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Taxes on investing with a foreign broker: what to check as an EU resident
When you invest through a broker based in another country, who pays the tax and what do you have to declare? The questions to ask, what records to keep and where to check your own rules.
In short
- In most countries you are taxed according to where you live, not where the broker is based.
- A foreign broker may not withhold or declare tax for you: you may have to report income and, in some countries, the account itself.
- Rules vary by country and change. This page is general EU-level information: check your own national rules or ask a qualified adviser.
Six questions to settle before you start
| Question | Why it matters |
|---|---|
| Where am I tax resident? | It usually decides which country taxes your investment income and gains. |
| What kinds of income will I have? | Gains from selling, dividends and interest are often taxed at different rates and declared in different places. |
| Does the broker withhold tax for me? | If it does not, the declaration and the payment are up to you. Dividends may also be taxed at source in the country of the company. |
| Do I have to declare the account itself? | Some countries require residents to report accounts and assets held abroad, even when they produced no income, and some charge a yearly tax on them. |
| How are costs, losses and currencies treated? | Many systems let you deduct certain costs and offset losses against gains, and calculate in your home currency: the rules are specific. |
| What records will I need? | Without clear records, a declaration is slow and error-prone. |
What to do in practice
- Before investing, read your tax authority's guidance on foreign accounts and investments, or ask an accountant once, with your real situation.
- Keep records from day one: statements, trade confirmations, dividend and interest history, deposits and withdrawals, and exchange rates when you convert currency.
- Use the broker's tax report if it offers one, but treat it as a starting point and check it.
- Put the deadline in your calendar. Declarations and advance payments have fixed dates in most countries.
- Do not assume a foreign account is invisible. Financial institutions often report account information to tax authorities under international exchange agreements.
An example from one country: Italy
To show how specific the rules can be: Italian residents declare foreign-held financial assets in a dedicated section of the tax return and pay a yearly tax on their value, and gains are generally taxed at 26%, with a lower rate for some government securities. The details, the sources and what to do are in the Italian guide, tasse su un broker estero in Italia. Other countries have different rules: do not apply these to yours.
A concrete example: the eToro tax report
Data from eToro's official tax-report page, checked on 2 October 2026. They can change: verify on the site.
- What it is: an annual report of your eToro transactions, with income, profits and losses over the tax year.
- Who gets it: according to eToro, the service is for Club members, and it is free.
- Limits: eToro states it is informational, is not a tax declaration or a substitute for legal advice, and that you should check it with a tax adviser.
If you want to see the platform's conditions, you can open eToro through my affiliate link. I earn a commission if you open an account: read the disclosure.
Capital at risk. The value of investments can go down as well as up, and you may lose some or all of the money you put in. Copy trading and Smart Portfolios do not remove this risk and are not investment advice. Past performance is not a guide to future results.
What to read next
Before tax, check who you are dealing with: how to check if a broker is authorised. To see how costs and tax shrink a return over time, try the compound interest calculator, and for what you might invest in, read ETFs versus single stocks.
Frequently asked questions
Do I pay tax on a foreign broker if I never withdraw?
In many countries tax arises when a gain is realised, for example when a position is sold, or when you receive dividends or interest, not when money leaves the platform. This varies by country, so check your own rules.
Does it matter that the broker is in another country?
It matters for practical things, such as whether tax is withheld for you and whether you must report the account, but usually not for which country taxes you, which depends on your residence.
Can losses reduce my tax?
Many tax systems let you offset losses against gains within certain limits and time frames. The rules are specific to each country, so ask an adviser before relying on it.
Do I need an accountant?
Not always, but with a foreign broker, several types of income or foreign-asset reporting, a single consultation can avoid mistakes. This is a general consideration, not personal advice.
Does eToro give a tax report?
According to eToro's page, it offers an annual tax report to Club members at no charge. It is informational and not a substitute for your tax declaration or professional advice.