Hello!
I have a brokerage account (EU – NL) with a few assets in stock-portfolios. I have a few questions regarding tax implications:
* I would like to keep my brokerage account in the EU and transfer dividends (in Euro) to a local Japanese account. Will this amount be taxed? Moreover, is there a limit to the amount I can transfer to JP at a time?
* I am having a bit of trouble understanding the terms – *permanent tax-residency* (Staying > 5 out of 10 years in JP?) and taxes incurred while being a *permanent resident.*
So, if I obtain a PR later down the line, am I taxed differently over assets held abroad?
* From what I understand, a tax return needs to filed in Japan if my annual dividends are over 200,000 yen. Is this correct?
* Can I re-invest/send a certain amount that I obtain in JP (as part of my salary from a company in JP) back into my account in the EU?
Moreover, is it worthwhile to transfer my options completely to JP? (If that’s possible at all).
On an unrelated note, to those that hold investments in JP, are there any good alternative investment options?
3 comments
This is a copy of your post for archive/search purposes.
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**Taxes on foreign dividends/interests (EU -> JP)?**
Hello!
I have a brokerage account (EU – NL) with a few assets in stock-portfolios. I have a few questions regarding tax implications:
* I would like to keep my brokerage account in the EU and transfer dividends (in Euro) to a local Japanese account. Will this amount be taxed? Moreover, is there a limit to the amount I can transfer to JP at a time?
* I am having a bit of trouble understanding the terms – *permanent tax-residency* (Staying > 5 out of 10 years in JP?) and taxes incurred while being a *permanent resident.*
So, if I obtain a PR later down the line, am I taxed differently over assets held abroad?
* From what I understand, a tax return needs to filed in Japan if my annual dividends are over 200,000 yen. Is this correct?
* Can I re-invest/send a certain amount that I obtain in JP (as part of my salary from a company in JP) back into my account in the EU?
Moreover, is it worthwhile to transfer my options completely to JP? (If that’s possible at all).
On an unrelated note, to those that hold investments in JP, are there any good alternative investment options?
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You may want to try r/JapanFinance, as this is pretty much their specialty.
>So, if I obtain a PR later down the line, am I taxed differently over assets held abroad?
Its important to remember that permanent residence for tax purposes is not the same as permanent residence for immigration purposes. You are automatically a permanent resident for tax purposes when you’ve spent 60 of the last 120 months in Japan, regardless of immigration status.
Depending on your immigration status you may also be an ‘unlimited tax payer’, which means you’d be subject to the dreaded exit tax if/when you leave (generally if you’re status is tied to employment and you’re not a permanent resident for tax purposes you’re a limited tax payer; if you’re here as a spouse you’re automatically an unlimited tax payer).
When you are a permanent resident (for tax purposes) you owe Japan taxes on global income. If you are not a permanent resident (for tax purposes) you’d only owe Japan taxes on domestically sourced income and (I believe) revenue streams than enter Japan (eg, if you transfer part of a dividend to a bank account in Japan then the entire amount is taxable).
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For the rest of your questions you’ll probably find r/JapanFinance is a more focused resource (check their wiki’s, they are really good).