Moving Abroad: Tax Implications for Daytraders (tax treaties)

Last Updated on June 19, 2022 by Quantified Trading

In may I wrote about tax implications for people moving abroad, both from Norway or anywhere else for that matter. They who have lived more than 10 years in Norway prior to leaving, must prepare to pay Norwegian wealth taxes 4 years after they move. Up until now one could take cover under a provision in the tax treaty, but quietly the Norwegian parliament is gradually excluding the article about capital. Put short, wealth taxes will no longer be included in the tax treaty, and that means Norway is in full right to tax net wealth (1.1%) according to their internal laws unless you have permanently moved (and that process takes 4 years).

Changing the tax treaties is a process that will take a while, but already they have changed Poland and Portugal. About 10 other treaties are under revision, among them Netherlands, Belgium, Latvia, USA and UK.I expect the rest to follow suit within a couple of years.

I have contacted the minstry of finance and they have confirmed it. I even contacted politicians in the Progress Party and they were furious about the changes. Obviously they don’t know what they are doing since it is legislated by the parliament!

I haven’t seen anything about this is in the press. So here you have it.

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  • It doesn’t even help to denounce your citizenship?

    As far as I know, the worst treaties are with so-called tax havens. If I have understood correctly, you can move to Singapore, pay a decent 20% tax on your income there BUT Norway claims the remainder that you would have paid to Norway if you lived in Norway.

    E.g. you make $100,000 in Singapore and pay 20k in tax. The tax would have been 45k in Norway, so you need to pay the difference, ie 25k, to Norway.

    But with the Finance Ministry own words: Tax treaties are needed to avoid unfair double non-taxation… 🙁

    Those from the African country Eritrea who live in Norway need to pay a 2% (two percent!!!) tax to their home country. According to Gahr Støre this is unfair, extortion, mafia, you name it. Talk about double standards!

    • Yes, citizenship doesn’t matter. If you as an American, for example, work in the oil business for 11 years and then decide to move back to Oklahoma to retire, you’re screwed the next 4 years.

      As for your example for Singapore, I think you’re wrong. That 45% includes social taxes. They are excluded. If taking up permanent residence abroad, you are automatically “expelled” from the welfare system. I have a written paper from the ministry that I’m not obliged to pay social security taxes. Bu from 2013 I have to pay wealth taxes 🙁