I have a plan to start investing in index funds (S&P 500) for a long-term benefits - approximately 10 - 15 years. I would initially invest a bigger amount, but than I would set a fixed monthly amount that I would keep investing every month, and as already mentioned, I would expect to get some profit in long- term run.

However, I'm still a student (studying abroad) and I have one more year till graduation. Therefore, I still have no idea at which country I'm gonna continue my career - which means I have no static residence. From my point of view, if E.G - I get an entry job in Germany, open my bank account, start investing and after two years move out of the country, I would have to withdraw my money and probably lose - since I would have get taxed and it probably wouldn't be best time for withdrawal.

Is this correct or is it possible to move out of the country where you started investing and still keep using the same bank for the same purpose, without any major consequences ?

I can't use my home country bank account, since investing options are terrible and very narrowed.


I wouldn't worry about "it probably wouldn't be best time for withdrawal" aspect too much. With a bit of planning and organization, you could cash out investments held in one country and have them reinvested in another one in a matter of days (if not less), minimising your "time out of the market". If the markets are cheap when you sell, the chances are you'll be able to buy in again at much the same price. There's a small chance you miss out on the markets lurching upwards, but you might just as easily miss out on a fall and come out ahead. Old saying: "time in the market is more important than market timing".

Tax it's hard to discuss without mentioning specific countries. e.g if you were resident in the UK you'd probably want to invest within an "ISA" tax-free wrapper; gains are tax free and there's no penalty for withdrawing when you leave. No idea what equivalents there are around Europe.

Interestingly there seems to be some recognition by the EU that this sort of thing is an issue for an increasingly mobile workforce; was recently some news of plans for a pan-European pension savings vehicle.

  • I guess I would have no worries if I had 'ISA', but most likely my first country to invest would be Denmark, and from my research, they tax so high when it comes to withdrawal. I also heard it's possible to keep investing at the country you started, even if you move out from the country, but only in case if the country you moved out and moved in have double taxing agreement. I guess at this point, it all depends on country you're in and their rules about investing. Thanks for the answer : ) – Seinfeld Oct 12 '17 at 13:55
  • Just googled Denmark's tax regime. Ouch. Sounds like there is some exemption from capital gains for some amount of listed shares held for 3 years though? Of course there's one thing worse than having your gains taxed... not having any gains to tax because you didn't invest. Also found this, which seems to imply they're aware they have a problem: reuters.com/article/denmark-taxation-stocks/… (but the pay-to-play wealth tax aspect sounds pretty distasteful). – timday Oct 12 '17 at 15:38

If you are a US citizen, you need to very carefully research the US tax implications of investing in foreign stocks before you do so. The US tax rules have been set up in general to make this very unattractive.

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