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How is forex trading taxed in your country?

  • #1
  • First Post: Edited 11:26am Jun 9, 2008 10:39am | Edited 11:26am
I'm reluctand to admit, but our little stupid country called Slovenia, will impose a 40% tax on all profits made from Forex trading.

This made me think I wan't to get OUT of this sick little country - and I'm not kidding. I wonder, if there are countries near to Slovenia, where Forex isn't taxed? What about Hungary? Or Austria? Maybe Croatia? Nevertheless, if necessary, I can move to States or wherever the taxes are MUCH lower or nonexistent. Please help!
  • #2
  • Jun 9, 2008 1:14pm Jun 9, 2008 1:14pm
Control everything. Own nothing
Not all sins are created equal
  • #3
  • Jun 9, 2008 2:17pm Jun 9, 2008 2:17pm
well Dubai is not so far from Slovenia.. time zone only a few hours difference. No income taxes.
  • #4
  • Edited 3:04pm Jun 9, 2008 2:28pm | Edited 3:04pm
Quoting hendrix
I'm reluctand to admit, but our little stupid country called Slovenia, will impose a 40% tax on all profits made from Forex trading.

This made me think I wan't to get OUT of this sick little country - and I'm not kidding. I wonder, if there are countries near to Slovenia, where Forex isn't taxed? What about Hungary? Or Austria? Maybe Croatia? Nevertheless, if necessary, I can move to States or wherever the taxes are MUCH lower or nonexistent. Please help!
my info may be dated but...

Hungary: no (not a low tax place for forex, at least don't think so - high taxes)
Austria: no, not a low tax place for forex (as far as I know)

Croatia: no taxes cause it's illegal (but better ask croats about this, I'm not 100% certain)

Belgium: some people (including Belgians sometimes claim it is no tax)... but really it is no capital gains tax if trading is not your main source of income, or something like that. From what I know.

NL: still not sure about this... it may be very tiny tax.. (taxed on a small % of your assets... effectively like 1.2% or something)... but I am not entirely sure. Even Dutch people argue over this one. Search futures forums for the debate. perhaps it was on elitetrader? And then maybe what they are talking about doesn't apply to forex?

lots of flat tax countries in eastern europe... some are not places I'd want to live (e.g. Bulgaria 10% - but mafia country), Romania (16% but lots of gypsies), Russia (13%), Slovakia (19%), a bunch of baltic states with > 20% "flat tax"... (so not much net savings to justify moving away)
  • #5
  • Jun 9, 2008 2:32pm Jun 9, 2008 2:32pm
Quoting hendrix
I'm reluctand to admit, but our little stupid country called Slovenia, will impose a 40% tax on all profits made from Forex trading.

This made me think I wan't to get OUT of this sick little country - and I'm not kidding. I wonder, if there are countries near to Slovenia, where Forex isn't taxed? What about Hungary? Or Austria? Maybe Croatia? Nevertheless, if necessary, I can move to States or wherever the taxes are MUCH lower or nonexistent. Please help!
You better make sure you plan on staying in this business before making such a large move. I know nothing about you as a trader, but I would expect to e trading for at least 3 to 4 years consistently before making a move like that. If you already wanted to leave the country, then I guess that just makes for another good aspect of it.
I dream, therefore I become.
  • #6
  • Jun 9, 2008 2:38pm Jun 9, 2008 2:38pm
Quoting mike w
You better make sure you plan on staying in this business before making such a large move. I know nothing about you as a trader, but I would expect to e trading for at least 3 to 4 years consistently before making a move like that. If you already wanted to leave the country, then I guess that just makes for another good aspect of it.
It may be fun for some Slovenians, if they want a taste of big city life. Since there are no big cities in Slovenia. So that could be a reason too + tax savings. I mean could be a lifestyle choice as well. It's interesting to live in other cultures. I know, I've done it a bit.
  • #7
  • Jun 9, 2008 2:43pm Jun 9, 2008 2:43pm
Quoting ycomp
well Dubai is not so far from Slovenia.. time zone only a few hours difference. No income taxes.
Ljubljana to Riyadh, Saudi Arabia = 3727km (that's 2316 miles)

Ljubljana to Vaduz, Liechtenstein = 400km (248.8 miles)

Ljubljana to Geneva, Switzerland = 645km (401 miles)

Ljubljana to Douglas, Isle of Man = 1621km (1007 miles)

Yeah, Saudi Arabia is close.

Hendrix, check out

Isle of Man

Belize

Costa Rica

Panama

Singapore

Hong Kong

As well as Switzerland and Liechtenstein which are a bit closer to home.

Do you want to set up a corp and trade from that to draw a salary? Do you want to continue trading as an individual? If you do it as a corp, would you consider the benefits of having control but not having ownership?

