Question tax questions - degiro

[boom123psy]

Hello all,

Nice to have found this community.

Firstly, I will try to describe my situation: I am working in Belgium for some good years now as a freelancer and invoicing from a Cypriot company thus avoid paying taxes BE. I am not registered in BE, at all.
As a legal person I do not pay taxes nowhere as I am not registered or declared for more than 8 years. My last tax residency was in Greece.

Now, I have made a Degiro account, declaring an address in GR and gave the TIN that I used to have, maybe is still valid maybe not. I have already invested 50K there and planning to double that amount in the following months.

After reading more (which I should have done before investing) I discovered the CRS and all that good stuff. Can somebody explain me what risks have now put myself in as Degiro will give all that info to the Dutch authorities and so on....
Is there something I can do about all this?

Thank you in advance for your answers comments and suggestions.

 

[Martin Everson]

Can somebody explain me what risks have now put myself in as Degiro will give all that info to the Dutch authorities and so on....
Is there something I can do about all this?

Ok so your information will be shared with at least the Greek tax office as that is where you said you are tax resident. What the Greek taxman does with it is up to them. They may simply check and find you are not resident in Greece and discard the data and case closed. But it is more likely they could shift the burden of proof to you i.e request tax payment first and wait for you to appear and appeal it if you feel it is a mistake . Information could potentially be shared with other countries tax authorities if indica (i.e a different countries telephone number, mailing address etc) leads them to believe you may potentially be resident elsewhere other than where you claim to be tax resident.

The information Degiro shares is below:

----------
Due to the implementation of the CRS and FATCA in the Dutch legislation, DEGIRO is obliged to provide the Dutch tax authorities information on its clients and their accounts. The following information may be shared (of private individuals):

• Name and address;
• Tax residence country and tax identification number;
• Date of birth and place of birth;
• Username;
• Account balance at year end;
• Gross amount of interest, dividend and other income;
• Gross sale proceeds.

.....

As a result, DEGIRO is obliged to verify in which country a client is (potentially) tax resident. DEGIRO is obliged to share this information with the Dutch tax authorities. Subsequently, the Dutch tax authorities shares this information with the tax authorities in the country where the relevant client (potentially) is a tax resident.

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[boom123psy]

Ok so your information will be shared with at least the Greek tax office as that is where you said you are tax resident. What the Greek taxman does with it is up to them. They may simply check and find you are not resident in Greece and discard the data and case closed. But it is more likely they could shift the burden of proof to you i.e request tax payment first and wait for you to appear and appeal it if you feel it is a mistake . Information could potentially be shared with other countries tax authorities if indica (i.e a different countries telephone number, mailing address etc) leads them to believe you may potentially be resident elsewhere other than where you claim to be tax resident.

The information Degiro shares is below:

----------
Due to the implementation of the CRS and FATCA in the Dutch legislation, DEGIRO is obliged to provide the Dutch tax authorities information on its clients and their accounts. The following information may be shared (of private individuals):

• Name and address;
• Tax residence country and tax identification number;
• Date of birth and place of birth;
• Username;
• Account balance at year end;
• Gross amount of interest, dividend and other income;
• Gross sale proceeds.

.....

As a result, DEGIRO is obliged to verify in which country a client is (potentially) tax resident. DEGIRO is obliged to share this information with the Dutch tax authorities. Subsequently, the Dutch tax authorities shares this information with the tax authorities in the country where the relevant client (potentially) is a tax resident.

------------

Thank you for your answer. Yes, indeed it it more likely to do what you said and request a tax payment. Tax on share capital gains is 15% in Greece and 0% in Cyprus...I think I know what I should do

 

[boom123psy]

Hi again, I think I f**k up by changing my address to Degiro to show that I am living in Cyprus.

I have received an email saying that I need to fill the two from below, until 20 Feb

1. form to declare my residency - by providing an electricity bill, etc
2. form to declare my asset for last year: my incomes sources, my salary, ....

Are all this normal? Is my account flagged somehow?

Considering my situation, should I sell everything and exit Degiro before the 20 Feb, if its possible...
Something else to consider? Please let me know if I can receive help by joining the mentor group...

I am feeling a bit stresses out now...

 

[Martin Everson]

I have received an email saying that I need to fill the two from below, until 20 Feb

1. form to declare my residency - by providing an electricity bill, etc
2. form to declare my asset for last year: my incomes sources, my salary, ....

Are all this normal? Is my account flagged somehow?

Both are normal. They need to know how the money that came into your brokerage account was generated. 50k is a chunk of change for them not to know how the money was generated.

Considering my situation, should I sell everything and exit Degiro before the 20 Feb, if its possible...

If you are not making a loss or willing to accept a loss thats an option. There is no guarantee they will not still insist on the data they require for their records.

Something else to consider? Please let me know if I can receive help by joining the mentor group...

Ask @Admin kindly to move this thread to MG


P.S I wouldn't stress at all.

 

[boom123psy]

thank you Martin. I have send a pm to the admin to move the thread.

- I can provide real proof of address from a bank of CY - if they accept this.
- For assets declaration I can edit my personal TW 2020 statements (change a bit the amounts and the company names that made the deposit (BVI)) and send it to them.

Does it worth the risk taking into consideration that I would like to keep that investment for some years?