CGT - Selling Portfolio

[zonqor]

Good morning all.

Fantastic website !
Thank you @Admin.
Let me introduce myself.
I`m EU passport holder, lived and worked in another EU country for the last 15 years where I was paying tax.
Over the years my trading portfolio( I`m rather investor than trader) has increased considerably ( 7 figures) .
After this I'll call it a day to go into the sunset so to speak.
Far east is my next destination as my wife is from there.
If I was to liquidate my portfolio tomorrow CGT would be € 400-500k .
Here is my situation in a nutshell:
EU passport.
Lived in a different EU country with the high tax, no connections at all with that country, no property or anything whatsoever.
Relocated few months ago to Malta as self-sufficient ( no TIN , waiting).
Portfolio held in Swiss bank. I did not change my details with them yet.
I also have non EU passport, no CRS country, where I can also move if necessary, but that would be my last option.
I can wait, so I can do everything properly.
Now a few questions.
I will change eventually my details with the Swiss bank but would they report to my previous country as well ?
Would transfer of my securities/shares to let's say new bank with the only new details make any difference ?
Let's say if I change address/TIN with bank A and 2 months later I move my portfolio to bank B where they only have my current details .
What info banks actually exchange when transferring portfolio ?
Does the TIN/address passed to the new bank include previous address and TIN?
Any other advice is more than welcome.

Cheers.

 

[CaptK]

Which address does your Bank have for you?
Which passport did you use to get the Bank account and are you using a broker or just the bank.

 

[Martin Everson]

I`m EU passport holder, lived and worked in another EU country for the last 15 years where I was paying tax.

What EU country please state as this is important to answering question?

I will change eventually my details with the Swiss bank but would they report to my previous country as well ?

They will report to the addresses that were/are on the account during that year. Or where they have CRS indicia i.e a foreign phone number they will report there also.

Would transfer of my securities/shares to let's say new bank with the only new details make any difference ?

No

Let's say if I change address/TIN with bank A and 2 months later I move my portfolio to bank B where they only have my current details .
What info banks actually exchange when transferring portfolio ?

Banks just exchange portfolio data with each other when doing a FOP transfer. Also they report to all countries (via local tax office) that had an address on that account.

Does the TIN/address passed to the new bank include previous address and TIN?

You generally should not do a transfer without name and address matching for both sender an receiver otherwise it is considered a third-party securities transfer and you will have other issues.


Basically unless you have a good reason to move assets then keep them where they are and live in Malta and move to Asia. More importantly you need to state which country address is on the Swiss account. Some countries are hyper aggressive about capital gains tax like Spain. If you been declaring the portfolio for years to taxman in an EU country and then de-register officially you may have a tax liability to pay the capital gains or even inform them of any liquidation at a later date so you can pay tax on the gains accrued for the time you were in that country.

You need to speak to tax adviser. However most people just leave and don't look back. I doubt taxman will chase you in asia but who knows in 2020.

 

[zonqor]

Thanks CaptK

It`s a bank and broker.
Irish address, EU passport.

 

[nomad999]

From my understanding, swiss banks will report CRS info on the country of residence you have registered with them. If you change your country of residence with them before the end of the year they will report to your new country of residence
They will require signed documents and a TIN but not necessarily a proof of residence (assuming good long term relations).

Thats for automatic exchange of information, i believe they will comply with most of all direct inquiry from the taxman of your current or previous country of residence.
Btw you can request access to crs information they give out and to whom if you ask them, although am not sure it is wise to do so as i would rather not triggers any suspicion from the bank, but i tend to be a bit too paranoid with banks so ...
Would love to hear others opinions or experience on this.

Imho i would rather separate my bank and my portfolio, not sure brokers such as IB or Schwab send out CRS information like the banks do.

 

[zonqor]

Thanks Martin,

UK passport, I guess I`m still in the EU.
Not long though.

 

[erni]

Do you live in Ireland or do you live in the UK?

 

[Martin Everson]

If he is a UK passport holder with a Irish address (old residency) he should have been maintaining Irish non-dom status in Ireland which a UK citizen can claim. In which case the assets held in Switzerland are off limits to Irish taxman for capital gains or taxation in general. He has moved to Malta which again make the assets off limit to Malta taxman as a Malta resident non-dom. Furthermore he can liquidate the assets and bring into Malta as Malta does not tax capital or capital gain remitted to Malta by a non-dom which the Swiss assets will be.

To me there is no tax liability anywhere unless he had no Irish non-dom status .

 

[zonqor]

Thank you Martin.
I usually sleep over things, it takes a few days.
I`d be in touch with @Admin so I can contribute.
Cheers.

 

[zonqor]

I

Do you live in Ireland or do you live in the UK?

I left UK long time ago.... 16 years ago

 

[CaptK]

The accounts in the Broker you will be fine.
The bank account is a different questions entirely. Supposing you used the Irish/UK address and are now in Malta you will be fine. If you have been living in the same country as the address the bank have for you then change the address today.

The bank will do your CRS by the end of January so beat them before they download the list.

 

[nomad999]

if you change your country of residence at a swiss bank say at the end of 2019, would they report CRS info to both your old and new country of residence or only to the new ? anyone know this ?

 

[CaptK]

From my little understanding and the conversation I had with a compliance guy at Barclays its done by 31 January.
There is nothing to say for them to request previous years but that is the cut of day. Different banks may do it earlier or later but I would suggest you change that ASAP.

 

[zonqor]

I found this message from my broker .
This was in December 2018.

Report........by 30 June 2019 at the latest, the following information about your account:

• Personal data: name, address, date of birth, tax residence(s), Tax Identification Number of each relevant person related to your account;
• Account data: balance as at 31 December of last year, gross amount of interest, dividends and other income, gross proceeds from the sale or redemption of assets.

 

[zonqor]

Cheers CaptK.

I`ll change my details as soon as feasible.

 

[Martin Everson]

if you change your country of residence at a swiss bank say at the end of 2019, would they report CRS info to both your old and new country of residence or only to the new ? anyone know this ?

Yes they would. You would have had two residency addresses and data will be reported to both as part of most CRS software reporting modules used by banks.

 

[nomad999]

Yes they would. You would have had two residency addresses and data will be reported to both as part of most CRS software reporting modules used by banks.

Thanks Martin, damn it i should have thought of that... looks like my attempt at avoiding interaction with the taxman will fail ahah ...