I’ve seen many recommendations in this forum for using Interactive Brokers.
So I tried to sign up, but during the signup process it asks for a tax residency.
I’m a digital nomad though and not a tax resident anywhere.
What am I supposed to enter there?
And does it have any negative consequences if I enter my old tax residency (Germany) just to get the account?
Or are there better ways to invest in stocks as a digital nomad?
@kevinsoell I don’t see an issue if you put in your Steuernummer. Interactive Broker would annually ask you to verify your account info (including whether your tax number is correct) and that would be a good opportunity to correct it (should you decide to get another tax number from another country). At least for my portfolio (which is mainly ETFs) I have not seen any impacts to my taxes. Your mileage may vary of course. Happy with Interactive Brokers, 2 years running. Was originally investing at DeGiro until they kicked me out (due to lack of EU identity).
@kevinsoell I am neither a lawyer nor an accountant - you can put that old tax ID in, and if they question it, please come up with a valid tax ID. They may not catch on until the next time you have to re-validate your account (which is once a year).
You’re a digital nomad, sure. You must pay SOME kind of taxes, yes? Did they issue you a tax ID? Use that. If you’re unhappy in the future, go into the IBKR settings and change it. I wouldn’t overthink this unless you have millions to transfer into your IBKR. (Do you?)
Then I don’t know how to help you. The rest of us mere mortals do pay taxes somewhere (albeit at lower rate) and have a tax ID. You can either use your old Steuernummer or make up a tax ID or apply for a tax ID in some lower-tax countries. Either way, the bill comes due, when it comes to investing.
Yeah, I doubt any mainline broker is going to accept the idea of a person who isn’t a tax resident somewhere anymore. It’s too non-mainstream and would probably give their compliance people a fit.
They will likely still ask about your personal residency and tax ID as the owner of the corporation.
I would just enter my German federal TIN. Unlike the tax number you get from your local tax office in Germany it’s valid for life.
As long as you have properly severed ties with Germany so you are not meeting their definition of tax resident, it shouldn’t really matter if they receives some reports of foreign investment accounts in your name.
If you were just pretending to no longer live in Germany that could pose an issue, however.
Note that IB typically looks as the IP address where you sign up from, the residence address you provide, as well as where you claim to be tax resident (with associated TIN)—if they don’t match be prepared for additional questions and more stringent requirements for proving your address. In other words you’d make your life easier by signing up from a German IP (ideally not a commercial VPN).
In case you didn’t order the LEI yet, I’d recommend using Bloomberg’s LEI service. At least a few years ago when I researched this it was the cheapest provider and you can set it to auto-renew. IIRC it costs $40/year (renewal) and $60 for a new code.