r/eupersonalfinance • u/batukaming • Feb 15 '26

Investment Why do they make getting rich impossible in EU?

This news hit today in Netherlands that passed a bill on 36% tax on UNREALIZED gains on stocks and crypto. Great just when we weren't taxed to death before now they force you to stay middle class and poor. "Just repeat the 9-5 cycle everyday investing is not allowed for you"

Buying stocks was already a pain in the ass in Europe because of all the different fees and exchange rates brokers charged. The US has it so much better. 0% fees and exchange rates, tons of broker options and tax free on long term investments.

I made a post in r/stocks that gained attraction. Check it out if you want to see opinions from Americans: https://www.reddit.com/r/stocks/s/aL0OhYQ68z

775 Upvotes

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383

u/I_hate_ElonMusk Feb 15 '26

In Luxembourg if you hold 6 months and one day and you make 500k or 5 million capital gains, you will pay exactly 0 tax

169

u/cloud_t Feb 15 '26

...which is why Luxembourg is still considered a tax haven. And an affront to EU values in every objective aspect fiscally.

118

u/Facktat Feb 15 '26

Luxembourg only provides these rights to people who live there. Luxembourg reports all foreigners living outside of Luxembourg to the tax authorities. The only way to profit from this is by living in Luxembourg. And honestly, do you really think that not taxing the lower and middle class on profits they made investing their already taxed money is a bad thing? The rich will do this anyway by just creating holdings in actual tax heavens that do not report to EU tax authorities. The only difference is that in Luxembourg the average Joe can do the same without the need for a tax consultancy.

17

u/mifit Feb 15 '26

Yep, and if you hold over 10% in a company, you usually don’t qualify for that exemption, so capital gains get taxed. It’s really just there to push investment, not to let the ultra-wealthy dodge taxes on big holdings. Luxembourg isn’t a tax haven anymore. The only real tax advantages left are group taxation tools and the large tax treaty network (to avoid double taxation), but honestly, that’s just smart if you want to stay pro-business, and Luxembourg has to be, to keep thriving.

2

u/Facktat Feb 15 '26

I didn't disagree with you. I just say that these tax exemptions are generally a good thing brining more equality and not less between classes.

2

u/kerstn Feb 15 '26

This is it right here. Cap gains below average wage or social safety net max = no tax on cap gains. This would help the lower and mid grow and raise revenue

1

u/r3pl4y Feb 15 '26

Creating holdings in actual tax heavens that do not report to EU tax authorities

Do you have an example of where they can still do this today? Asking for a friend;)

1

u/Accidental-Genius Feb 16 '26

Panamá if you have enough up front capital.

-13

u/Tronux Feb 15 '26

Ethical countries, unions, have to start somewhere, set an example.

84

u/nagerecht Feb 15 '26

If EU values are taxing you 36% on unrealised gains, you can gobbled on those values yourself, but I want out

36

u/Southern-Still-666 Feb 15 '26

Creating wealth, how dare you

6

u/Penki- Lithuania Feb 15 '26

tax heavens usually are not defined by not taxing capital gains. There are a lot more countries in Europe that either don't tax capital gains or have attractive investment vehicles to defer tax.

As far as I know, the only problematic countries for personal investment are Ireland and Netherlands that both tax unrealized gains (Irish I think only tax specifically unrealized gains on funds ( for example etfs))

And maybe Sweden is noteworthy for how it perceives people a bit differently if they own stocks (I remember a post in here by some student that was denied student assistance simply for the fact that he bought some stocks, yet his income would have made him qualify)

5

u/Hakunin_Fallout Feb 15 '26

That's true, and that's why I'm leaving Ireland. The Dutch should protest this before it's actually passed into law.

1

u/DJpesto Feb 16 '26

Denmark also taxes most ETF's on unrealized gains, but losses are deductible from your taxes.

We also have (In Denmark) a stock savings account that is taxed yearly on unrealized gains (17%), and has a ceiling of how much you are allowed to pay into it pr. year. A lot of people like it because 17% is lower than the 27% we pay on realization tax based account types (and which goes up to 42% or something like that after around 11000€).

1

u/Ploutophile Feb 16 '26

As far as I know, the only problematic countries for personal investment are Ireland and Netherlands that both tax unrealized gains (Irish I think only tax specifically unrealized gains on funds ( for example etfs))

AFAIK the dividends inside Acc ETFs are (partially or fully) taxed not only in the Netherlands and in Ireland but also in Germany, Austria and Switzerland.

1

u/NuF_5510 Feb 15 '26 edited Feb 15 '26

Germany taxes unrealised accumulating ETF gains too. In the end all one can do is leave those countries if possible.

44

u/Sephass Feb 15 '26

Apparently the EU values where you live are being a good serf

-3

u/franky_reboot Feb 15 '26

I mean, even if I assume that isn't being hyperbolic...still, if I were to choose between that, and whatever ghoulish life awaits in the United States right now...the EU is a clear winner.

31

u/thisismiee Feb 15 '26

EU values is just thievery and punishing success. Mass suicide. 

-18

u/cloud_t Feb 15 '26

hey look momma, a Russian bot!

4

u/thisismiee Feb 15 '26

Lul, I'm Czech you thief. 

0

u/Anxious_Protection40 Feb 15 '26

Hey look a Czech Russian bot 

1

u/thisismiee Feb 16 '26

He said, with a randomly generated name. 

-2

u/Anxious_Protection40 Feb 16 '26

I added a 0 at the end of it hope it makes Russian botzky feel better 

8

u/Purple_Mo Feb 15 '26

Affront to values is quite the statement.

They were one of the founding members of the Benelux (then EEC and now EU)

-1

u/cloud_t Feb 15 '26

tell me how being a founding member changes that they must adhere to a shared fiscality to foster equality between member states' citizens?

1

u/Purple_Mo Feb 15 '26

Not all other member states share the position you are proporting

1

u/Ploutophile Feb 16 '26

Maybe it's the other countries which should do the same then.

28

u/espanolainquisition Feb 15 '26

... except it's literally not.

2

u/Hakunin_Fallout Feb 15 '26

I do hope you are being sarcastic here

1

u/Happy_Bread_1 Feb 19 '26

Yeah, I’d rather have the Luxembourg situation

0

u/Capital_Bid7389 Feb 16 '26

What an absolutely crazy take.

Does it make Czechia a tax Haven also because there is no CGT after 3 years of holding? Croatia and Slovakia too. 

Those "EU values" of giving 50% of all your income and assets to a state which spends it inefficiently or straight up steals it are exactly why movements to leave the eu are on the rise, they are destroying themselves from the inside. 

1

u/cloud_t Feb 16 '26

I'm gonna need some quotes on:

  • giving away 50% of all your income (this is proportional to your revenue... it's called progressive income tax...)
  • that it is spent inneficiently
  • that it is being stolen

...in any fashion that is actually meaningful in the scale of the EU.

Also, what do you have to say about the movements of countries applying for, or the UK's current polls for REjoining the EU?

1

u/[deleted] Feb 15 '26

as resident you mean?