Looking for Solutions to Reduce Taxation on Stock Investments (Europe based)

[Bourne]

Hi everyone,

I’m looking for advice on how to optimize my tax situation for stock investments. Being based in Europe, the taxation on dividend earnings is just incredible, to the point where it feels impossible to effectively reconfigure my portfolio annually when accounting for these taxes. It eats up all potential profits, making the process frustrating and counterproductive.

I assume one possible approach could involve opening an account with a broker that offers offshore accounts linked to a nominee structure or even an individual account registered with some level of anonymity or "fakes." However, I’ve noticed that many brokers these days have stringent verification processes, including selfie requests and other heavy checks.

Do you know of any brokers that allow access to a wide range of assets while maintaining privacy and anonymity? I’d appreciate any recommendations or insights from those who’ve managed to navigate similar challenges.

Thanks in advance for your help!

 

[daniels27]

You may want to let us know where the dividend paying companies are located. Moving all offshore may be a bad choice. For example Switzerland has a whopping 35% withholding tax on dividends. If you are resident, you will pay slightly less.

Also, which country are you based in? Many countries now have CFC rules to avoid tax benefits of such set ups.

But you could move to Monaco and only invest in funds and companies in countries without withholding taxes on dividends.

 

[Bourne]

You may want to let us know where the dividend paying companies are located. Moving all offshore may be a bad choice. For example Switzerland has a whopping 35% withholding tax on dividends.

It can be worldwide, primarily in EU, Asia and the US, as I focus on value investing. I can’t afford to wait indefinitely, as the financial health of companies evolves and new opportunities constantly arise. If I have to pay taxes each time I have positive return, it significantly reduces my compounding effects and destroy this strategy.

 

[daniels27]

Then move to Monaco.