Many people have been thinking about moving to Europe permanently from the US recently according to some news and discussions. I'd figure that I can share some useful information on financial and tax side here for someone that lives in Netherlands.
EU is a mix of socialist/capitalist at it's core allowing mega corpos to exist but with high taxes for both citizens and businesses to fund the strong social welfare systems. Like the states, all EU countries are independant but have universal laws that everyone needs to uphold and achieve union. For example a minimum 5% VAT (sales tax) on all products/services and have common goals.
15 out of 27 EU countries have high taxes on stocks/capital gains and the remaining are poor Eastern European countries and tax havens to attract wealthy people and workers. The average rate at around 20% and goes up to 42% with very low income thresholds.
Recently many countries have pushed higher tax rates due to aging population and high unemployment rate. Now [Netherlands](https://bfmtimes.com/netherlands-to-rethink-36-tax-on-unrealized-gains/) approved a bill to make investing problematic with a 36% tax rate on unrealized gains. For example if your $50k invested stocks grow up to $100k this year, you will owe the government $18k in taxes even if you don't sell and liquidate your investments.
Americans thinking of moving to Europe? Here's some things you should know about stocks and taxes.
byu/batukaming ininvesting
Posted by batukaming
4 Comments
Poor Eastern European countries being tax havens. I loled. Most of Eastern Europe in the EU is not poor and is not a tax haven. Poland is set to overtake Spain in GDP PPP adjusted and has taxes capital gains.
Yup!!! So many people are going to leave. It’s very simple – you pack your bags and then you move to a new country and then – profit!!!
Why worry about immigration rules? Points for immigrants based on education, career, etc. No, I’m American, I’m pissed with Trump, imma just move to another country.
Maybe, the next time you hear someone say they are just “going to move” to another country, ask them – with what qualifications? What makes you special that you can just move?
Getting visas to retire or live in most of the EU is a bigger problem than the taxes.
Even you one becomes a resident, a US citizen still must file a US tax return and there are special gotchas if you own some foreign funds. Check out [**IRS Form 8621**](https://www.google.com/search?q=IRS+Form+8621&newwindow=1&sca_esv=507a868014978926&sxsrf=ANbL-n7372jN5bskTlfUt56MoXQsRWKyeg%3A1772483297146&source=hp&ei=4fKladPEBo2o5NoP74PFmQU&iflsig=AFdpzrgAAAAAaaYA8Sf6SxSfJvnhZd6XuxCaw5sDsDv3&ved=2ahUKEwjt0eHzhoKTAxW1L1kFHSeIGJ0QgK4QegQIARAB&uact=5&oq=irs+form+for+profit+on+foreign+mutual+funds&gs_lp=Egdnd3Mtd2l6IitpcnMgZm9ybSBmb3IgcHJvZml0IG9uIGZvcmVpZ24gbXV0dWFsIGZ1bmRzMgUQIRigATIFECEYoAEyBRAhGKABMgUQIRigATIFECEYoAEyBRAhGKsCMgUQIRirAjIFECEYnwUyBRAhGJ8FMgUQIRifBUichgFQAFj0hAFwAHgAkAEAmAGbAaAB5iiqAQQ0LjM5uAEDyAEA-AEBmAIroALeK8ICChAjGIAEGCcYigXCAhAQIxjwBRiABBgnGIoFGJ4GwgILEAAYgAQYkQIYigXCAgoQABiABBhDGIoFwgILEC4YgAQYsQMYgwHCAgsQABiABBixAxiDAcICEBAuGIAEGEMYxwEYigUYrwHCAgoQLhiABBhDGIoFwgIREC4YgAQYkQIY0QMYxwEYigXCAhAQLhiABBjRAxhDGMcBGIoFwgIWEC4YgAQYsQMY0QMYQxiDARjHARiKBcICCBAAGIAEGLEDwgIFEAAYgATCAgYQABgWGB7CAggQABgWGAoYHsICCxAAGIAEGIYDGIoFwgIFEAAY7wXCAggQABiABBiiBMICBxAhGKABGArCAgQQIRgKmAMAkgcEMC40M6AHgMECsgcEMC40M7gH3ivCBwswLjEzLjI1LjQuMcgHzwGACAA&sclient=gws-wiz&mstk=AUtExfBvhZiV47SPfcoZ4Ot0gZveQdhlWc0jrcMCw1bbBQgwf6gvvEQDJ3eNM-n4esxnr1mEiaD36iRWVLTt7IXr5qH9RgN4OC2hC8gheCrA_clBwXaGunamarXUwJk_twhkBqdx5b-AoSIsqD_YYj7UgcC_BseK7gzmJPX68JFt33dDpD2aW7FCdAiccXpuH5lFN-Inn0_kWsJtr7hnmS8BS7hEbF-ge3iTKn2IrXXCUp7SRMg5FgOU2q_3nXSQ5Xek3XHZ5R_3iK4qhZk1nAVemj9NMxKbby9gVS27UXBE5LxiJw&csui=3)**.**