Living on a boat and avoiding taxes
- Thread starter Fishbird
- Start date
If your trading taxes are stopping you from reaching financial freedom then something is wrong....either with your trading or with your tax accountant...
Like those of us who buy a big ass Cadillac...the price of gas is not a consideration....what I'm trying to say is if your a good trader, taxes are part of the business.....
I strongly suggest you look for a sharp tax accountant to study your trading and let him/her find the ways for to keep more and the gov't less.....before you go giving up citizenship or what have you..
If you're not an american citizen your options are unlimited.
With regards to the yacht, if you're docked at a port, your presence in the country will be recorded.
Most countries will allow you to stay for 3 to 6 months on a tourist visa. After you're present in the country for more than 180 days out of a year, you're likely to be considered a temporary resident of that country and would most likely to subject to the tax laws and obligations of that country (On any income earned while there - whether the money is earned within the country or not)
Countries have double taxation treaties that exist to ensure everyone pays at some point. If you're a citizen of one country and a resident of another, you will in most cases have to pay taxes in the country you are resident in.
Think of it like this - if you're using their system they will expect you to abide by the tax laws.
If you really wanted to live on the yacht and avoid taxes, you would need to spread your time between a minimum of three countries per year, for less than 180 days each. This includes your country of citizenship.
However, you do not need a yacht to do it. You can do it without a yacht as well. This is one reason why Formula 1 drivers and Pro Tennis Players drivers never pay taxes. They are never in any country long enough to be deemed a resident.
While you are not present in your country of citizenship, you will need to provide a letter to the tax office stating that your were not resident during the tax year and did not earn any income in the country.
If you going to do the above, it's probably best to have an offshore entity to manage your assets though.
And that's about it.
Runningbear
With regards to the yacht, if you're docked at a port, your presence in the country will be recorded.
Most countries will allow you to stay for 3 to 6 months on a tourist visa. After you're present in the country for more than 180 days out of a year, you're likely to be considered a temporary resident of that country and would most likely to subject to the tax laws and obligations of that country (On any income earned while there - whether the money is earned within the country or not)
Countries have double taxation treaties that exist to ensure everyone pays at some point. If you're a citizen of one country and a resident of another, you will in most cases have to pay taxes in the country you are resident in.
Think of it like this - if you're using their system they will expect you to abide by the tax laws.
If you really wanted to live on the yacht and avoid taxes, you would need to spread your time between a minimum of three countries per year, for less than 180 days each. This includes your country of citizenship.
However, you do not need a yacht to do it. You can do it without a yacht as well. This is one reason why Formula 1 drivers and Pro Tennis Players drivers never pay taxes. They are never in any country long enough to be deemed a resident.
While you are not present in your country of citizenship, you will need to provide a letter to the tax office stating that your were not resident during the tax year and did not earn any income in the country.
If you going to do the above, it's probably best to have an offshore entity to manage your assets though.
And that's about it.
Runningbear
Why not just get an IBC (Internet Business Corp) domiciled in a friendly tax environment (most places in El Caribe) open and run your trading account through that. It all can be done 'virtually' you don't have to physically be there. You can have everything setup offshore, IBC in the Caribbean, Brokerage house in the U.S. Your countries govt is non the wiser 
There you go, all set!
There you go, all set!Quote from zman7854:
Why not just get an IBC (Internet Business Corp) domiciled in a friendly tax environment (most places in El Caribe) open and run your trading account through that. It all can be done 'virtually' you don't have to physically be there. You can have everything setup offshore, IBC in the Caribbean, Brokerage house in the U.S. Your countries govt is non the wiser
I assume you mean a International business Corporation.
Best way to hide it is to have the shares owned by an asset protection trust. And have some offshore directors from a trust company.
Problem is the directors won't let you open a trading account that allows margining. So no universal account at IB. Only cash accounts.
This is because the country they live in has laws regarding the administering of trusts and companies. So if you blow up the can be held liable as directors or trustees.
Also with the war on terror, they have all been put under pressure to record who the ultimate owners of the assets are. If a foreign government wants the identity of the owner they can request it via the courts.
In the past they would not disclose the info, on pain of a long jail sentence.
Now if they get a court order they will, all the foreign jurisdiction needs to show is that they think the money is being launder for el queda or for Saddam.
And out pops your name.
Fishman, ok see.. but I was serious about the ship.
"We currently manage The World, the only private community at sea offering residential options and rental travel experiences to the discriminating traveler. Whether you are interested in purchasing a residence or renting a private home onboard The World, we are eager to assist you."
Taken from www.residensea.com website.
Br,
Syrre
"We currently manage The World, the only private community at sea offering residential options and rental travel experiences to the discriminating traveler. Whether you are interested in purchasing a residence or renting a private home onboard The World, we are eager to assist you."
Taken from www.residensea.com website.
Br,
Syrre