I’m planning to invest in a company that is to be founded in Romania (an AG) which will then in turn start buying real estate and mimic a REIT (there’s no REIT legislation in Romania).
End of the year they plan to split the profit in this direction:
- ~50% dividends
- ~50% free shares as the company’s capital anyway increases (if it makes profit)
Does anyone (preferably from Romania) know how the tax treatment is in this case?
There’s a lot of confusing information on the internet, most of it from tax accounting companies / financial advisors.
a) dividends when arriving in Switzerland will be added to the income and taxed as per whatever marginal tax rate I have.
The convention between countries is vague and specifies “may also be taxed in the contracting state” → so if Romania at some point decides to tax them too…it will.
Not sure though on the tax declaration for a privately held company how they will know those are dividends and to trust the statement. What proof will be required.
b) free shares … no clue how these can be classified
For public shares = not my case (on the Stock Market) shares…if you get them at a discount then diff (real price - discount price) = income.
Here it’s privately held though and if shares are free…I doubt the whole value they have would count as income.
Can anyone pls share some thoughts?
Also, a PM with a good accountant recommendation would be more than appreciated (mine is now starting some courses and won’t have time anymore). Preferably not a company that does this and then changes the contact data for the Steueramt → then you get surprised when they forget to inform you about an invoice or communication, had that in the past already.