Best Country for Trading (Tax efficiency)

otctrade said:
Interesting. All the major ones like Etrade, fidelity etc said it's not possible unless one member is in the US
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That's weird, I've never experienced that. Opening the account was pretty straightforward after I gave all the relevant documentation. I know bank accounts though can be difficult to open as a non-US person.
 
Vstk_ said:
There is no tax treaty to avoid double taxation: https://www.canada.ca/en/department-finance/programs/tax-policy/tax-treaties/in-force.html

So basically you need to sever all ties with Canada that might give them a reason to argue that you are liable to tax :
- no local accommodation (including a relative's place that you would regularly go to)
- no trading / making any money while in Canada
- no spending more time in Canada than in Belize
- no vehicle registered in Canada, no valuable belongings there... (the vital interests argument)
- be able to prove that you are indeed a tax resident somewhere else : that is the part you need to check with Belize
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Surely you wouldn't need to do all that if the trading was done by your company which is based in Belize
 
I don't know where is the best country for trading, but I know one thing: Canada and the US are amongst the worst. Proof: Look at these shitty leverages controlled by the IIROC crassly in favour of the CAD.

https://www.forex.com/en-ca/support/margin-requirements/

These leverages, my friend, are what prevent you from diversifying your portfolio enough so it can be balanced to face any financial hurricane. These leverages, my friend, crassly favour Canada's government vs other countries and currencies.

This tells it all. Canada suffers from, unfortunately, a Pinocchio nosed, bombastic (not as bombastic as the US of course), Orwellesque Big Brother government trying to regulate and spy on your financial life from A to Z, viewing you as a milk cow instead of a free minded and valued contributor to the local economy.
 
Wakey, wakey ... :)
In order to select 'best country for tax efficiency' - I think it is critical to be completely clear on where to pay which tax. I've read this thread beginning-to-end and followed up with hours of further research but would like more clarity.

There are 3 variables: Country A - Incorporation | Country B - Owner Tax Residence | Country C - Physical Trading ...
(the rabbit hole goes deeper with Resident Corp vs Non-Resident Corp & Trader vs Investor...)

Q1: Salary vs Dividend: In which scenario(s) do you pay yourself a salary vs paying yourself a dividend?

Q2: Withholding: In which scenario(s) is withholding tax applicable? And to which Country is it payable?

Q3: Social Sec. Contribution: In which scenario(s) are you required to pay local Social Contributions?

NOTE: I've asked these questions of numerous local 'professionals' in various jurisdictions and answers range from (a) they have no idea / that's illegal / impossible / not allowed (b) partial answers / conflicting answers (c) pushing their own agenda (d) (very few) competent but still pushing their jurisdictions...
 
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Does anybody have a list of countries in Europe or elsewhere, where countries don't differentiate between longterm and short-term capital gains? For example, in the Netherlands, Spain and Portugal trading income will be treated as regular income and therefore subject to regular income tax. However, i.e. in Germany there is no differentiation between longterm and short-term capital gains and day-trading income will only be subject to 25% capital gains, regardless how long you hold the asset and how big your position is.

Does somebody know alternative countries where regular capital gains tax apply, even for daytrading income?

Croatia has 10%, Greece has 15% and Italy 26% capital gains. Will daytrading income be subject to these rates while living there?

Many thanks.
 
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p4trick88 said:
Does somebody know alternative countries where regular capital gains tax apply, even for daytrading income?
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Estonia has a 20% rate regardless of term. But you might or might not need to pay yourself minimum salary of ~500€.
 
dw31583 said:
If you're using an LTD then it will be subject to the Portugal corporate income tax because you as the owner and director will make the entity a tax resident company in Portugal. If you're using a flow-through entity, an LLC for instance then it won't change anything because you, the individual owner must pay taxes on your personal tax return.

Yes, both the dividends and the bonds you mentioned would be taxed at ordinary rates in Portugal. Portugal NHR is better suited for British pensioners.

It's funny that you're asking me about this because I spent my week analyzing this tax regime and asking around both Portuguese and British advisors about my options. In short, it wouldn't work.
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I was looking into Portugal's NHR and realized active trading doesn't apply.

So what about I establish 2 corporations both in a 0% tax country ie Dubai or BVI.... (preferably somewhere has treaties w/ Portugal)
2nd corp open trading brokerage accounts pretty much anywhere, ie Cyprus,...
1st corp owns and manage 2nd corp.
I will own and manage 1st corp and invest into 2nd corp.
=> myself and 1st corp are probably considered Portugal residence and get taxed. what about 2nd corp's residency?
if 2nd corp pays 1st corp minimally then 1st corp pays me all of that as a salary-> I'm taxable at minimal rate but 1st corp makes no profit -> no tax.
and I also take dividends from 2nd corp => tax free for 10 years under NHR??

Does that work?

edit. come to think of it. if 1st corp is in wyoming or something with no listed owner/directors because it's not making profit -> not worrying about tax. I can just be listed as an employee of it....
 
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p4trick88 said:
Does anybody have a list of countries in Europe or elsewhere, where countries don't differentiate between longterm and short-term capital gains? For example, in the Netherlands, Spain and Portugal trading income will be treated as regular income and therefore subject to regular income tax. However, i.e. in Germany there is no differentiation between longterm and short-term capital gains and day-trading income will only be subject to 25% capital gains, regardless how long you hold the asset and how big your position is.

Does somebody know alternative countries where regular capital gains tax apply, even for daytrading income?

Croatia has 10%, Greece has 15% and Italy 26% capital gains. Will daytrading income be subject to these rates while living there?

Many thanks.
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In addition to finding out if regular capital gains tax will apply to trading in Croatia, Greece and Italy, what do you guys think of trading through an Armenian bank account?

I believe you can fairly easy open a bank account in Armenia, without needing a company or local job. Armenia is not part of CRS and doesn’t have a DTA with many countries such as Portugal.

I’m using IBKR HK. Couldn’t I tell IBKR that I’m living in Armenia, or even a third country to add confusion, while actually living in Portugal? How would the Portuguese authorities find out about my trading income?
 
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