TAX SMART
INVESTMENT
local tax regulations to maximize your after-tax revenue.
The hardest thing in the world to understand is the income tax.
Your after-tax revenue is what matters
We always think about the ways to lower your taxes. Each country has its own income tax laws and is very crucial that for each client we use optimal investment approach to lower his after-tax return. These strategies may vary country by country. In some CEE countries we even use strategies where clients do not need to pay any tax at all by investing with us.
This information applies to tax residents of the Slovak Republic. The tax regime depends on each client's individual circumstances and may change in the future.
We use all available
tax reliefs
Time test
Most CEE countries incentivize individual investors if they hold their investment long term. I this respect, if you hold your index ETFs in your portfolio for a certain period, you may be waived your income tax on capital gains completely or may by significantly reduced.
Non-taxable minimum
We use this tax relief when clients do early withdrawals or their capital gains are below given thresholds. In this respect, if your net gains are low, they might be tax exempt.
Lower tax rates
Each country has its specific income tax rates for capital gains and dividends. We examine these rates and then buy for clients index funds, that either distribute dividends or their dividends are fully reinvested and thus no tax on dividends are paid by clients.
We make use of every single oportunity to lower your taxes
When creating portfolio
We invest long-term. ETFs are not so volatile as individual equities, thanks to copying the whole market. We invest into distributing or accumulating ETFs based on which type of ETF provides better tax incentive.
When making a withdrawal
We will warn you for possible tax consequences and will try to advise you, how to lower your tax, or skip paying tax completely, when you make a withdrawal.
When rebalancing
Regular portfolio rebalancing lowers the risk and increase the gains. When rebalancing, we take into account possible tax consequences.
How taxes influence your performance?
Compare € 10,000 investment over the past 10 years into popular equity mutual funds in Slovakia with the Finax 100% equity portfolio:
Equity mutual fund
Average yield: 2,51% per annum
Finax
Average yield: 6,96% p.a. (per annum)
