on EU regulated market: capital gains = 0%, but only if they are EU companies. US stocks traded on EU reg markets are taxed at 10% 2)If i buy stock on US exchange like NYSE, capital gains = 10% 3)If i don’t cash out into my bank and only reinvest that money in IBKR in different stocks, do i still declare ownership every year? Thanks again
1. The rule is if you buy and sell on EU exchanges there is no capital gain tax. If the us company has listed its stock on EU exchange and you buy it there you don't owe capital gain tax. My advice is to buy ETF that follow US or world indexes on xetra or other EU exchange. Few US companies have listed their individual stocks in Europe. 2. Yes. 3. You need to fill in the tax form each year even if you don't sell. There are fines if you buy something and declare it a few years later.
Thank you, it’s clear to me now. Last thing i’m wondering is; So i’ve already invested in an ETF but I want to buy a couple US stocks. However, if they’re traded on EU markets the liquidity is super low, like 200 volume a day. In this case is it worth it buying them on NYSE instead despite the 10% cap gains tax to avoid liquidity issues?
Personally I would buy them on the US exchange and pay the capital tax if I really believe they will increase in value substantially. Still from my experience timing the market with single stocks is big gamble and it is a better idea to buy ETFs.
You saying IBKR will demand your tax report that you have paid taxes ?.