Best Country for Trading (Tax efficiency)

[d08]

Sure. I don't know why I have to spell out my point, but I will do it for you:

One doesn't pick a country/place to live solely based on how low the capital gain tax is there. There are just so many other factors and most of them way more important than low taxes. There you have it and I am sure you agree with it.

Now if the discussion was about how to get a tax residency/citizenship while you don't have to live in that particular country, that is another question completely.

And by the way I love warm fresh yak milk...

The title of the thread is "Best Country for Trading (Tax efficiency)", completely self-explanatory. I don't even know why you start talking about other, non-tax related topics, was the intention to deliberately derail the conversation?

Your initial point was that countries with lower taxes are less desirable places to live in and that's not true either. You can live in a shitty area of Chicago or Paris and still pay very high taxes. Or you can live in Thai beach town with no taxes and amazing surroundings. Internet has been a great equalizer and the perceived perks of the west aren't exclusive any longer.

 

[Pekelo]

Your initial point was that countries with lower taxes are less desirable places to live in and that's not true either.

That is debatable, but otherwise we are in agreement. I think we would agree that most countries with zero or very low taxes are not the most desirable places. Hey Pakistan has zero capital gains tax too! I am sure there are wonderful places in Pakistan where you could be happy but generally one wouldn't pick Pakistan just on that factor alone.

Otherwise what is the point of this thread? It is not that hard to google "zero capital gains countries" and the OP's question is answered. The ideal solution would be to find a low tax but still nice place to live in country.

Or as I mentioned earlier, how to establish a tax residency/citizenship without actually living in that place.

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One thing I didn't see mentioned in this thread is the getting married to someone from a zero cap. gain tax country. As long as she stays a nonresident alien and filing separate tax returns, one just puts the money under her name and trade it and she files her low or no cap. gain tax in her original country.

Here gentlemen, Mongolian single ladies:

http://www.connectingsingles.com/dating_1_604_2_1/mongolia_women.htm

 

[d08]

That is debatable, but otherwise we are in agreement. I think we would agree that most countries with zero or very low taxes are not the most desirable places. Hey Pakistan has zero capital gains tax too! I am sure there are wonderful places in Pakistan where you could be happy but generally one wouldn't pick Pakistan just on that factor alone.

Otherwise what is the point of this thread? It is not that hard to google "zero capital gains countries" and the OP's question is answered. The ideal solution would be to find a low tax but still nice place to live in country.

Or as I mentioned earlier, how to establish a tax residency/citizenship without actually living in that place.

-----------------------------------

One thing I didn't see mentioned in this thread is the getting married to someone from a zero cap. gain tax country. As long as she stays a nonresident alien and filing separate tax returns, one just puts the money under her name and trade it and she files her low or no cap. gain tax in her original country.

Here gentlemen, Mongolian single ladies:

http://www.connectingsingles.com/dating_1_604_2_1/mongolia_women.htm

Again, no-one said it's all about taxes but this thread is about taxation, mostly.
It's not as easy as Googling for a list of zero cap gains tax countries, it's a lot more complicated like that. While citizens might be taxable in a country the aliens might not, residency is another thing altogether.

You keep bringing up Pakistan. Cherry picking is annoying and leads nowhere.
Zimbabwe has some of the highest taxes in the world, I guess following your logic, it must be a wonderful place to live in.

The marriage idea is horrendous, that's actually how you lose everything and taxes will be the last thing on your mind. It takes a lot of work and many years to find someone you trust on that level.

 

[Pekelo]

Zimbabwe has some of the highest taxes in the world, I guess following your logic, it must be a wonderful place to live in.

Give me a strawman, when I need one...

Here is a website, listing some of the tax havens:

https://wiki.timetotrade.eu/Tax_Havens

Interestingly, Kenya, Pakistan, Georgia or Mongolia* aren't even mentioned, I wonder why? Because nobody wants to live there! So no, I am not cherry picking, I go with the flow...

*My apologies to our friends in Ulan Bator, yes, I know they have electricity there,
(and they are also choking on smoke, just to counter act your picture with reality)

http://www.latimes.com/world/asia/la-fg-mongolia-air-pollution-20150515-story.html

 

[jk90029]

As above, if Mongolia has 2% CapGainTax and cheap housing, then best (moneywise) choice might be

1) Declare residency in Mogolia
2) Trade US stocks etc (markets with NO transaction tax AT ALL) with cheapest broker

Tell me if you thinks another choice.

Depending on where and which market, there might be a HUGH difference in AFTER-TAX profit.

For example with annual 30% (trading) logic (before tax) assured,
1) US charges 40% so that after-tax return is 18%.
2) Mongolia charge only 2% so that 28% is annual return going home.

With initial seed of 100K, for 50 years (30 to 80)
1) 100*1.18^50 = 392735.7 K
2) 100*1.28^50 = 22934986

Therefore US government charges roughly more amount of 22934986 - 392735 = 22542251K
than Mongolia government. Please note the ratio 22934986/392735 =58.39812

 

[jk90029]

It's not as easy as Googling for a list of zero cap gains tax countries, it's a lot more complicated like that. While citizens might be taxable in a country the aliens might not, residency is another thing altogether.

I heard there is even NO CapGainTax country like Monaco. However expensive housing cost.

Probably, UK is the worst country for their transaction tax of 0.5%, especially to frequent trader.
Suppose a trade buy/sell four times a month(one time a week), then about 24% of Jan seed will be gone to government until December.

 

[luisHK]

stamp tax in the UK is irrelevant to this thread, and to UK based traders trading other.products than uk equities, but i know you missed it.

forget about life in Monaco, you live tax free there : crime ridden and covered in smog

 

[luisHK]

lowering your tax rate is an important step in shortening your path to financial independance, once u manage to live of long term cap gains the tax burden is lower in most parts of the world,much much lower in some european countries, but not an easy target if when u are building your wealth you pay 60% of your income or more in various taxes.

 

[jk90029]

you pay 60% of your income or more in various taxes.

Instead of paying 60% every year, better to fly to country with low tax rate.
(Specially for the consistent-winning traders)

If you are a loser(probably 90%), then no big difference between where you are.
Don't come back to this thread.

 

[luisHK]

Why would that be, winner?
I heard u get a free chocolate egg once u figure out how relevant the transaction tax in a country is to the situation of traders domiciled in the same country.
Go for it !