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The two primary obstacles for ETF investors are capital gains tax, which is charged on profits made when selling ETFs, and distributions tax, which applies to dividends received from these funds. Understanding the tax landscape is crucial for any investor looking to optimize their returns.
Runner-Up Countries for ETF Investors
While some countries may not provide a complete escape from taxation, they offer significant reductions that can make them attractive for investors.
Belgium: A Notable Start
Belgium currently boasts no capital gains tax on stock ETFs, although distributions do incur tax. However, investing in accumulating ETFs—those that reinvest dividends—can allow for effective tax-free investing before a new 10% capital gains tax is implemented in 2026.