So, do you pay taxes or do you secretly make money and hope nobody will find out? Here where I live, Germany, taxes are [B]really[/B] high, some of the highest in all of Europe. So I am looking for a way to get more money out of my money. I never took money from the state and while I think that taxes are important, as a poor student who trades for his life (haha), I just don’t want to give away 25% from my hard earned forex money. I am having some good trading results and am seriously thinking about moving to Greece or Malta, at least officially, where taxes are lower, but maybe there are some other methods.
I understand paying taxes on regular income, since I went to school for free and studying in Germany is really cheap compared to other countries, thanks to financial support by the government. So by paying taxes, I am giving something back. But as for forex, I had to teach myself. I am carrying the whole burden. If I fail, I will not get any support. I am left alone with my misery, but if I am succesful, the state suddenly wants 25%, 1/4 of my gains. That is just not fair.
So, do you pay taxes? How much do you pay? What are your thoughts on it? Do you have any tips for me?
Gains from forex are tax free in the UK. You can’t tax gains as a result of interest. Spot FX is still a contract for difference and involves controlling money for a period and speculating on the exchange rate during the time you have it once the rate has moved you relinquish control and keep the difference or pay the loss from your margin.
What’s there to tax? Don’t know about Germany…
Just pay your taxes.
Evading the “poor student” taxes might be easy but once you join the big league, try doing that and you will be following Uli Hoeness in jail sooner that later.
Thanks for the input defiance but this is worth looking up after all the tax man won’t refuse your cash. I live in the UK and I will endeavor to look this up but gains for Currency trading is tax free with the exception of stocks. I think also premium bonds are tax free as well, plus if this is the case then one should be able to offset any losses against meaning it will be messy for the tax man.
Not like I’ll pay taxes anyway seeing my broker is offshore… The market makers are trying to screw you, the broker is after your margin and charges you a spread and fees, the banks charge rate swaps and now the tax man…
Paying 28% here in Norway, I only invest in stocks tho. I can also get some tax back by adding my investment-expenses like business-newspaper subscriptions etc.
Every Person have to pay tax in time. Once you are through all your tax problems, there is no limit to the amount paid surveys can get you, so please pay your dues and earn along side!
Here in Australia, the taxes are ridiculous. I am already on 37% of my salary and anything additional to what I have will be taxed at 45%. Which is ridiculous. The government loves to give free money to lazy people, most of them always drunk and they tax the hard working knowledge workers. My way is, registering my account in a foreign country which I have residential rights and trade from Australia.
Hi, here in Ireland I opened an account with FXCM and by default they gave me an account that later turned out wasn’t a so-called “spread betting account”. They told me that I’d have to open a specific account with them called a spread betting account (which, again, doesn’t happen by default I have to request it) and I can only use the account in GBP denomination. So if you have this specific account and you live and reside in Ireland then, I was told, you didn’t have to pay taxes. It’s like having a gambling account with a sports-betting firm. So I was told.
Regarding the tax situation for in the UK I looked into it once I was making enough money to pay it. I wanted to be legit and not commit tax evasion but try to minimise my tax liabilities at the same time. If you are living well from Forex but not paying tax then people could become suspicious and may report you to the HMRC so it is better to be safe than sorry as tax evasion carries heavy penalties.
If you are spread betting which is only available in the UK then you pay no tax as it is classed as gambling provided you have another source of income that you pay tax on. If spread betting is you’re only source of revenue you are taxed (although I do not know what type of tax category this falls under). I plan to switch to this method in the future by either getting a temporary job which pays a minimal amount to qualify for income tax or setup a business and salary myself with a consultancy fee whilst barely working and spread betting for my income.
If you are doing normal Forex you pay Capital Gains Tax on any profits you earn as closing trades is classed as disposing of an asset, although you need to exceed the Annual Allowance before any tax is deducted. The rates are available on the HMRC website. This applies whether you have another source of income or trade on a full-time basis (like I do). If you work and pay income tax they are treated as two separate tax allowances but the tax bands earnings are combined. You do not need to register as self-employed but you need to complete a self assessment form to declare any gains for the previous financial year.
Additionally, you do not need to pay national insurance but it is advised to make voluntary class 3 contributions which are currently ÂŁ13.80 per week in order to keep up certain benefits such as the state pension. There is no time requirement for the national insurance contributions (so you could pay it in a lump sum when your trading is doing well as I am planning to do!) and how much you have contributed will affect your pension entitlement. Contact the National Insurance helpline regarding you own situation as everyone will be different.
When I was finding all of this out in March 2014 I spoke to three different HMRC tax advisors, a tax accountant, and a HMRC tax inspector to make sure the information I was being given was accurate as the last thing I want is a court summons for unpaid tax. They all gave me the same information so I should be ok but please do your own research.
Hai,
in Holland you pay only 4% above E 21,000 (with partner like marriage, E 42,000) on gains out of Forex trading, investing in bonds or your savings. Spread betting is considered gambling and is highly taxed.
Here where I live, Germany, taxes are [B]really[/B] high, some of the highest in all of Europe. So I am looking for a way to get more money out of my money. I never took money from the state and while I think that taxes are important, as a poor student who trades for his life (haha), I just don’t want to give away 25% from my hard earned forex money. I am having some good trading results and am seriously thinking about moving to Greece or Malta, at least officially, where taxes are lower, but maybe there are some other methods.