What I'm trying to say is that there are thousands of different ways you can do this. Each and every tax heaven has a different way to do things. It's a matter of doing the homework to find out what will make you happy.
Not all sins are created equal
  • #8
  • Jun 9, 2008 2:44pm Jun 9, 2008 2:44pm
Quoting ycomp
my info may be dated but...

Hungary: no (at least don't think so - high taxes)
Austria: no

Croatia: no taxes cause it's illegal (but better ask croats about this, I'm not 100% certain)

Belgium: no, but some people (including Belgians sometimes claim it is no tax)... but really it is no capital gains tax if trading is not your main source of income, or something like that. From what I know.

NL: still not sure about this... it may be very tiny tax.. (taxed on a small % of your assets... effectively like 1.2% or something)... but I am not entirely sure. Even Dutch people argue over this one. Search futures forums for the debate. perhaps it was on elitetrader? And then maybe what they are talking about doesn't apply to forex?

lots of flat tax countries in eastern europe... some are not places I'd want to live (e.g. Bulgaria 10% - but mafia country), Romania (16% but way too many gypsies... millions of them!), Russia (13%)
Hi, ycomp! Thanks for the info. Well, Hungary's border is about 3 km from where I live (I'm a bit of Hungarian myself and I like their country!) and Croatia's border is about 7 km from here. I could move to each of these two countries and still come "home" every day. As a matter of fact, my neighbor (who is a Slovenian) lives in Hungary, but works here in this town where I live. Austria is nice too - I always loved Austria's landscape, the people and their cities. Hmm... This has brighten up my day.
  • #9
  • Jun 9, 2008 2:45pm Jun 9, 2008 2:45pm
oh, how could I forget Serbia... that's probably the perfect solution... extremely close and 14% tax only but I'm not really sure what Slovenes relationships are with Serbs... can't be as bad as Croats with Serbs anyhow.
  • #10
  • Jun 9, 2008 2:47pm Jun 9, 2008 2:47pm
Quoting hendrix
Hi, ycomp! Thanks for the info. Well, Hungary's border is about 3 km from where I live (I'm a bit of Hungarian myself and I like their country!) and Croatia's border is about 7 km from here. I could move to each of these two countries and still come "home" every day. As a matter of fact, my neighbor (who is a Slovenian) lives in Hungary, but works here in this town where I live. Austria is nice too - I always loved Austria's landscape, the people and their cities. Hmm... This has brighten up my day.
well Austria is good for skiing... I heard Bratislava is like a bedroom community for people working in Vienna now.
  • #11
  • Jun 9, 2008 2:51pm Jun 9, 2008 2:51pm
Quoting mike w
You better make sure you plan on staying in this business before making such a large move. I know nothing about you as a trader, but I would expect to e trading for at least 3 to 4 years consistently before making a move like that. If you already wanted to leave the country, then I guess that just makes for another good aspect of it.
I did not want to leave the country but now I want to! I guess I could find another "full time" job as a computer technician, until I'm not able to live from the trading alone.

I agree on the 3 to 4 years of consistent trading - I'm in this business for less than a year (but I've studied, traded and invested in stocks for about 3 years prior to this, before realizing, that I should just invest my money in a good company and "forget" it) and I've been pretty consistent up to now (thanks to Jacko's teachings!!!).
  • #12
  • Jun 9, 2008 2:52pm Jun 9, 2008 2:52pm
what 40%,....it was tax free,..but now it will be 40%,...aha,...do u got some link,...wou....
its just money
  • #13
  • Jun 9, 2008 2:53pm Jun 9, 2008 2:53pm
Quoting Jay Walker
Ljubljana to Riyadh, Saudi Arabia = 3727km (that's 2316 miles)

Ljubljana to Vaduz, Liechtenstein = 400km (248.8 miles)

Ljubljana to Geneva, Switzerland = 645km (401 miles)

Ljubljana to Douglas, Isle of Man = 1621km (1007 miles)

Yeah, Saudi Arabia is close.
well as I said, Dubai's only a few hours difference (time zone wise). It's not half way around the world. It is a bit further south, but the main thing that gets me with travel is the change of time zone, not so much the actual distance. But still it ain't that far by plane. I'm sure vienna must have direct flights to dubai. For 0 tax, it is a pretty good choice. Also it is a tourist destination. Some obvious minuses which I won't mention here. But all in all, no tax

And the other "close" factor is time zone as it relates to trading. If your time zone is only a few hours difference then you can still trade your normal hours probably.
  • #14
  • Jun 9, 2008 2:53pm Jun 9, 2008 2:53pm
Quoting ycomp
It may be fun for some Slovenians, if they want a taste of big city life. Since there are no big cities in Slovenia. So that could be a reason too + tax savings. I mean could be a lifestyle choice as well. It's interesting to live in other cultures. I know, I've done it a bit.
LOL =) Hehe, that is soooo right.
  • #15
  • Jun 9, 2008 2:56pm Jun 9, 2008 2:56pm
Quoting Jay Walker
Ljubljana to Riyadh, Saudi Arabia = 3727km (that's 2316 miles)

Ljubljana to Vaduz, Liechtenstein = 400km (248.8 miles)

Ljubljana to Geneva, Switzerland = 645km (401 miles)

Ljubljana to Douglas, Isle of Man = 1621km (1007 miles)

Yeah, Saudi Arabia is close.

