Best Country for Trading (Tax efficiency)

[Swan Noir]

Posted Friday, February 05, 2010 6:14 AM
In Iran, Inflation Could Threaten Regime
Babak Dehghanpisheh

Iranian President Mahmoud Ahmadinejad continues to face protests at home and the possibility of international sanctions abroad, but the biggest threat to his rule is something more banal: inflation. Iran's official inflation rate has now reached 13.5 percent, but the actual rate could be twice as high. And it looks likely to get worse. Come spring, the government plans to stop subsidizing basic goods and will instead give cash directly to poor families. That plan, as well as Ahmadinejad's push to give out more loans, will expand the cash supply and likely drive inflation higher still. Efforts to combat rising prices have so far failed.

Quote from Sanaz3:



Bank Saman for instance, pays fixed 18.44% interest on long-term 5-year deposits/investments.

 

[rbartell]

This may be a dumb question but:
When it is said that a country has no capital gains taxes - like Hong Kong, how does that work with trading (short-term cap gains)? For example the U.S. has a 0-15% capital gains tax (depending on tax bracket), but short-term cap gains are taxed at regular income (which is the number that matters for most us).

 

[usman88]

Another option is Pakistan. It is a pretty safe country except for some areas bordering Afghanistan.

Tax rate is 30% on income but tax system is one of the most inefficient in the world which means you dont need to report your income. You can freely openly bank accounts and all major international banks have large presence here (RBS/Citibank/HSBC/Standard Chartered Bank/Barclays) not to mention local banks which are quite big.

In $3000 per month, you can have a 2000 Sq. Yards house in main locality and live like a king with a driver, 2 guards and 2 servants for the house. Another $4000 per month and you can be driving cars like Mercedes S-class, BMW 7 series, Lexus etc

Internet connections are decent with 4MBPS costing $50/month which is more than enough for scalping.

The best stuff You can trade all markets

Asian markets open at 7:00am
European markets open at 2:00pm
US markets start at 7:00pm

Nothing can beat this!

Bank accounts offer interest upto 12% per annum (profit paid monthly!!!). KSE which is a local stock exchange has been one of the worlds best performing stock exchanges in the last decade

 

[rubibond007]

Quote from bawr:

Among others, Argentina, Egypt, Hong Kong, Jamaica, Singapore, Switzerland, Turkey, and the UAE have no capital gains tax.

Japan and the Netherlands have effectively negligible capital gains tax.

However, US citizens and permanent residents are out of luck, as they must pay taxes to the IRS, no matter where they are domiciled. (The Philippines and Eritrea are the only other countries which impose such a draconian policy.)

http://www.escapeartist.com/efam5/expat_tax_2.html

 

[moarla]

Quote from rubibond007:

http://www.escapeartist.com/efam5/expat_tax_2.html

when you are a daytrader /swingtrader you are qualified in Switzerland as professional trader and you pay cap gain tax!!

in Netherlands you pay 30% tax on a presumed capital gain of 4% of your capital: = 1,2% tax of your CAPITAL (not gains)

be careful what you say, if you dont know exactly what you are speaking about....
(dont know nothing about Jamaika and the other countrys)


TAX free countrys living there: Monaco, Andorra, Bahamas and other caribic islands, Dubai and other arabic countrys
special tax status in: UK, Malta, Switzerland (not much to pay )

 

[dandxg]

Quote from rubibond007:

http://www.escapeartist.com/efam5/expat_tax_2.html

I used to subscribe to them back in 01-02. They recommended Buenos Aries big time. Same time they were in utter chaos. They promote as heavy as Tump does IMO. Little objectivity.

 

[noob_trad3r]

Quote from SNYP40A1:

I am not a career trader, but curious: What's the best country for trading? Considering tax efficiency / lowest capital-gains tax only. Somewhat in a response to this thread:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=189497&perpage=6&pagenumber=1

Somalia. No taxes at all local or government.

 

[Hittfeld]

Quote from SNYP40A1:

Once the money is outside the US in a foreign account, how would the US know about it? If they don't know about it, you simply don't report capital gains in a foreign account.

You can`t open an account anywhere without showing your passport. Once a bank/broker will see your US-passports they either will refuse to open an account for you (try to open an CFD-trading account!!!), or you will be classed as an "notify the irs - account", no joking, even in switzerland. Maybe you try it in Russia or IRAN.

Regards

Hittfeld

 

[benwm]

Quote from usman88:

Another option is Pakistan.

I heard the cost of living is pretty cheap in Afghanistan and they've got a great internet setup.

 

[benwm]

The cleanest solution seems to be to move to a low tax destination and become a resident.

But presumably if you're using the local internet connection that would be deemed as "carrying on a business within the country"so presumably that rules out Panama and Costa Rica which only tax you on "locally derived income"??

Which is a shame because I believe the internet over there is quite reliable and nice climate etc.

Does anyone trade out of Panama / Costa Rica and is willing to share their experience?