Say I spend a significant amount of money over ten or twenty years of residence in one nation in my scenario, Poland. After that, I relocate to another nation in Europe, where I stay for the next ten or more years. Where would the capital gains taxes need to be paid? the nation where I first purchased it? The nation in which I currently reside? Which nation is home to the brokerage?
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According to what I understand, even if you reside abroad, the US is the nation that requires you to file a tax return. Therefore, depending on the tax laws of the nation in which you live, you may be eligible for a US tax deduction for taxes paid in other nations.
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It is probably a split treatment. I moved from the US to the UK, and it’s a pro-rata split for each investment based on the time held. It can be complicated, but I find it pretty straightforward with a spreadsheet.
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Depending on the broker, I would pay it in the country where you sell because there are no rights to your earnings in another country and they cannot possibly know when you obtained them.
you are taxable at time of sale, thus your country then counts not the past
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The majority of nations will tax you on the securities as if you had just sold them if they are only in a brokerage account. When you leave Germany, I know this to be true at least, but I am happy to be corrected.
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If you mean that tax will be automatically deducted when you sell, that’s not the case in Poland you need to handle all of that yourself.
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No I didn’t mean that. I mean you owe it and will need to file it accordingly.
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In the case of my broker, I have heard they automatically notify the tax office about taxable events. However, I could consider using a different broker like IBRK, which might not do that.
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For any broker to operate in the EU they have to comply with CRS reporting, which IBKR will do too. Consult a tax professional.