Establishing a GmbH?
January 14, 2020 | 40,00 EUR | answered by Steuerberater Knut Christiansen
Hello,
I am an employee with a gross salary of 34500 € and I have three rented properties. I pay 630€ in interest for the loans on the properties and have 1470€ for repayment and cash flow. Now I would like to open a brokerage account (starting with approximately 10000€) and deposit 1000€ monthly, trade or buy dividend stocks and options.
My question is, does it make sense to start a GmbH (limited liability company) for the brokerage account?
For this strategy, I am attending a course that costs approximately 3500€ gross. Can this be tax deductible as further education?
Kind regards,
Stefan Breitbeil
Good day,
In my opinion, it doesn't make sense to establish a GmbH (limited liability company) for your investment portfolio. The costs of establishing and managing a GmbH amount to several thousand euros, which would need to be offset by potential tax savings as an individual investor. Whether this can be achieved with a monthly investment of 1,000 EUR is questionable. The chances of obtaining tax benefits increase as the capital and potential profits invested are higher.
However, tax savings only truly occur if you do not distribute the profits, but reinvest them within the GmbH. When profits are distributed from the GmbH to you as a shareholder, the GmbH must withhold 25% capital gains tax for you.
Overall, I would advise against establishing a GmbH under these circumstances.
Since you completed the course as a private individual, deducting actual advertising costs from capital income is not possible. This is regulated in § 20 para. 9 of the Income Tax Act. This is because the income is subject to a flat tax rate of 25% (withholding tax).
I hope this answers your question, but feel free to ask any further questions at no cost.
I would like to emphasize that this forum cannot replace detailed and personal tax advice, but is primarily intended to provide an initial tax assessment. The legal assessment of your issue may vary depending on the inclusion or omission of relevant information.
Best regards,
Knut Christiansen
Tax advisor
