Belgian Bank Accounts?

Belgian Bank Accounts?

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Discussion

MitchT

Original Poster:

16,158 posts

215 months

Friday 3rd December 2010
quotequote all
I've heard of people having Swiss bank accounts as a means of achieving 'tax-efficiency', but the OH is convinced that Belgian bank accounts offer the same benefits. Is she right?

5potTurbo

12,881 posts

174 months

Friday 3rd December 2010
quotequote all
I would say 'no'.

Belgian banks have secrecy Laws, as do those in Luxembourg and other EU countries, but banks in the EU have to abide by the EU Savings Directive. Tax is payable on interest earned, but paid to the authorities without showing who the tax money came from. That, of course, doesn't apply to Switzerland.

That said, don't overlook that a certain Swiss bank recently coughed up some serious $$ to the IRS in the U.S. for not providing details of U.S nationals that held accounts with them in order to as a matter of "tax avoidance" (evasion) rather than, as you put it, "efficiency".

anonymous-user

60 months

Tuesday 7th December 2010
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(short version) There can be more favourable CGT regimes in a number of european countries, therefore having an account in that country will be required to keep the funds out of the UK

anonymous-user

60 months

Tuesday 7th December 2010
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singapore

davemac250

4,499 posts

211 months

Friday 10th December 2010
quotequote all
5potTurbo said:
I would say 'no'.

Belgian banks have secrecy Laws, as do those in Luxembourg and other EU countries, but banks in the EU have to abide by the EU Savings Directive. Tax is payable on interest earned, but paid to the authorities without showing who the tax money came from. That, of course, doesn't apply to Switzerland.

That said, don't overlook that a certain Swiss bank recently coughed up some serious $$ to the IRS in the U.S. for not providing details of U.S nationals that held accounts with them in order to as a matter of "tax avoidance" (evasion) rather than, as you put it, "efficiency".
All change!

Luxembourg, Belgium and Austria have effectively given this up.

Signed information sharing deals this week.

There are no tax breaks to having a Belgian account other than opting for paying witholding tax as against to the European Savings Directive - however there is an existing framework in place to erode and finally cancel out this advantage.

Luxembourg has recently had to give up its 'X' accounts and as mentions the Swiss are going this way as well.

Singapore, as mentioned, and Mauritius are options.