Some things I forgot:
- I have another 250-750k THB or so at the end of the year for bonus depending on performance (that’s before tax)
- I have another 240k THB per year that goes into 50% bonds and 50% equity through a provident fund. Half of it I only keep if I stay with this company for 5+ years.
- Salary increases 5-10% very year.


Correct. 15% or 500k.


To be honest, I’m not sure how long I will stay. I like it here, but I also realize that I might have to move again for my career. While I love my current position and work situation, there’s some limitation in terms of career progression, even if I make it to the top here (which i could).


Correct me if I’m wrong: If we are talking about buy-and-hold, is it relevant? I understand the tax would only hit me in the moment I am selling with a capital gain. Since I will be retired at that point, the tax rate should be lower. Should I actually retire in Germany, the tax would hit me anyways, since I would be a German resident again and get taxed on my world wide income.


Would Internaxx even accept me with my 30k EUR? I understand Sophie in the other thread mentioned she was refused.


I didn’t mean Thai stocks. International companies. It’s really just a bit of gambling money.


I really don’t know how to do that. So far, I was a strong bleibst of passive funds and the theory that active funds do not outperform the passive ones.

Are you sure about that? I'm no expert on German taxation, but Googling provides numerous sources which suggests there's a 25% tax on both income and capital gains.  E.g. en.wikipedia.org/wiki/Taxation_in_Germany#Flat_rate_tax_on_private_income_from_capital_and_capital_gains_(%22Abgeltungsteuer%22) and www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-germanyguide-2017.pdf (section 6.2)

Im neither a lawyer nor a tax consultant. And while I’m normally pretty good at reading German laws, this one in particular isn’t easy to read. That being said, I did quite some research over the last days, including asking on other boards where German investors and tax professionals talk. While I can’t be 100% sure, I’m quite confident the situation is as follows (in fact, the Wikipedia article you posted distinguishes between normal tax residency and taxation of non-residents as well):

1. Normal tax residency (“unbeschränkte Steuerpflicht”)

This is the normal case for everyone residing in Germany. Your worldwide income is being taxed. In this case, German banks and brokers are required to withhold 25%+5.5% (plus, in some cases, Church tax) automatically when you make any income from capital and give it to the tax authorities (see your links above).

If you have investments offshore, those banks, as they don’t fall under German jurisdiction, obviously won’t withhold that taxes. You would still be obliged to pay those taxes when filing your income tax declaration though (the only advantage you have is that you don’t have to pay it immediately, the disadvantage being that you have to do more paperwork as foreign banks normally don’t provide the documents they would be required under German law which makes filing your tax declaration easier).

2. Limited (and extended limited) tax liability

Once you’re not a tax resident, you’re not getting taxed based on your worldwide income anymore. The question whether you’re a tax resident or not is normally being judged based on a few criteria. Simply unregistering your German residency definitely is not enough to qualify (though necessary).

Commonly (and in many EU countries) there’s the 183 days rule, I.e. you need to live abroad for at least 183 days per year. However, that is not necessarily enough. The tax authorities will assume that you’re still a resident if you keep significant ties with your home country, such as, for example, going back and forth too frequently, or having property that is not rented out (I.e. it is assumed that you’re still keeping a residence there).

Once you’re not a normal tax resident with your whole worldwide income anymore, the question is whether you’re under limited or extended limited tax liability.

2a. Limited tax liability (“beschränkte Steuerpflicht”)

Under limited tax liability, your worldwide income is not being taxed. Only certain income made in Germany would still be subject to taxation. However, it seems that capital gains from stocks or funds are not on the list.

2b. Extended limited tax liability (“erweiterte beschränkte Steuerpflicht”)

This applies if (simplified):
- you moved to a low-tax country (the law specifies how to determine that);
- during the 10 years prior to leaving you have been at least 5 years a normal tax resident;
- you’re still keeping strong economic interests in Germany (the law specifies how to determine that).

You’re under extended limited tax liability for 10 years. Extended limited tax liability extends limited tax liability insofar that all income made in Germany is being taxed (all income that would be taxed under normal tax residency as non-foreign income). However, it is only being taxed in years where that income is more than 16,500 EUR.

—

That being said, I understand that:

1. I would likely be under extended limited tax liability for some more years;
2. Having investestment of 30k EUR in Germany, plus maybe another 15k EUR per year transferred from Thailand, I will unlikely anytime soon make income from capital investments exceeding 16,500 EUR;
3. I, therefore, could keep my account in Germany and invest there. I might have to calculate the year in which I might reach the 16,500 EUR to be sure. Doing a quick back-of-the-envelope calculation I can’t see making 16,500 EUR return from my investments back home within the next 10 years.

Thanks for your responses. This is what I plan to do so far; glad to hear your opinion:

1. I will invest 500k per year in Thai LTFs to max out the tax benefit. I still need to decide on the funds though. I have accounts with Aberdeen, UOB and Kbank opened. Trying to get access to Fundsconnext via Kbank. Also received the documents from Bualuang for Fundsconnext.

2. I am also investing ca. 150k per year in Thai equities and bonds (50/50) through my employer‘s provident fund. Provident funds come with a tax benefit (like LTFs) and my employer is contributing the same amount that I invest. The amount per year increases as my salary is raised every year. The tax benefit is capped at 500k (max. 500k incl. RMF, Provident Fund and life insurances).

3. The remaining money I plan to move back to Germany and invest in ETFs. Likely, this will be an iShares MSCI World (or MSCI World Multifactor). I have also some funds left in Germany which are/will be invested in MSCI World and MSCI Emerging Markets ETFs.

In the beginning, even considering the funds in Germany, my portfolio will be a bit Thailand heavy. Ca. 40% of my funds will be invested in Thai companies. Over time, this ratio will get less, as my salary increases but the LTF benefit will be maxed out. I.e. more savings will be invested in more diversified products.

I initially invested 70% in MSCI World and 30% in Emerging markets. Considering the heavy investment in Thai companies (and considering Thailand as part of EM) I will initially invest all remaining funds in MSCI World until my Thailand position will be less heavy. Then I will rebalance into MSCI EM.

Taken this together, my portfolio in the beginning will look something like this:

Corporate bonds, Thailand: 5-7%
Equities: 93-95%
- MSCI World: 65-70% (ETF in Germany)
- Emerging Markets: Rest (LTF in Thailand and MSCI EM in Germany)



Does this make sense overall?
Are there any fixed deposit accounts I could use to save the money that I want to transfer back home at the end of the year?

To avoid confusion: I didn't say that I want to purchase a Bualuang fund through Fundconnext. I just want an account (with whatever bank) that allows me to use Fundconnext so I have access to all funds and don't an account with every bank. According to the list posted here in another thread recently, Bualuang is part of Fundconnext and they confirmed it when I went to their Rama IV branch recently.