Margin loan interest

[gundahar]

Hey All,

since this is my first post a small introduction:

I'm in my very early 30s and a civil engineer from Germany. I work as expat in a dangerous location since a couple of years. The "life" is soul crushing and pretty depressing but pay is OK. I developed a big interest for Japan, study the language and would like to move there sometime. I don't expect to land a civil engineering job there but something totally unrelated with rather bad pay. That's why I invest to have a passive income from dividends on top. I plan to make the move in early 2022.

I run a bit of leverage in my portfolio at Interactive Brokers. Is margin loan interest deductible from the tax burden? In my home country Germany it isn't.

Greetings

[Tkydon]

Yes, In Japan you can take the expense of the Interest on the loan for the procurement of the stock as an expense.

However, so long as you do not bring those Dividends over to Japan, you will not be taxed on them in Japan for the first 5 years of your residency here.

If you do send them to Japan, they then become taxable.

After 5 years in Japan, your Global Income becomes taxable regardless of whether you bring that income to Japan or not.