Hendrix, check out

Isle of Man

Belize

Costa Rica

Panama

Singapore

Hong Kong

As well as Switzerland and Liechtenstein which are a bit closer to home.

Do you want to set up a corp and trade from that to draw a salary? Do you want to continue trading as an individual? If you do it as a corp, would you consider the benefits of having control but not having ownership?

What I'm trying to say is that there are thousands of different ways you can do this. Each and every tax heaven has a different way to do things. It's a matter of doing the homework to find out what will make you happy.
I would trade as an individual... I guess. I've never considered to opening a firm for my trading.

Anyhow, I've just found out I can MOVE to Hungary without any kind of limitations!!! It can be done in a week if I want to!!! That's good news! Huraaaaaay!
  • #16
  • Jun 9, 2008 2:58pm Jun 9, 2008 2:58pm
Quoting ycomp
oh, how could I forget Serbia... that's probably the perfect solution... extremely close and 14% tax only but I'm not really sure what Slovenes relationships are with Serbs... can't be as bad as Croats with Serbs anyhow.
I guess our relationship with Serbs is fine, but I would rather live somewhere nearer to my home.
  • #17
  • Jun 9, 2008 3:02pm Jun 9, 2008 3:02pm
Quoting hendrix
I would trade as an individual... I guess. I've never considered to opening a firm for my trading.

Anyhow, I've just found out I can MOVE to Hungary without any kind of limitations!!! It can be done in a week if I want to!!! That's good news! Huraaaaaay!
I think you are misunderstanding what I wrote... I meant "no" as in no, it is not a no/low tax place for forex trading. AFAIK. Guess I shoulda been more specific.
  • #18
  • Jun 9, 2008 3:03pm Jun 9, 2008 3:03pm
Quoting de123
what 40%,....it was tax free,..but now it will be 40%,...aha,...do u got some link,...wou....
Yes. Click here.

I see you are a Slovenian too... I was totally shocked, when I found out about this. But I'm kind of relieved now that I know I can move to Hungary at any time.
  • #19
  • Jun 9, 2008 3:06pm Jun 9, 2008 3:06pm
yes, i saw that, that is absurd,...Če ne bi bilo izredne stopnje 40% in bi tudi za izvedene instrumente veljalo 20 odstotkov, bi lahko rekli, da je predlog povsem pričakovan, normalen in sprejemljiv. Takšen, kot je, pa daje vtis, da je znova aktualno urejanje "na horuk", ki smo se ga v zadnjih letih sicer že malo odvadili in ga tudi nismo pogrešali. Lahko torej govorimo o znova povišanem političnem tveganju za vlagatelje. Vendar - saj ste v volilnem letu možnost neviht že vračunali v svojo strategijo, kajneda? Kako naprej Doslej objavljeno gradivo si lahko ogledate tukaj [+]. Predlog zakona zdaj potuje v parlament, kjer naj bi ga obravnavali po nujnem postopku, tako da je realno pričakovati sprejetje še pred volitvami. Glede na ta urnik in siceršnje dogajanje v zadnjem času lahko torej zadevo razumemo tudi predvolilno. Račun se verjetno izide - oseb, ki aktivno trgujejo z izvedenimi instrumenti, je bržkone dosti manj kot tistih, ki se pridušajo nad grdimi špekulanti. Do sprejetja lahko tekst seveda še mutira. Odprta vrata pušča tudi navedba, da "lahko" ministrstvo za finance izda natančnejše predpise v zvezi z izvajanjem zakona. Zato to kratko predstavitev vzemite le kot izhodišče in opozorilo, da se klima spreminja.jst upam, da jim ne bo ratalo sprejet pred volitvami,..če ne bo pač treba it na 400:1 margina...lol
its just money
  • #20
  • Jun 9, 2008 3:09pm Jun 9, 2008 3:09pm
Quoting ycomp
I think you are misunderstanding what I wrote... I meant "no" as in no, it is not a no/low tax place for forex trading. AFAIK. Guess I shoulda been more specific.
I don't think I could afford to live in Dubai. I really don't think so.

Hmm... Well, I think I should try to be quite successful for the next 3 or so years (no matter what the taxes are) and then I could move to a low/no t taxed country.
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