Like Tree4Likes

Holding an account in BOCHK, and buying stocks, as a European resident

Closed Thread
Page 1 of 2 1 2 LastLast
  1. #1

    Join Date
    May 2021
    Location
    Beutiful Italy, where people don't know how to drive :)
    Posts
    176

    Holding an account in BOCHK, and buying stocks, as a European resident

    As a European resident I can't buy some CEFs with Saxo, and even if they allowed me to buy them, they lend me money to buy the CEFs, even though I have plenty of it (money). I am very unhappy with these two things.

    I don't remember BOCHK lending me money to buy CEFs, when I have money in the account. I still have a bank account with BOCHK, and they still have my HK address. So it shouldn't be a problem buying CEFs with my BOCHK account.

    Now I am thinking of buying CEFs with BOCHK, and then change my address to the European one, and fill in the WB-8 BEN form, so I pay taxes in Europe (15% taxation on US dividends, instead of 30% as a HK resident).

    I asked BOCHK and they said there is no problem to have a BOCHK account if you are a European resident, as long as you have a HK ID card (which I do). Has anybody tried to do this, and have you encountered any kind of problem?

    Thank you.


  2. #2

    Join Date
    May 2021
    Posts
    628

    Key question is how the broker/agent will handle 30% WHT for your HK resident account regardless of your other nationality, usually it is deducted at source so are you going to claim it yourself at the end of year or some other arrangement?


  3. #3

    Join Date
    May 2021
    Location
    Beutiful Italy, where people don't know how to drive :)
    Posts
    176
    Quote Originally Posted by ndt:
    Key question is how the broker/agent will handle 30% WHT for your HK resident account regardless of your other nationality, usually it is deducted at source so are you going to claim it yourself at the end of year or some other arrangement?
    The idea is that after I buy the CEFs I am interested in I change the residency to Europe, fill in the W8-BEN form, and I will be automatically deducted 15% WHT rather than 30% WHT (as a European resident I only need to pay 15% WHT). I will no longer be a HK resident, I will be a European resident.

    I asked a BOCHK person, and she said this would work, but I don't know if anybody tried and can confirm it works this way.

  4. #4

    Join Date
    Dec 2002
    Location
    薄扶林
    Posts
    42,816

    Buy a small amount and test the hypothesis.

    ndt and traineeinvestor like this.

  5. #5

    Join Date
    May 2021
    Location
    Beutiful Italy, where people don't know how to drive :)
    Posts
    176
    Quote Originally Posted by shri:
    Buy a small amount and test the hypothesis.
    Cannot. Once I change the residency to European I can't buy these CEFs any longer. That's the whole problem.

    I could buy all the CEFs I want, and then change residence, and see if I can reduce taxation to 15%. But if I can't I would sell everything, and I would likely lose a bunch of money. So I would rather figure out beforehand if I can.

  6. #6

    Join Date
    Dec 2002
    Location
    薄扶林
    Posts
    42,816
    I asked BOCHK and they said there is no problem to have a BOCHK account if you are a European resident, as long as you have a HK ID card (which I do). Has anybody tried to do this, and have you encountered any kind of problem?
    BOCHK is stopping you from buying?

  7. #7

    Join Date
    Dec 2019
    Posts
    2,099
    Quote Originally Posted by shri:
    BOCHK is stopping you from buying?
    CMBWLB or another smaller HK bank will likely be less picky than BOCHK. Good fixed deposit rates and cheap transfers to EU as well. Setup your payees before leaving for the smoothest setup.

  8. #8

    Join Date
    May 2021
    Location
    Beutiful Italy, where people don't know how to drive :)
    Posts
    176
    Quote Originally Posted by shri:
    BOCHK is stopping you from buying?
    Yes, as a resident of my particular European country I cannot buy some particular CEFs. See this thread:

    https://geoexpat.com/forum/155/thread363677.html


    But as a HK resident I can. BOCHK still thinks I am a HK resident.

  9. #9

    Join Date
    May 2021
    Posts
    628
    Quote Originally Posted by Philips:
    The idea is that after I buy the CEFs I am interested in I change the residency to Europe, fill in the W8-BEN form, and I will be automatically deducted 15% WHT rather than 30% WHT (as a European resident I only need to pay 15% WHT). I will no longer be a HK resident, I will be a European resident.

    I asked a BOCHK person, and she said this would work, but I don't know if anybody tried and can confirm it works this way.
    WHT handling as a whole is a mysterious box depdning on broker/bank/agent etc, the only sure shot way to test your channel is to try with small quantity and see if its clear..
    HSY likes this.

  10. #10

    Join Date
    May 2021
    Location
    Beutiful Italy, where people don't know how to drive :)
    Posts
    176

    OK, thank you.


Closed Thread
Page 1 of 2 1 2 LastLast