hTTi

I've inherited some stocks etc. from Canada, never had any investments before. The bank offered to let me have a managed investment account, which I guess is rare for non-residents. They will take withholding taxes, and I guess I'll get a credit for that in Germany. Does it make sense to keep them there, if I plan to move back in a few years? What should I watch out for, in terms of taxes etc.?

Someone said that if I have mutual funds or real estate REITs, it will be a nightmare, but I don't know more than that. Should I avoid them? There's still maybe the possibility that one of my relatives could take those, and I get something else, but they're not very enthusiastic about the idea if it's not really necessary. Thanks.

T-Bone wrote: ↑Sat May 25, 2024 2:37 pm I've inherited some stocks etc. from Canada, never had any investments before. The bank offered to let me have a managed investment account, which I guess is rare for non-residents. They will take withholding taxes, and I guess I'll get a credit for that in Germany.

You would only get a tax credit for the withheld Canadian tax if the Canadian bank does not withhold more tax than permitted by the double taxation agreement between Germany and Canada: https://www.bundesfinanzministerium.de/ ... onFile&v=1
For example, for dividends, they are only allowed to withhold 15%.

T-Bone wrote: ↑Sat May 25, 2024 2:37 pm Someone said that if I have mutual funds or real estate REITs, it will be a nightmare, but I don't know more than that. Should I avoid them?

Yes, unless you want to play German banking software, to do the calculations (Vorabpauschale, Teilfreistellung) that German banks do automatically for their clients.
See my post titled "OVERVIEW of changes in fund taxation in 2018" in this thread (differently from what I wrote in that thread, they did end up having to do tax credits for foreign source tax on fund dividends. They hadn't intended to, but they forgot to forbid it in the law, so the tax credit was continued even post-2017): https://web.archive.org/web/20210416113 ... 3%9Ferung/