Taxes can significantly impact your financial performance. Delaying taxes or strategically offsetting them with capital losses can greatly enhance your investment returns.
In the process of planning a relocation, it’s essential to understand that it takes time and flexibility. We recently moved back to France after a year-long experience in Dubai, and even though we had previously moved to France from Hong Kong a few years ago, we encountered several challenges. Our experience taught us that preparing for the move out is just as important as settling in the new place.
Although we strongly recommend a simple buy and hold strategy of several diversified ETFs in a portfolio, we all made the mistake of individually picking a few stocks. Some have been more successful than others. Likely, you might still hold a couple of loss-making stocks. Understanding when you should sell them is critical to maximize their net value, and reduce your taxes, although they are not worth much.
Spain’s tax system is based on a progressive income tax, with rates ranging from 19% to 47% for personal income tax. Value-added tax (VAT) is a major source of government revenue, with a standard rate of 21%. Other taxes include wealth tax, inheritance tax, and taxes on property and capital gains. The government also collects social security contributions from employees and employers. As early retirees with significant capital and low income, we will delve into tax residency, investment income and wealth tax.
You are considering Dubai in your FIRE plan because it has no tax. Indeed, Dubai is very attractive with nice hot weather and no personal income tax. However, you will experience hidden fees everywhere which do really add up. Stay vigilant.
From great food, to beautiful scenery, to a good healthcare system with affordable cost of living, France is a fantastic country for
Interactive Brokers is the best online broker, offering the cheapest transaction fees and access to a large spectrum of assets, accessible from