What are the main differences between taxation between the United States and the EU?

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The main difference is that most countries have different capital gains. A short explanation of what a capital gain is: a simple example, a purchase of traded shares that are then sold for more than you paid is gain, it is known as a capital gain in the United States.

Many EU countries do not have taxes on these gains or have very low taxes on these particular gains. In the United States, there is a capital gains tax that is currently a maximum of 23.8 percent (2021) on a particular gain.

So the biggest difference we see as tax professionals is the taxation on these capital gains and generally, a person living and working in the EU  might owe the Internal Revenue Service taxes on a particular gain.

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