No, I don't need any of them. I already pay for a global private health insurance with Axa, I pay for my education, and I've been supporting myself since 12 and will continue to do so.
Best Country for Trading (Tax efficiency)
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No, I don't need any of them. I already pay for a global private health insurance with Axa, I pay for my education, and I've been supporting myself since 12 and will continue to do so.
@dw31583 do know via via some people to talk to about this to who specialise in wealth management, corporate structures, property, they know everything about your situation and have experience with Malta, Middle East, Americas, Asia. There are basically two approaches, you pay your dues in your residency country -or- you base yourself somewhere and live a very transitional life which does not mean what most think it does.
Everything in between is grey and as you can see from Apple today, the governments are getting desperate with retroactive judgements, always the start of the end but they don't care. Can tell you almost everything advised will be theory from wikipedia and textbooks, there are very few who have actually done it in practice -without- cutting corners or taking -massive- risks often where the end party has no clue what is going on.
Can answer your specific question on #672 as was passed this information via via, your place of business will in most cases be the non-MT country. There is -no- 100% anyone can give you, if they do they are lying, even the accountants have no clue how the tax codes work and they make sure when it goes wrong they get their fees and run for cover.
What you need is the highest percentage option and a mitigation option if that goes wrong, because the powers can still 'interpret' whatever they want out of something when it's 100% best practice, navigating that requires experience. You only have to look at the avoidance drama unfolding, if the governments don't like it plug the holes in the code, but they won't do that because that complexity allows 'interpretation' to increase take. So the rational choice, go to somewhere that respects your money and the effort you put in to make it. Ultimately it is choosing a jurisdiction that supports your business and personal interests for growth, it's not about lowering rates although that may be a side effect of those choices.
Note: whoever said about forfait in CH has absolutely no clue what they are talking about, you basically have to be a 'retired' multi-millionaire to apply for it and the top cantons you need to be an F1 driver or tennis pro. If you can prove you are retired which someone did at 30, then it can work, but for the other 99.99% being in a situation to integrate with this type of structure is a fictitious fantasy.
Everything in between is grey and as you can see from Apple today, the governments are getting desperate with retroactive judgements, always the start of the end but they don't care. Can tell you almost everything advised will be theory from wikipedia and textbooks, there are very few who have actually done it in practice -without- cutting corners or taking -massive- risks often where the end party has no clue what is going on.
Can answer your specific question on #672 as was passed this information via via, your place of business will in most cases be the non-MT country. There is -no- 100% anyone can give you, if they do they are lying, even the accountants have no clue how the tax codes work and they make sure when it goes wrong they get their fees and run for cover.
What you need is the highest percentage option and a mitigation option if that goes wrong, because the powers can still 'interpret' whatever they want out of something when it's 100% best practice, navigating that requires experience. You only have to look at the avoidance drama unfolding, if the governments don't like it plug the holes in the code, but they won't do that because that complexity allows 'interpretation' to increase take. So the rational choice, go to somewhere that respects your money and the effort you put in to make it. Ultimately it is choosing a jurisdiction that supports your business and personal interests for growth, it's not about lowering rates although that may be a side effect of those choices.
Note: whoever said about forfait in CH has absolutely no clue what they are talking about, you basically have to be a 'retired' multi-millionaire to apply for it and the top cantons you need to be an F1 driver or tennis pro. If you can prove you are retired which someone did at 30, then it can work, but for the other 99.99% being in a situation to integrate with this type of structure is a fictitious fantasy.
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@birzos Thank you for the detailed response! Regarding CH: there are a couple of cantons like Schwyz which is willing to accept "anyone" as long as your taxable income is over 600k CHF but Geneva is a bit more greedy since they barely settle under a million.
Presently it looks like I'll have three options within 1-2 weeks so I can choose between 3 countries where I can pay nothing or just below 200k in taxes. Legally. We'll see.
Presently it looks like I'll have three options within 1-2 weeks so I can choose between 3 countries where I can pay nothing or just below 200k in taxes. Legally. We'll see.
Schwyz has a population of 15,000, if you use that as a base you are opening yourself to all hell of problems as it's not 'believable' as no one with any sense is going to base themselves there. As already said "very few who have actually done it in practice -without- cutting corners or taking -massive- risks" and Schwyz would fall under the first category.
Anyway, saw you mentioned 0% and Nevis, those are not 'fair and reasonable' solutions to suit a lifestyle/money balance, they are purely money based for people in the lower £€$100,000s, have no idea what they are doing via low quality advisors, or a victim of the Dunning–Kruger effect.
No offense, but you really have any idea what you are talking about, the forfait "Foreign individuals who take up residence in Switzerland for the first time, or after an absence of more than 10 years, and who do not carry any (dependent or independent) gainful activity in Switzerland may choose to be taxed under a special regime called “lump sum taxation” or “forfait fiscal”" which means you -cannot- trade in Switzerland or have any income on Swiss soil.
Just to make the point clear, the forfait is based on the property price either rental or owned via a calculated multiple it's -not- based on income "The tax base is calculated on the basis of the costs incurred by the lifestyle of the taxpayer in Switzerland (rather than on wealth / fortune and worldwide income). In practice, the amount corresponding to such expenditure is fixed after negotiation with the tax authorities of the canton in which the taxpayer resides.".
So much theory, hyperbole, and rubbish with so few facts where people hope to have their cake and eat it presuming that the powers that be don't have processes in place to make sure that doesn't happen. If you play with fire expect to be burnt, hopefully other people reading this are a bit smarter!
