Best Country for Trading (Tax efficiency)
- Thread starter ET873
- Start date
Also about Singapore - a place I like, and the asian state offering closest living standards to european's IME (possibly besides Japan but I haven't spent time there for a while, and as a foreigner you will be more at a handicap than in Singapore) - I didn't check closely recently but the real estate wasn't as expensive as HK, Paris, London or even less Monaco. In Sentosa Cove, which is quite high end for Singapore, you could get 100sqm+ apartment for 1million USD and fancy villas for 3 to 7million - forget about that in Paris, Monaco or London - last time I was in Monaco agencies were asking 50000 EUROS up for nothing special small apartments in not particulary prestigious areas. 100k up per sqm doesn't seem exceptional.
http://www.sentosacove.com/
As of screwing gold diggers in Monaco, why do you think it would be any different in Romania Colombia Philippines etc ??? I think the main difference is one is less likely to get laid in Monaco because they will have a harder time to stand out financially.
Also, if living off capital gains in HK and Singapore, you should pay 0% tax, not 15 or 16%
http://www.sentosacove.com/
As of screwing gold diggers in Monaco, why do you think it would be any different in Romania Colombia Philippines etc ??? I think the main difference is one is less likely to get laid in Monaco because they will have a harder time to stand out financially.
Also, if living off capital gains in HK and Singapore, you should pay 0% tax, not 15 or 16%
Thailand is most certainly an awesome location, the real estate is extremely affordable (an excellent apartment for rent 200 euros per month) and the quality seems good from the distance. It's also not an island so you definitely won't die of boredom. However, the visa situation isn't easy and the tax system is quite unclear for me with its 12 month remittance system. Last time I was in Monaco it was filled with old money sunburned Italians and French, can't imagine why anyone would want to live there (except for the taxes).
I spent several years in Thailand - loved it in my early to mid twenties than it lost most of its appeal. Now I find the place mostly ugly and dirty.
The visa situation is changing and the government made it a bit harder a few years ago, when people where staying years on end on short term tourist visas , but there should be ways for you ( (language) student visa or even a work visa if you set up a company there but the later will cost you more ). If you trade, tax situation will be very easy - you trade offshore either through a tax free corporation (like BVI or belize ) or even through your personal name on an offshore account and don't declare it. No tax. No problem to repatriate the funds you need for your living expenses or to live well beyond your declared means in Thailand. Hong Kong is a good logistic financial platform for the set up.
As of Monaco, although not as much as Paris and not beeing keen on hanging out at the beach, I find the french Riviera quite a pleasant place to live, between the Alps and the Mediterranean sea, although if not for tax reason I'd rather settle somewhere on the french side - but it's probably not for the younger crowd, even Nice has a large amount of retirees (I'm in my late thirties btw, and need much more confort than before ). Also Monaco is very safe, not so much the french side of the border or Thailand.
The visa situation is changing and the government made it a bit harder a few years ago, when people where staying years on end on short term tourist visas , but there should be ways for you ( (language) student visa or even a work visa if you set up a company there but the later will cost you more ). If you trade, tax situation will be very easy - you trade offshore either through a tax free corporation (like BVI or belize ) or even through your personal name on an offshore account and don't declare it. No tax. No problem to repatriate the funds you need for your living expenses or to live well beyond your declared means in Thailand. Hong Kong is a good logistic financial platform for the set up.
As of Monaco, although not as much as Paris and not beeing keen on hanging out at the beach, I find the french Riviera quite a pleasant place to live, between the Alps and the Mediterranean sea, although if not for tax reason I'd rather settle somewhere on the french side - but it's probably not for the younger crowd, even Nice has a large amount of retirees (I'm in my late thirties btw, and need much more confort than before ). Also Monaco is very safe, not so much the french side of the border or Thailand.
Good question. I unfortunately have nothing to validate my reply but the countries that spring to mind are: Switzerland and Liechtenstein, Barabdos and UAE. But I think with a little internet research it could be quickly found out.
If taxes are such an impediment, perhaps consider trading 1256 scheduled contracts. Index/commodity futures, forwards, non-equity & debt options, currencies, etc. Personally made the decision to exclusively trade index futures 6+ yrs back for three reasons in order of importance: tax advantage, liquidity, leverage. Commodities and currencies later added to repertoire. Endless opportunities in this realm, with many of the same setups found in equities.
Set up shop in an inexpensive area in US with low-to-zero state-income tax and max out at 23% 60/40 federal obligation. Most of the foreign low to zero tax zones have exceptionally expensive living requirements. Living in a 100sqm sardine can for 750-1MM surrounded by dense population gets old real quick when you move past globe trotting/bachelor mode.
What are you going to save...5-10% over the 1256 maxed rate to live in 2nd-3rd world or stagnant old $/old crowd vacation mecca while sacrificing US citizenship? All to potentially save $50-100k on a MM PnL? Perhaps that makes sense to some, certainly not to me.
