You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Living on a boat and avoiding taxes
- Thread starter Fishbird
- Start date
heres my situation, i have the dual nationality, i am an american citizen and have mexican nationality, so i want to trade U.S. equitieswith a U.s. broker while living in mexico . Assuming i only make like 30k a year, can i avoid paying all taxes, or do i have to renounce U.S. citiizenship? I see this 80k figure being tossed aroung and "foreing income credit" does it apply to me?
Quote from kooltrader:
"The US is the only nation... to my knowledge that requires you to pay income tax on money NOT EARNED in the US. There are some, very little exceptions."
The USA and the Philippines. Only countries on Earth that do this last time I looked into it. Unfortunately for us Yanks, most won't give up citixenship for cash. I know I wouldn't.
Jay
Quote from eethie777:
heres my situation, i have the dual nationality, i am an american citizen and have mexican nationality, so i want to trade U.S. equitieswith a U.s. broker while living in mexico . Assuming i only make like 30k a year, can i avoid paying all taxes, or do i have to renounce U.S. citiizenship? I see this 80k figure being tossed aroung and "foreing income credit" does it apply to me?
The 80k deduction is for earned income if you reside outside the US. Trading gains are not considered earned income.
But, what you can do is create a corporation which trades that pays you as an employee. This can be an off-shore corp not subject to most of the wimms of most governments. Panama is a great place to do this. As an employee, then it's "earned income". You can take it from there, lots you can do and do legally.
Just discovered this thread, quite opportune timing given that I've been looking into this quite extensively over the past couple of weeks.
The two most realistic solutions I'd come to were,
1) Obtain residency in Gibraltar.
Essentially, the main requirement is to own property there, which is reasonably priced. You only need to spend 30 days a year in Gibraltar, and ensure that the length of your stay in other countries does not exceed their non-residency limits.
Then, you can apply to become a HNWI (high net worth individual) if you can demonstrate that your net worth is > £1MM. This limits your tax liability to £20,000/year regardless of your wealth or income.
2) Become a UK resident non-domicile.
Establish UK residency, then so long as your father was born in a different country, and you haven't established concrete links to the UK (i.e. purchase of a burial plot etc), you can apply to be a non-domicile.
I hear you can even do this if you've been living in the UK for years.
Then simply trade through a US brokerage.
Non-domiciles are only taxed on foreign income if it's remitted to the UK.
Worldwide purchases that are imported are exempt from the remittance rule.
DISCLAIMER - this is only my understanding, based on my research so far.
Have arranged to meet with an international tax accountant to work out specifics.
After all, Do It Yourself TAX avoidance can be a risky business.
The two most realistic solutions I'd come to were,
1) Obtain residency in Gibraltar.
Essentially, the main requirement is to own property there, which is reasonably priced. You only need to spend 30 days a year in Gibraltar, and ensure that the length of your stay in other countries does not exceed their non-residency limits.
Then, you can apply to become a HNWI (high net worth individual) if you can demonstrate that your net worth is > £1MM. This limits your tax liability to £20,000/year regardless of your wealth or income.
2) Become a UK resident non-domicile.
Establish UK residency, then so long as your father was born in a different country, and you haven't established concrete links to the UK (i.e. purchase of a burial plot etc), you can apply to be a non-domicile.
I hear you can even do this if you've been living in the UK for years.
Then simply trade through a US brokerage.
Non-domiciles are only taxed on foreign income if it's remitted to the UK.
Worldwide purchases that are imported are exempt from the remittance rule.
DISCLAIMER - this is only my understanding, based on my research so far.
Have arranged to meet with an international tax accountant to work out specifics.
After all, Do It Yourself TAX avoidance can be a risky business.
I have a house in Spain , a house in South Africa and a yacht in the Caribbean .I spend 4 months a year at each .I hold a South African passport and a Portuguese passport. As far as the South Africans are concearned Im resident in Spain. As far as the Spanish are concerned Im resident in South Africa .As far as the Portuguese are concerned Im domiciled in Portugal , but not resident .
I am the only shareholder of a company in the British Virgin Islands .The company employs me to trade and holds several trading accounts with various brokers. Profit is paid into various banks offshore.
My wife is the only shareholder of another BVI company. This company owns all our assets .Furthermore this company employs my wife as an adviser. My company pays her company a fee for her consulting services.
All this is legal btw . I forsee some potential problems in a few years when my daughter hits school going age and we need to stay in one place . Ill cross that bridge when it comes though.
Oh, someone earlier said that 'there is no broadband at sea.' There is. Of the several options available I use the Seatel WaveCall set up. Works at 512kbps costs about a grand / GB, but whats the price for freedom ?
I am the only shareholder of a company in the British Virgin Islands .The company employs me to trade and holds several trading accounts with various brokers. Profit is paid into various banks offshore.
My wife is the only shareholder of another BVI company. This company owns all our assets .Furthermore this company employs my wife as an adviser. My company pays her company a fee for her consulting services.
All this is legal btw . I forsee some potential problems in a few years when my daughter hits school going age and we need to stay in one place . Ill cross that bridge when it comes though.
Oh, someone earlier said that 'there is no broadband at sea.' There is. Of the several options available I use the Seatel WaveCall set up. Works at 512kbps costs about a grand / GB, but whats the price for freedom ?
Downloading speed is 512 kilobits per second. Which means it takes about 256 minutes to download a 1 gig file which costs a $1000 .Running with 2 computers and with live streaming data coming in I pay about $6000 per month excluding the time my wife spends on the telephone....
Oh , I wanted to add that US citizens working on yachts dont pay tax if they earn less than $80 000/year . Im not sure if that applies to all US citizen or just those employed offshore.
Oh , I wanted to add that US citizens working on yachts dont pay tax if they earn less than $80 000/year . Im not sure if that applies to all US citizen or just those employed offshore.
I'm sure we cannot count on you for military service. We cannot count on you when the country needs someone for defense, development, etc.
Tax! yes sometimes I complain as well but so what! More often than not I'm satisfied because at least I can contribute to the country where I live and share values. I know that my contribution is far less than those guys who are in the armed forces.
Tax! yes sometimes I complain as well but so what! More often than not I'm satisfied because at least I can contribute to the country where I live and share values. I know that my contribution is far less than those guys who are in the armed forces.
Quote from Fishbird:
Hi
Here in Europe taxes are stopping me from reaching financial freedom.
The more i make, the higher the taxes are pushed exponentially.
Moving to Switzerland is not an option anymore because renting/buying a house there costs as much as renting/buying 3 in EU.
All those tax-free countries are drowning in money and consequently prices are up.
Too far for my still small but profitable account.
While looking for other solutions to this, i came across the idea of buying a boat or yacht and then telling the government that i dont live in his country but on the water in variing countries.
Any captain here who can tell how this is handeled?
I think it only applies if you live on the high sea but maybe this is a forgotten way to save taxes.
Thanks