Jul '24 • General discussion
Summary of Zoom Meeting on UK & Dutch Taxation Issues
Dear Everyone,
I am eager to reach Level 2 on Skool to access the upcoming videos by our esteemed . To help everyone, I’ve prepared a summary of today's Zoom meeting discussing UK and Dutch taxation matters.
Contacts for Tax Advice
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.
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Disclaimer: This is not financial advice, just a summary from a short Zoom call. For further information, please contact Rosita and Wouter directly.
Your likes and comments would be greatly appreciated as I continue my educational journey through the Skool community.
Best regards,
Alex
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Summary of Zoom Meeting on UK & Dutch Taxation Issues
skool.com/uk-property-investment-1157
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