Good question. 401k does not make that much sense when the country has a proper government pension funds so it's certainly less popular than in the US or Canada. But we do have private pension funds. Especially with current gov pension situation (it doesn't really keep up with the inflation and housing crisis) it's getting more and more popular Most of the employers will automatically open it for you but you can manage where the money is invested. Sometimes they also do the matching. My employer did 50%. As self-employed you may decide to open it yourself if you want to. There are certain companies that focuses on entrepreneurs and employed. I haven't researched it properly yet. The biggest benefits of them is, like 401k, they are tax deductible. Otherwise investing would have make much more sense.
Wow this video is exactly what I needed, I’m moving from the US to the Netherlands in the months and this was something that it was on my mind the whole time, your video helped me a lot.
Thank you for the nice overview Dmitrii! Indeed, it would be nice to cover the topic of ETFs in more detail as this is the recommended approach nowadays for passive investors. By the way, which tool do you use to keep the track of your portfolio (assets allocation, performance)?
Thanks for the reply! I personally use www.getquin.com (free version is enough for me) I also have a bunch of spreadsheets but that's for tracking the whole net worth, spendings etc.
Nice! Glad to help! I definitely recommend youtube.com/@AngeloColomboFi channel, it's very good. He is in Austria but many EU investments and brokers are similar. The biggest difference are taxes.
Thank you for the good content. Can you elaborate on how you were able to make the transfer from your 🇺🇸 broker to Interactive Brokers and how you minimized transfer fees / conversion fees? 🙏
Thanks so much for sharing this info! I'm based in Amsterdam and have literally just started researching investing. I have just under the Dutch tax free allowance to invest (in GBP in Wise acc so can easily convert to EUR) however I may return to the UK someday (next year or 2). Do you therefore advise I go with Deniro over interactive brokers? And how much would you advise investing in the first year?
Great video thank you! It is really useful! I have a question. What is the benefit of moving your IB account from US to NL ? Can you still trade if you don't move the account ?
Interactive Brokers requires you to use their EU entity instead of American one. So you cannot continue using the US one. Plus, in the EU, you cannot buy non-UCITS ETFs (which are sold on the US IB), so you won't be able to trade ETFs. In addition, there are tax implications and using the US one is unfavorable for you.
Nice! Glad it helped! I'd recommend starting investing slow, nothing aggressive, also reading a few books on the topic. I cannot recommend any specific investments (it's forbidden by Dutch law) but I can certainly recommend some books. My favorite: - The Psychology of Money - The Simple Path to Wealth - Rich Dad, Poor Dad
Hey! I think XTB is okay-ish broker overall. But they always focused on CFDs which is extremely speculative instrument so for me it's a bit of a red flag. When there is better options available, I am not sure what're the reasons to pick them.
@dpashutskii to be honest, in terms of fees for ETFs in euros, I would say it's a very good broker. I do not invest in cfds, only looking for ETFs, and I found this a better option compared to Degiro for instance. I can be missing something ofc, and that's why I question you about this broker 😁
Great video Dmitrii! assuming investment in ETF for the long term in NL, if I understand correctly since the tax on dividend is lower than the tax on box 3, then as long as the total assests are under 57k it would be better to invest in accumulated ETF and not in distributed ?
In my opinion, accumulated ETFs are always better and with distributed it's still advisable to reinvest all the dividends. But yeah, that taxes are another reason to buy accumulated as well. And yes, as long as your assets (including cash on deposits) is lower than 57k, you don't pay anything on box 3.
Thanks for this video. I'm new to investing and spent hours learning from (american) investors about index funds and the best brokers only to find out it's completely different for Europeans 😭
Hey Dimitry, Currently I'm a computer science student in the netherlands, planning to do a masters in software engineering. I hold a dutch EU passport. What country (or countries) would you recommend me to move to if I want to become a small business owner? Like for example a SaaS business. Assuming I want lowest tax, best standard of living and cold climate (or at least not too hot). Thanks in advance.
That's two different things: starting a family and settling down, and starting a saas business. If you didn't mention a family, I'd recommend completely different options xD I actually think the Netherlands has a very nice startup climate. For the lower earnings there are almost 0 taxes here as well. When your SaaS will start earning a lot, you can figure out where to move the business or how to appropriately incorporate it. If your goal is not 100% startup, I'd recommend asking yourself where you and your family want to live and not where the taxes is lower.
Just a nitpick, but mic in the front is too distracting, especially when you started to read numbers. May be move it further to the side if you want to keep it in the frame
For me or in general? There is no guarantee results for any investments so the only way to guess based on historical performance. Historical returns for VWCE for example are 8.85% annual. I repeat, it does not guarantee those returns in the future. There is no payouts as well. It's stock ownership.
What other financial topics do you want me to cover?
Does Netherlands have something like 401k or other pension focused investment options?
Good question. 401k does not make that much sense when the country has a proper government pension funds so it's certainly less popular than in the US or Canada.
But we do have private pension funds. Especially with current gov pension situation (it doesn't really keep up with the inflation and housing crisis) it's getting more and more popular
Most of the employers will automatically open it for you but you can manage where the money is invested. Sometimes they also do the matching. My employer did 50%.
As self-employed you may decide to open it yourself if you want to. There are certain companies that focuses on entrepreneurs and employed. I haven't researched it properly yet.
The biggest benefits of them is, like 401k, they are tax deductible. Otherwise investing would have make much more sense.
What be great to explain the tax system in NL, all 3 boxes and how its calculated
Will do, thanks for the idea!
Please make a video in detail about investing in ETF’s here in the Netherlands.
Wow this video is exactly what I needed, I’m moving from the US to the Netherlands in the months and this was something that it was on my mind the whole time, your video helped me a lot.