Anyway, saw you mentioned 0% and Nevis, those are not 'fair and reasonable' solutions to suit a lifestyle/money balance, they are purely money based for people in the lower £€$100,000s, have no idea what they are doing via low quality advisors, or a victim of the Dunning–Kruger effect.
No offense, but you really have any idea what you are talking about, the forfait "Foreign individuals who take up residence in Switzerland for the first time, or after an absence of more than 10 years, and who do not carry any (dependent or independent) gainful activity in Switzerland may choose to be taxed under a special regime called “lump sum taxation” or “forfait fiscal”" which means you -cannot- trade in Switzerland or have any income on Swiss soil.
Just to make the point clear, the forfait is based on the property price either rental or owned via a calculated multiple it's -not- based on income "The tax base is calculated on the basis of the costs incurred by the lifestyle of the taxpayer in Switzerland (rather than on wealth / fortune and worldwide income). In practice, the amount corresponding to such expenditure is fixed after negotiation with the tax authorities of the canton in which the taxpayer resides.".
So much theory, hyperbole, and rubbish with so few facts where people hope to have their cake and eat it presuming that the powers that be don't have processes in place to make sure that doesn't happen. If you play with fire expect to be burnt, hopefully other people reading this are a bit smarter!
Your advice will not help him. It is funny that ET members living in Switzerland are leaving that country because of taxes. I know one of them and even know where he moved. Why would he move if there is a good solution in Switzerland? They are best placed to tell what the real situation is. But dw31583 knows everything always better.
If you speak Deutsch (German) then check this document. The only income that they would add to your tax base is:
- income from Swiss properties
- ncome from movable assets located in Switzerland
- income from Swiss situated chattels
- income from Swiss copyrights, patents or similar rights
- pension from Swiss source
- foreign sourced income for which you request the DTA (double tax agreement)
This is from the official document of lump sum tax regime in the canton of Schwyz.
Source: http://www.sz.ch/documents/mb_pauschalbesteuerung.pdf
The requirements are the same in every canton, only the min. tax varies. I don't understand the "it's not believable" part. Business and laws are based on facts. If you live in Schwyz, as many millionaires do, then you pay your taxes there. Simple as that.
By the way previously I thought that the lump sum tax regime is not available for traders as I'd be trading on Swiss soil thus it'd be considered Swiss sourced income, even worse an advisor confirmed this. Guess what, he was a British advisor with no clue idea about the Swiss rules.
A couple of days ago I contacted an advisor in Zurich and he told me that I can even use a foreign LLP or LLC to trade as long as I'm using it only to trade with my own funds and I don't do anything else with the entity as the local authorities doesn't say a word about how do you manage your wealth. I still can't believe this so a couple of hours ago I sent him an email to make sure that he understands what I'm doing but it looks like it can actually work.
It must work based on the link above by the way.
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Your advice will not help him. It is funny that ET members living in Switzerland are leaving that country because of taxes. I know one of them and even know where he moved. Why would he move if there is a good solution in Switzerland? They are best placed to tell what the real situation is. But dw31583 knows everything always better.
At least I brought some useful, valuable info to this place. Copy me. You'll do good for everyone. By the way yes, everything I said is still 100% true, correct and accurate. Not because I said it. Because these are facts backed by laws. Check 'em yourself.
It is funny that ET members living in Switzerland are leaving that country because of taxes. I know one of them and even know where he moved. Why would he move if there is a good solution in Switzerland? They are best placed to tell what the real situation is. But dw31583 knows everything always better.
Not that I find the Switzerland tax situation enticing, but the lump sump taxation is not for people already residing in Switzerland, so the ones who migrate there and the swiss citizens and residents won't have the same view on this.
Plenty of french, german and italian still living there afaik for a mix of tax reasons and convenience (similar language than back home, overall more business friendly policies and great life standard in the middle of Europe ).
There are other tax set ups available there, a french member of this board who is definetely not in the 9/10 digits like several famous expats in Switzerland moved there and seemed pretty happy with his tax situation (going through a local corporation trading overseas if I recall properly).
Even for french exilees btw, who make up most of the richest people in Switzerland, Switzerland has fallen behind UK and Belgium as their favourite destination.
Your advice will not help him. It is funny that ET members living in Switzerland are leaving that country because of taxes. I know one of them and even know where he moved. Why would he move if there is a good solution in Switzerland? They are best placed to tell what the real situation is. But dw31583 knows everything always better.
Well, I left as I was a regular resident of CH, not lump-sum-taxed. With lump-sum taxation: Many cantons stop this and even revoke the existing ones following public voting results. At least 1 even asked some of the benefitors of such agreements to either pay regular tax or leave the canton for good.
Furthermore lump-sum taxation will trigger a hefty EXIT-Taxation in some EU countries when you laave their taxation authority: Germany for example will tax you some 6 years on the highest possible taxation level and will request the difference between this and your swiss tax. And swiss government will get them the money!
So dw31583 might choose this venue if he migrates from an EU country without EXIT taxation. But he should also consider that this tax is due without chance of delay wether he makes profits or losses, come hell or highwater, month for month ..... never adjustable to the downside because of negative developments.....(which life never holds)..
Another serious reason for my decision to leave CH were (due to my age) considearations regarding my hefty US broker accounts and US estate taxation.
Kind regards
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It is very difficult to give a full and correct advice. The first thing is: what activity do you want to get taxed as low as possible?
In your posting there is a big mistake. Rich people who go to Belgium can have a better situation, but a trader will be taxed at around 70% all included (50% taxes and social security). So as we speak on ET about trading Belgium is a bad advice. I left Belgium as trader for tax reasons. For traders Belgium is far from a favorite destination, more like a nightmare.
If you need advice go to a professional, don't ask advice on ET.
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