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desfo2000

New member
Apr 16, 2021
16
6
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Spain
#1
Good morning,

which is the best (legal) way for an European resident to sell an investment stocks portfolio minimizing capital gain and then setup an investment company to keep managing the stock portfolio?

Several issue here:
- is that possible to move the stocks bought in a personal account to a company without selling them? I don't think so.
- is it possible to move residency to a country with a low capital gain taxes and sell the portfolio there? I know that Spain has an "exit tax" for instance but only for portfolio worth more than 4m
- the idea to setup an investment company is to avoid the US estate tax on American stocks investment (not an issue for France, Italy and UK residents which have a treaty in place, but different scenario for Portugal or Spain)
- I understand that once the capital is put in a company the only way to use that it will be through dividend (with taxes to pay on it) or income (more taxes)
- Is creating a company for stock investment purposes worth it or better to keep it under personal name?

Thanks !
 
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#3
- is that possible to move the stocks bought in a personal account to a company without selling them? I don't think so.
Click to expand...

Yes Dear, If it is held with the same broker. Like personal and corporate both account with IB broker. You transfer the security between them. Even You can connect different accounts on the same dashboard.
- is it possible to move residency to a country with low capital gain taxes and sell the portfolio there? I know that Spain has an "exit tax" for instance but only for portfolio worth more than 4m
Click to expand...

It is Complicated, Depend on your country and the country where are you moving to. Hire some Tax lawyer. Do not Trust online info. They may be outdated.

- the idea to set up an investment company is to avoid the US estate tax on American stocks investment (not an issue for France, Italy, and UK residents which have a treaty in place, but the different scenario for Portugal or Spain)
Click to expand...

You can avoid estate tax by Trust formation.

- I understand that once the capital is put in a company the only way to use that it will be through dividend (with taxes to pay on it) or income (more taxes)
Click to expand...
Take a loan to Avoid tax. Dividend and Income are taxable. Loan money is not taxable.
- Is creating a company for stock investment purposes worth it or better to keep it under personal name?
Click to expand...

Depend from person to person. What are you trying to achieve?
It is my personal opinion that If you do not have any loan or any government-related issue and want to live retirement life on Your stock portfolio, There is no need to set up the company.

P.S. I am not a tax lawyer or Expert.

Thanks
 
#5
azb1 said:
Yes Dear, If it is held with the same broker. Like personal and corporate both account with IB broker. You transfer the security between them. Even You can connect different accounts on the same dashboard.


It is Complicated, Depend on your country and the country where are you moving to. Hire some Tax lawyer. Do not Trust online info. They may be outdated.



You can avoid estate tax by Trust formation.


Take a loan to Avoid tax. Dividend and Income are taxable. Loan money is not taxable.


Depend from person to person. What are you trying to achieve?
It is my personal opinion that If you do not have any loan or any government-related issue and want to live retirement life on Your stock portfolio, There is no need to set up the company.

P.S. I am not a tax lawyer or Expert.

Thanks
Click to expand...
But if you move stock from personal account to a company account you create a tax event right? It's a sale you made and you have to pay taxes in case of capital gain.

Taking a loan to avoid tax would be using shares of the company as guarantee right? The loan should be on your personal name, not a loan in the name of the companny, otherwise you should still to use dividend or income to get the money.

Thanks!
 
#6
If your primary goal is to Avoid Capital Gain tax. There is no need to set up a company and Do all circus.
Just take load against your portfolio. Easy peasy :cool::cool::cool:

As I understand You are a resident of Non-US country.
And Invested in US stock, For nonresidents, there will be no Capital gain Tax.
If you give more detail about your residency and which country stock you are invested in. I can help you more.

And Basically what are your primary goal?
First We try to find a solution for personal accounts If it does not solve your problem then we will look into the company/trust formation solution.


Hope this Helps
 
#7
azb1 said:
If your primary goal is to Avoid Capital Gain tax. There is no need to set up a company and Do all circus.
Just take load against your portfolio. Easy peasy :cool::cool::cool:

As I understand You are a resident of Non-US country.
And Invested in US stock, For nonresidents, there will be no Capital gain Tax.
If you give more detail about your residency and which country stock you are invested in. I can help you more.

And Basically what are your primary goal?
First We try to find a solution for personal accounts If it does not solve your problem then we will look into the company/trust formation solution.


Hope this Helps
Click to expand...
Thanks, Spain resident with US stocks portfolio. I already use loans against it using Interactive Brokers. The main issue here for me is really the US estate tax, not really the capital gain tax.
 
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