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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29799
Experience:  Taxes, Immigration, Labor Relations
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Hello, I am a greek citizen and I want to buy US shares. What

Resolved Question:

Hello, I am a greek citizen and I want to buy US shares.
What taxes are applicable for individuals and offshore companies (Seychelles) for sell profits and dividends?
Is there any double taxation treatyapplicable between US and Greece and if yes what are the conditions?
Thank you
Submitted: 6 years ago.
Category: Tax
Expert:  Lev replied 6 years ago.

LEV :


If you are neither US citizen nor US resident - you will be taxed only on income from US sources.
There are no taxes on transfer funds - you might be only taxes on income earned. How the source of income is treated - see IRS publication - http://apps.irs.gov/pub/irs-pdf/p519.pdf



You might be required or not to file your tax return based on your total income from US sources.



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.So - interest you will earn - is not your taxable income for US; Dividends distributed by US corporation is generally taxable, but if paid by foreign corporation - not taxable

LEV :

Please also be aware of US-Greece tax treaty - income from the sale of stocks is a capital gain - if you are a resident of Greece - it will be taxed at 30% rate- see IRS publication page 35 - http://www.irs.gov/pub/irs-pdf/p901.pdf - see the row for Greece.

LEV :

If that income is taxable in Greece and if you could claim a credit for paid US taxes - you need to contact a local tax accountant.

LEV :

Let me know if you need any clarification.

JACUSTOMER-uvju8zwn- :

Hello, sorry I dod not understand about dividends.

JACUSTOMER-uvju8zwn- :

Are dividends taxable for individuals (greek residents) and what is the tax rate?

LEV :

Dividends may be taxable in the US or not based on the company which pays these dividends. If dividends are paid by US corporation - they will be taxable for Greek residents (who is not an US citizen). If dividends are paid by a foreign corporation - these dividends are not taxable.

LEV :

For Greek residents dividends are taxable at 30% rate.

JACUSTOMER-uvju8zwn- :

So to summarise,

JACUSTOMER-uvju8zwn- :

So for US companies,we have dividend tax applied at 30% for individuals plus capital gains at the income tax rate. What happens with in case of an offshore company (Seychelles International Business Corporation)? Are the dividends taxable ? what percentage? What happens with the capital gains?

LEV :

Dividends paid by non US companies are not taxable in teh US for non resident aliens. So if Seychelles International Business Corporation is not US based company - dividends are not taxable.

LEV :

Please see for reference IRS publication 519 I mentioned above.

LEV :

The same is true in determination of taxability of the capital gain - if teh capital gain is resulted from the sale of US company shares - it is taxable; if foreign corporation - not taxable.

LEV :

Tax rate depends on your total income. If you held shares morethan a year - that will be long term capital gain - and tax rate will not be more than 15%

LEV :

Generally - you need to file your tax return as non-resident to determine your tax amount.

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