Dear Everyone, I am eager to reach Level 2 on Skool to access the upcoming videos by our esteemed @Jelena van Wieren . To help everyone, I’ve prepared a summary of today's Zoom meeting discussing UK and Dutch taxation matters. Contacts for Tax Advice - UK Tax Advice and Accounting: Rosita - [
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[email protected]) @Rosita MacGowan - NL Tax Advice: Wouter - [
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[email protected]) Investment Options in the UK for EU Citizens There are two main options: 1. As a Private Individual 2. Through a Limited Company (LTD) The LTD option is preferable due to its tax benefits. Investing Money in UK Properties via LTD You can transfer money to your LTD in two ways: 1. Shareholder Loan: - You borrow money as a shareholder loan. - You only pay NL taxes on the interest generated from the loan. - Tax rates vary across EU countries. In NL, it is a graduated tax based on yearly income, increasing from a certain amount. 2. Investment in Company Shares: - Your money becomes 100% company property, and you cannot withdraw it. - The company can use the money as needed. - To retrieve funds from the LTD, you must pay yourself a salary or dividends. Paying Yourself from a UK LTD as a Foreign Shareholder 1. Dividend: - Pay 25% corporate tax in the UK. - The remaining amount can be paid as a foreign shareholder dividend tax-free in UK. - You must pay income taxes in your tax residence country. 2. Salary: - You can pay a salary to a foreign shareholder with pre-25% corporate tax money (gross amount). - Remember to pay income taxes in your tax residence country. Rough calculations suggest that it is 4% more profitable to pay a foreigner from NL a salary than dividends. --- Disclaimer: This is not financial advice, just a summary from a short Zoom call. For further information, please contact Rosita and Wouter directly.