Foreign Bank A/C & Tax

Newera

Registered User
Messages
22
Hi folks,

I'm trying to protect my euro savings and am considering opening a canadian dollar bank account in another EU country. I have a number of questions and am looking for a bit of guidance please.

1. Does anyone know what tax is applicable on personal savings in an EU bank or Non EU bank where the currency is canadian dollars. I've read conflicting opinions on this forum in the past whereby the tax could be 25% or 40% and there was also discussion on whether the interest earned would be subject to PAYE and levys. Would anyone be able to clarify what the correct applicable taxes would be please.

2. Does anyone know what "witholding tax" is? Its a yes/no option on the form for the setting up of the new bank account?

3. If I had e.g. €10,000 and converted it into Canadian dollars in the offshore bank to get e.g. $13,800 CAD, would I have to pay tax on the interest regardless of whether when converted back to Euro / Punt Nua it was worth less than it was at the time of initial conversion? i.e. is there a writing off of tax on interest gained against the loss or would this only apply when the money is repatriated?

Thanks in advance for the help!
 
1. Does anyone know what tax is applicable on personal savings in an EU bank or Non EU bank where the currency is canadian dollars. I've read conflicting opinions on this forum in the past whereby the tax could be 25% or 40% and there was also discussion on whether the interest earned would be subject to PAYE and levys. Would anyone be able to clarify what the correct applicable taxes would be please.
Any use?

[broken link removed]
2. Does anyone know what "witholding tax" is? Its a yes/no option on the form for the setting up of the new bank account?
The aforementioned guide may help. Some foreign jurisdictions also charge local witholding taxes automatically or unless you vouch for why you should not be charged as a non-resident or whatever (via a W-8BEN in the US for example).
 
@Newera - Clubmans link is spot on.

- Marginal rate of tax + levies etc;
- irrecoverable currency fluctuations
- low interest rate

.. moving out of jurisdiction makes lots of sense ..er of a non-financial nature.
 
Back
Top