Wow, that's awesome. Glad it helped!
Awesome bro.. i was so in need of such videos in the Netherlands
glad it helped!
Thank you for the nice overview Dmitrii!
Indeed, it would be nice to cover the topic of ETFs in more detail as this is the recommended approach nowadays for passive investors.
By the way, which tool do you use to keep the track of your portfolio (assets allocation, performance)?
Thanks for the reply!
I personally use www.getquin.com (free version is enough for me)
I also have a bunch of spreadsheets but that's for tracking the whole net worth, spendings etc.
Great video, thanks for sharing it, mate!
Thank you for watching!
Great Content, Dmitrii, keep up the good work !
Thanks, will do!
Thanks! I'm a bit late and just starting to invest, so real life examples are very useful and motivating.
Nice! Glad to help! I definitely recommend youtube.com/@AngeloColomboFi channel, it's very good.
He is in Austria but many EU investments and brokers are similar. The biggest difference are taxes.
This is really informative. Thanks so much!
Thank you for the good content. Can you elaborate on how you were able to make the transfer from your 🇺🇸 broker to Interactive Brokers and how you minimized transfer fees / conversion fees? 🙏
Amazing video, thysm, do you have another one where you talk about ETFs more in depth?
Yes, here: ua-cam.com/video/ddH9aQ0UZu4/v-deo.html
Thanks so much for sharing this info! I'm based in Amsterdam and have literally just started researching investing. I have just under the Dutch tax free allowance to invest (in GBP in Wise acc so can easily convert to EUR) however I may return to the UK someday (next year or 2). Do you therefore advise I go with Deniro over interactive brokers? And how much would you advise investing in the first year?
ETF for sure is really important. Especially for UCITS ETF. Thanks
As far as I know, non-UCITS ETF is not traded in the EU.
@@dpashutskii Do you know if the UCITS are also taxable as per Box 3?
All the investments and savings are taxable on Box 3 (except your company owned stocks).
Great video thank you! It is really useful! I have a question. What is the benefit of moving your IB account from US to NL ? Can you still trade if you don't move the account ?
Interactive Brokers requires you to use their EU entity instead of American one. So you cannot continue using the US one.
Plus, in the EU, you cannot buy non-UCITS ETFs (which are sold on the US IB), so you won't be able to trade ETFs. In addition, there are tax implications and using the US one is unfavorable for you.
This is exactly what I have been looking for. Thanks Dmtrii. What would you advise for a complete newbie?
Nice! Glad it helped!
I'd recommend starting investing slow, nothing aggressive, also reading a few books on the topic.
I cannot recommend any specific investments (it's forbidden by Dutch law) but I can certainly recommend some books.
My favorite:
- The Psychology of Money
- The Simple Path to Wealth
- Rich Dad, Poor Dad
Pls make a video on ETF
Already cooking! Will be uploaded in a few weeks :)
Hello! Thank you so much for your video, did you check the broker XTB? Any opinion?
Hey! I think XTB is okay-ish broker overall.
But they always focused on CFDs which is extremely speculative instrument so for me it's a bit of a red flag.
When there is better options available, I am not sure what're the reasons to pick them.
@dpashutskii to be honest, in terms of fees for ETFs in euros, I would say it's a very good broker. I do not invest in cfds, only looking for ETFs, and I found this a better option compared to Degiro for instance. I can be missing something ofc, and that's why I question you about this broker 😁
Great video Dmitrii! assuming investment in ETF for the long term in NL, if I understand correctly since the tax on dividend is lower than the tax on box 3, then as long as the total assests are under 57k it would be better to invest in accumulated ETF and not in distributed ?
In my opinion, accumulated ETFs are always better and with distributed it's still advisable to reinvest all the dividends.
But yeah, that taxes are another reason to buy accumulated as well.
And yes, as long as your assets (including cash on deposits) is lower than 57k, you don't pay anything on box 3.
Thanks for this video. I'm new to investing and spent hours learning from (american) investors about index funds and the best brokers only to find out it's completely different for Europeans 😭
Yeah, I've been there ;)
Hey Dimitry,
Currently I'm a computer science student in the netherlands, planning to do a masters in software engineering.
I hold a dutch EU passport.
What country (or countries) would you recommend me to move to if I want to become a small business owner?
Like for example a SaaS business.
Assuming I want lowest tax, best standard of living and cold climate (or at least not too hot).
Thanks in advance.
Assuming I want to settle down and start a family of course,
I will start a company at some point in my career.
That's two different things: starting a family and settling down, and starting a saas business. If you didn't mention a family, I'd recommend completely different options xD
I actually think the Netherlands has a very nice startup climate. For the lower earnings there are almost 0 taxes here as well. When your SaaS will start earning a lot, you can figure out where to move the business or how to appropriately incorporate it.
If your goal is not 100% startup, I'd recommend asking yourself where you and your family want to live and not where the taxes is lower.
Just a nitpick, but mic in the front is too distracting, especially when you started to read numbers. May be move it further to the side if you want to keep it in the frame
Yeah, totally! Thanks for the confirmation. When I was editing, I also thought of that. I won't set it this way next time.
How much income investments like that would generate? Is it yearly payouts?
For me or in general? There is no guarantee results for any investments so the only way to guess based on historical performance.
Historical returns for VWCE for example are 8.85% annual.
I repeat, it does not guarantee those returns in the future.
There is no payouts as well. It's stock ownership.
How can I invest here in Netherland?
Have you watched the video? What specific questions do you have?
How to start? Can I start with 2k Here in NL?
You can start with basically any amount. I'll probably make more approachable video for complete beginners in the investing.
@ what vid
Дима, почему ты не покупаешь также бонды на весь мир?