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How to not pay your taxes legally, apparently

(mrsteinberg.com)
113 points jimhi | 2 comments | 05 Jul 25 18:21 UTC | HN request time: 0.001s | source
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bgnn ◴[05 Jul 25 20:07 UTC] No.44475156[source]▶
For start-up founders: There are countries, like the Netherlands, where there is no capital gains tax. Move to such a country.
replies(5): >>44475202 #>>44475257 #>>44475323 #>>44475434 #>>44475465 #
sigmoid10 ◴[05 Jul 25 20:49 UTC] No.44475434[source]▶
They don't have an additional capital gains tax, but they still tax you on capital gains. In fact they even tax you specifically on capital gains from savings and investments, but using a fixed assumed percentage gain irrespective of whether your actual gains were lower or higher than that percentage. And they are also going to change that law by 2028 so that it works like any normal capital gains tax. So if you can 10x an investment in the next 2.5 years you might save a bit, but after that it hits you like everywhere else.
replies(1): >>44475674 #
1. mcv ◴[05 Jul 25 21:24 UTC] No.44475674[source]▶
It's effectively a 1.2% wealth tax that's based on a 30% tax on assumed capital gains of 4%. The thing is, the assumed gains are generally far lower than reality, and the tax is also much lower than regular income tax.
replies(1): >>44479851 #
2. sigmoid10 ◴[06 Jul 25 11:42 UTC] No.44479851[source]▶
The assumed yield varies by asset. For capital gains from investments it is >6% (roughly the expected return on the stock markets for the last century), for cash it is <1% (real returns used to be a bit higher but currently are extremely low, effectively overtaxing by a lot). But as already said above they are currently changing the law to use the actual yield instead, so the top level comment advice doesn't really matter anymore.