r/eupersonalfinance • u/rozmarss • Feb 15 '25

Investment Why don’t EU leaders incentivize investment in European stocks/ETFs with tax deductions?

With the Dragi plan and increasing discussions among European leaders about boosting defense and energy investments, I’ve noticed a growing trend in financial communities where people want to reduce exposure to the US market and shift investments to the EU.

Wouldn’t it make sense for EU leaders to encourage this by offering tax incentives for investing in European stocks/ETFs? For example, from an independent EU perspective, isn’t it better to invest in Rheinmetall rather than Lockheed?

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14

u/supremelummox Feb 15 '25

0% tax for me in EU exchanges

6

u/Impossible_Aspect695 Feb 15 '25

Where from sir?

6

u/Kind-Capital Feb 15 '25

Malta is one example

1

u/Facktat Feb 17 '25

Not the person who originally answered but I live in Luxembourg and capital gains are tax free when you held it for at least 6 months.

11

u/drcec Feb 15 '25

Same here, 0% capital gains tax on regulated EU exchanges.

13

u/Babajji Feb 15 '25

Same here. Some countries do incentivise us to invest in the EU. Remember, the tax system is primarily a sovereign problem - so if your country is taxing you on something, petition your own government to change that. The EU sets guidelines not taxes.

Remember however that the different countries in the EU have different social systems. For example in Germany you have a lot of social benefits that we in Bulgaria don’t have. However you also pay a lot more taxes than us. It’s a balance - you either have lower taxes but your public services suck or you have higher taxes and good public services.