Been through this myself as I have EU/US dual citizenship. I will echo G of Cutten, you are wasting your time. Spend your time fighting hard over commission structure and setting up tax vehicles that help you defer.
Set up shop in an inexpensive area in US with low-to-zero state-income tax and max out at 23% 60/40 federal obligation. Most of the foreign low to zero tax zones have exceptionally expensive living requirements. Living in a 100sqm sardine can for 750-1MM surrounded by dense population gets old real quick when you move past globe trotting/bachelor mode.
What are you going to save...5-10% over the 1256 maxed rate to live in 2nd-3rd world or stagnant old $/old crowd vacation mecca while sacrificing US citizenship? All to potentially save $50-100k on a MM PnL? Perhaps that makes sense to some, certainly not to me.
Been through this myself as I have EU/US dual citizenship. I will echo G of Cutten, you are wasting your time. Spend your time fighting hard over commission structure and setting up tax vehicles that help you defer.
1) Scrap all the answers pointing to low/no capital gains tax countries. If you trade for a living, your trading is considered self-employment and is taxed accordingly as personal income.
2) Scrap all the answers pointing to countries offering tax-exemption for foreign-sourced income. Trading income is generated at the location where youâre physically present. If youâre physically located in London trading US securities through a US online broker, the trading income is generated in London and taxed in the UK. I paid for legal advice and the tax lawyer assured me that he had seen a legal opinion on this in the UK and that in all likelihood it would be the same in Malta.
Solution:
A) Move to Malta. Climate among the best in the world; health care ranked 5th by the OECD; inexpensive real estate; low cost of living; boring place to live, which will help you concentrate on trading; short flying distance to Ibiza, Barcelona, the Riviera, Paris and London when you want to have fun.
B) Hire counsel to set up a trading company and a mother company in Malta and a mother company in Belize. This setup is fully accepted by the Maltase authorities and there are several legal opinions on the setup by all the big law firms. Your effective tax rate will end up at around 5-8%.
General advice:
⢠Follow the rules! I learned that the hard way: 1 year sentence, 6 months in prison and a lost career.
⢠Donât move to a location 12+ hours flight from you family and friends even if you long to get away from them. At some point you will miss them.
Alternatives:
⢠Monaco - if high-priced real estate is not a problem.
⢠Dubai - if you want 0% income tax and donât mind long flights.
⢠Singapore - if you can obtain a permanent visa and don't mind long flights and trading at night.
2) Scrap all the answers pointing to countries offering tax-exemption for foreign-sourced income. Trading income is generated at the location where youâre physically present. If youâre physically located in London trading US securities through a US online broker, the trading income is generated in London and taxed in the UK. I paid for legal advice and the tax lawyer assured me that he had seen a legal opinion on this in the UK and that in all likelihood it would be the same in Malta.
Solution:
A) Move to Malta. Climate among the best in the world; health care ranked 5th by the OECD; inexpensive real estate; low cost of living; boring place to live, which will help you concentrate on trading; short flying distance to Ibiza, Barcelona, the Riviera, Paris and London when you want to have fun.
B) Hire counsel to set up a trading company and a mother company in Malta and a mother company in Belize. This setup is fully accepted by the Maltase authorities and there are several legal opinions on the setup by all the big law firms. Your effective tax rate will end up at around 5-8%.
General advice:
⢠Follow the rules! I learned that the hard way: 1 year sentence, 6 months in prison and a lost career.
⢠Donât move to a location 12+ hours flight from you family and friends even if you long to get away from them. At some point you will miss them.
Alternatives:
⢠Monaco - if high-priced real estate is not a problem.
⢠Dubai - if you want 0% income tax and donât mind long flights.
⢠Singapore - if you can obtain a permanent visa and don't mind long flights and trading at night.
Good advice for most. But I would add in the most emphatic terms do not just avoid places that are cramped and make you unhappy -- as he has pointed out -- be proactive and live where you are happy ... or even happiest.
Since we only go through once it seems to me that two points here and two there on the tax end and working with the sharpest pencil all the time is not the way to go. Of course we all must be diligent or we cannot survive but if it goes well do not forget why you worked hard to make it go so well. If you want to be right downtown figure out how to get there. If instead you want a view of the lake from the living room find a lake that suits you. And when you get that feeling that we all get when the government picks our pocket be thankful there is a pocket to pick and another pocket with some backup.
Since we only go through once it seems to me that two points here and two there on the tax end and working with the sharpest pencil all the time is not the way to go. Of course we all must be diligent or we cannot survive but if it goes well do not forget why you worked hard to make it go so well. If you want to be right downtown figure out how to get there. If instead you want a view of the lake from the living room find a lake that suits you. And when you get that feeling that we all get when the government picks our pocket be thankful there is a pocket to pick and another pocket with some backup.