Best Country for Trading (Tax efficiency)

luisHK said:
A couple of people shared a similar idea about automatic information exchange a couple of pages back.
My claim was that this year or next (when is the date you advanced when there's an agreement coming to execution ?) information from Taiwan, mainland China and local UAE banks (which don't include the international banks from DIFC - Dubai Internationa Financial Center) wouldn't be shared, especially not automatically. Are you having a problem in those juridictions ?

Besides regarding your listing a few pages above, which is quite interesting, can you add or link some extra info on Portugal and Spain ?
I'm actually considering going back to Europe, and whereas Portugal is the first choice at the moment, because even without a complicated set up taxes can be pretty sweet and there are less social troubles there than in Spain - or than in Belgium for that matter, which I'm considering less and less- I would much rather move to Spain, where I feel very much at home.
I had a quick check a while ago for set ups in those countries minimising tax on offshore income but haven't found much useful info. I don't trade much anymore btw,with a little tweeking I could get most or all on passive income, but than I don't like witholding tax on dividends.

As of Dubai, again, i'm not sure where you got this information that expats, especially non muslims, go to jail for having sex outside marriage. For the guys i know who have enough spare cash there, it is a very good pick up place. And if you get tired some drugstores have huge stacks of cyalis and viagra which they sell over the counter.
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May I pm you?
 
The Netherlands may be an interesting option as well.
I am considering moving there since i live close by anyway.
It is somehow complicated but what i found so far is this:

In the Netherlands as a private trader, not as a company, you pay taxes as set in "box 3".
The laws are going to change for 2017 and the most recent numbers i found are these:
If you have 500.000€ in private savings, they expect you to gain an average return of 4.7%/year = 23.500€/year.
Over this amount you have to pay 30% tax = 7050€.
So either if you gain more or less return then 4.7% you always pay 7050€, even if you have a negative annual return.
If you have over 975.000€ private savings the fixed expected return becomes 5.5%/year, this would mean 16087.5€ in annual taxes.
Below 75.000€ the fixed expected return is 2.9% which would result in 652.5€ annual taxes.

So this means if you make a return of 50% over the 500.000€ you make 250.000€ profit and you only pay 7050€ taxes = 2.82%.
If you make 10% you would pay 14.1% (again 7050€) tax over the return, still not that bad.

Notice that this is information i found online myself and could be wrong.
I am in early contact with an accountant in the Netherlands to find out more about their taxes.

Where i live (Belgium), taxes over short term trading returns (everything below 6 months) are a hell, as a private person you pay up to 50-60% taxes and as a business it is almost impossible to stay positive after taxes. I live only a 10 minute drive away from the boarder with the Netherlands so for me this is the best option i guess.

Here is the link with more information in Dutch.
http://www2.deloitte.com/nl/nl/pages/tax/articles/belastingplan-2016-herziening-box-3.html
 
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RDK91 said:
The Netherlands may be an interesting option as well.
I am considering moving there since i live close by anyway.
It is somehow complicated but what i found so far is this:

In the Netherlands as a private trader, not as a company, you pay taxes as set in "box 3".
The laws are going to change for 2017 and the most recent numbers i found are these:
If you have 500.000€ in private savings, they expect you to gain an average return of 4.7%/year = 23.500€/year.
Over this amount you have to pay 30% tax = 7050€.
So either if you gain more or less return then 4.7% you always pay 7050€, even if you have a negative annual return.
If you have over 975.000€ private savings the fixed expected return becomes 5.5%/year, this would mean 16087.5€ in annual taxes.
Below 75.000€ the fixed expected return is 2.9% which would result in 652.5€ annual taxes.

So this means if you make a return of 50% over the 500.000€ you make 250.000€ profit and you only pay 7050€ taxes = 2.82%.
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So, they don't need to know the real profit made? They want to know just the size of the capital at start of the year, and from that they assume a profit of 4.7% p.a., right?
I would be careful, because this smells fishy...
 
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Netherlands works only if you're investing and not trading. A trader tried to get a ruling from the tax authorities and they didn't say that you can include your trading income in box 3. If you have a job and you earn $10k-$20k per year from trading then you can but if you make more then it's taxable.

Btw I was talking with a Dutch lawyer on the previous week exactly about this because I was curious if it could work. It wouldn't.
 
dw31583 said:
Netherlands works only if you're investing and not trading. A trader tried to get a ruling from the tax authorities and they didn't say that you can include your trading income in box 3. If you have a job and you earn $10k-$20k per year then you can but if you make more than it's taxable.

Btw I was talking with a Dutch lawyer on the previous week exactly about this because I was curious if it could work. It wouldn't.
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I already thought it was too good to be true.
So then it will be taxed in box 2 (if you start a BV) which means you have to pay 20% over the returns after expenses. The rest of the money you can leave in the BV or pay out as a dividend which is taxed at 25%. Still much better than in Belgium anyway.
 
marsman said:
So, they don't need to know the real profit made? They want to know just the size of the capital at start of the year, and from that they assume a profit of 4.7% p.a., right?
I would be careful, because this smells fishy...
More...

Unfortunately this only counts for residents who also have a job in the Netherlands according to dw31583's post.
 
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