Best Country for Trading (Tax efficiency)
- Thread starter ET873
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I don’t think either that trading through a company would decrease your tax liabilities significantly. You’re most likely better off by trading as an Individual.
I think you are right, I guess the initial question about the best country to trade in, could expand to a few cases where you would choose between a limited company and an individual. That would include better places than Spain for sure.
I found this report from the CNMV, the Spanish authority that goes into more detail.
https://www.cnmv.es/DocPortal/Publicaciones/Guias/Guia_Fiscalidad_Acciones.pdf
The page that goes into detail:
Which goes to what LuisHK was pointing out. There are a few more levels to consider.
If the only factor is where you can save the most money, countries like Thailand, UAE or Argentina will be among the best options. For me however, factors like quality of life, ease of meeting people, language barrier, safety, quality of public institutions and the environment are very important. Especially ease of meeting people and environment. I rather save less for an active social life than to be in a place where its tough to meet people or where the environment/outdoor options are very limited. Spanish/Portuguese cities rank among the best cities in the world for expats according to Internations - the largest expat survey there is. Countries like the UAE, Thailand and Malaysia also perform very well, but I’m someone who likes to be outdoor, rather than being indoor most of the time - which you will be in most South East Asian/ Middle Eastern cities.
Consider this... it's not unusual for business taxes or individual taxes to change with a newly elected government.
Thus, a country that has a favorable tax rate for a trader today may change to unfavorable for the trader a few years later with a newly elected government.
Also, hopping around from one country to another country for tax reasons to the most favorable country is typically not advisable and can quickly generate an audit and more headaches / costs to have a tax account well schooled in up-to-date tax info for different countries.
wrbtrader
Germany has no Tax on cryptocurrencies for longterm-capital gains.
As Saylor likes to say...
Tax That!
As Saylor likes to say...
Tax That!
https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/crs-by-jurisdiction/
https://ibkr.info/article/2784
I hope that you do know that payments with bank cards or credit cards from other (mostly exotic) countries are checked in most European countries. Especially if these cards pop up frequently for payments. Armenian cards that are used frequently in any European country are red flags for the tax administration.
Are you sure that your money is safe in Armenia???
This is the answer from somebody who had a bankaccount in Armenia:
I closed it shortly after conflict broke out. Remember the place is a conflict zone with armed conflict with Azerbaijan. It is not a place to think your money is safe when bits of territory of each country keep swapping hands . You could find your Armenian account is now an Azerbaijan account the next time you log in (I exaggerate here...lol).
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Yeah the fact that an armed conflict broke out again within few years with Aserbaidschan is a major drawback.
Serbia remains an interesting option too. Easy to open a company through which trading is possible. 15% corporate tax only. Not part of CRS and no DTAs with many countries either, especially outside Europe.
Serbia remains an interesting option too. Easy to open a company through which trading is possible. 15% corporate tax only. Not part of CRS and no DTAs with many countries either, especially outside Europe.
If you are looking for tax efficiency (or tax deferral) then consider a "New Zealand Foreign Trust" - that is a New Zealand trust with a non-NZ resident settlor. The trust will only pay NZ tax on income earned in NZ, so if all income is earned in other countries (e.g. trading US stocks, etc) then there is no tax payable in NZ.
A lawyer can set up the trust for a few thousand dollars, there is a NZ$270 fee to the tax department to register the NZFT and there are annual disclosure requirements to be filed (i.e. any money paid in or taken out). You will need a NZ resident trustee (at worst a lawyer will to this for about NZ$5000 per year, or make a NZ friend and pay nothing or a lot less).
If you distribute money from the trust to yourself, that will be taxed in your country of tax residency - but you can accumulate and re-invest income/capital gains in the trust and defer tax forever (or a long time). Or live in a country with a territorial tax system who will not tax you on foreign earned income.
Also get local tax advice as your country of tax residency may seek to tax you locally on the trust's income as the settlor. Different countries have different rules over who they tax on trust income.
The advantage of the NZFT is that it is from an OECD, high tax country (although the trust will pay no tax), which is subject to less scrutiny and compliance than a "tax haven" corporate entity!
A lawyer can set up the trust for a few thousand dollars, there is a NZ$270 fee to the tax department to register the NZFT and there are annual disclosure requirements to be filed (i.e. any money paid in or taken out). You will need a NZ resident trustee (at worst a lawyer will to this for about NZ$5000 per year, or make a NZ friend and pay nothing or a lot less).
If you distribute money from the trust to yourself, that will be taxed in your country of tax residency - but you can accumulate and re-invest income/capital gains in the trust and defer tax forever (or a long time). Or live in a country with a territorial tax system who will not tax you on foreign earned income.
Also get local tax advice as your country of tax residency may seek to tax you locally on the trust's income as the settlor. Different countries have different rules over who they tax on trust income.
The advantage of the NZFT is that it is from an OECD, high tax country (although the trust will pay no tax), which is subject to less scrutiny and compliance than a "tax haven" corporate entity!