I'm currently living in the Netherlands where there is no capital gains tax, but I'm thinking of moving to a country that does have it. It made me wonder if there are simple ways to avoid paying such a tax by using options. Specifically, selling a call option with a strike price of 0 or close to 0. That way you receive (nearly) the full value of the shares plus a tiny bit of premium, essentially neutralizing your position but not liquidating it. Then you just roll over the call options every few years and postpone paying taxes until one day your children inherit the stocks. As far as I understand in most countries they don't have to pay capital gains when they sell. You even keep receiving the dividend for all those years whilst using the money for other investments.
Are there serious flaws in my reasoning or have I just bankrupted every government that charges capital gains tax with my genius? :-)
Submitted June 19, 2023 at 06:54AM by iamthedutchguy https://ift.tt/gE9cSGa
