In ANY European country you have that risk. Many EU countries do indeed judge based on volume, frequency, use of material, if you have other income, time spent on trading, etc. The only 100% waterproof answer is the answer from the tax authorities. You will have to ask a fiscal ruling, and they should agree in writing. All the other answers are just guesses. The other solution is not spent any money on professional advice and hope that later you will not get a taxation that is 100 times bigger than the consultancy fee you wanted to avoid paying. So what you should do: ask advice (PWC, E&Y, Deloitte...). That will cost you money ($1000 per consultation is cheap) ask a fiscal ruling (what will probably be the answer from PWC, E&Y, Deloitte...) if the advice suggests to do that pay somewhere around $5000 for the whole procedure you will have an answer that will be for 100% correct and the engagement from the tax authorities You can also just go to that country, start trading , and see what happens... I am 100% sure that this option will be much more expensive. In Italy that would cost you 26% taxation.