Monaco with NO income tax / what else country?

i am nobody said:
If you make over 1 million a year the cheapest and safest solution will be Monaco and trade in your personal name. Only cost will be rent of a flat and live there 3 months a year. This construction is 100% waterproof. LLC in low tax countries is not 100% waterproof.
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AT the Monaco apartment finder link at http://www.pirasimmobilier.com/en/fiches/13869-studio flat in annonciade mixte use.html

Flat with roughly 40 square meter is about 2500 euros so that three month of min staying costs less than US$10K. Compare this $10K with your yearly CapGain and CapGainTaxRate.

If IB have lowest commission in the world, then flying to Monaco with IB account in US dollars to trade NYSE might be a best choice, in terms of taxing.
Please note that you do NOT have to live there but need to pay 3 months of rent, possibly for vacation.
 
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jk90029 said:
AT the Monaco apartment finder link at http://www.pirasimmobilier.com/en/fiches/13869-studio flat in annonciade mixte use.html

Flat with roughly 40 square meter is about 2500 euros so that three month of min staying costs less than US$10K. Compare this $10K with your yearly CapGain and CapGainTaxRate.

If IB have lowest commission, then flying to Monaco with IB account in US dollars to trade NYSE might be a best choice, in terms of taxing.
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Flat 100 sqm costs about 5.000 euro at month, so 60.000 euro a year.
Various expenses 40.000 euro a year.

So taxlevel is 10% if you make at least 1.000.000 euro a year. And this construction is completely legal.

Opening LLC's in low tax countries will be considered as tax evasion. It will be up to you to proof it is a real economical construction. It will cost you money too, and only afterwards you will see how you will be taxed in reality. If they don't accept your construction you're in for a +50% taxation.

jk90029 said:
Please note that you do NOT have to live there but need to pay 3 months of rent, possibly for vacation
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This is completely wrong!
Nobody will rent you for 3 months. By law you should have a lease for at least 12 months.
You need to ask a domicile in Monaco. You will never receive it for 3 months only.
You will have to go to the police for an interview.
You will need a number of insurances (social security, health...), change driver's licence, register your car in Monaco.....
It is explicitly mentioned that you have to live there at least 3 months a year.
The three months required amount of time to be spent in Monaco each year does not have to be in one block.
When the carte de sejour is due for renewal, the resident needs to produce the most recent 4 months electricity bills, a new bank letter (attestation) is required, with a copy of the valid property lease, the expiring carte de sejour and a new set of residency renewal forms needs to be completed.
So it is not just "take a 3 months holiday in Monaco"!!!

Check professional people, don't use internet based information!!!!
 
Since my info is based on 10 min quick search in internet, [nobody] might have better idea than me.

Possibly Monaco has huge real estate tax (with no income tax) so that rent is unbelievably high.

Monaco map shows me that you can walk within an hour, for the entire country trip. Probably you do not need a car but bike(?)

Also better to learn French a little bit before flying to Nice airport in France, close to Monaco.
 
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i am nobody said:
Not entirely correct. The rates you give is corporate taxation. If you want to take the money out of the company to spent it you will pay again taxes between 5% and 25% depending on the country. So the level of taxation will be much higher.
You also have the cost of the administration of the company. In Europe you will have to proof that there is a real management in the country of low taxation, so you need people working for you, which will cost again, or you should move there, which will cost you again.
If you make over 1 million a year the cheapest and safest solution will be Monaco and trade in your personal name. Only cost will be rent of a flat and live there 3 months a year. This construction is 100% waterproof. LLC in low tax countries is not 100% waterproof.
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Not in Estonia, you pay 20% (in 2015) on dividends received and that's that, there is no taxation on the individual side. You might have to pay min. salary to yourself which is something like €400 now, from which roughly 40% go to taxes (incl. social sec. and unemployment) but you can also get away without paying it for now.
You don't need anyone else working for you and the administration you can do online by yourself. Even if you need help with accountancy issues, that won't cost too much.
For the above, I'm speaking from my personal experience.

The same logic applies in Latvia, I haven't researched Romania or Bulgaria thoroughly but I tend to believe it works the same way.

There is nothing certain about the tax status of Monaco, none of us can really say what might happen in a few years time. Switzerland used to be "certain" as well but look at it now.
 
d08 said:
Not in Estonia, you pay 20% (in 2015) on dividends received and that's that, there is no taxation on the individual side. You might have to pay min. salary to yourself which is something like €400 now, from which roughly 40% go to taxes (incl. social sec. and unemployment) but you can also get away without paying it for now.
You don't need anyone else working for you and the administration you can do online by yourself. Even if you need help with accountancy issues, that won't cost too much.
For the above, I'm speaking from my personal experience.

The same logic applies in Latvia, I haven't researched Romania or Bulgaria thoroughly but I tend to believe it works the same way.

There is nothing certain about the tax status of Monaco, none of us can really say what might happen in a few years time. Switzerland used to be "certain" as well but look at it now.
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Before you pay 20% on dividends you have to pay first the corporate tax (21%?). Companies have to pay taxes too. So you have to add up both.
21% corporate tax and then 20% on dividends. So total taxes will be 36.8% plus social security.
About the incertainty of Monaco. You have incertainty everywhere if taxes are low. Even in Latvia, Romania and Bulgaria. Even in high taxed countries you are not sure about taxation next year.

About doing the administration yourself. If you create a LLC in a taxheaven but stay and live where you live normally, so not in this taxheaven, then you will be taxed in the country you live in and not in the taxheaven. Reason is that the LLLC is managed by you from another (higher taxed) country, which is taxevasion. In reality the company is managed from in Germany, so the only reason for going to Latvia was taxes. This is a general rule in almost all of Europe. If they tax you the rule is that you should prove they are wrong. They don't have to proof anything, they just tax you and then it is up to you.
So if you live for example in Germany and have a Latvian company that you manage from your home in Germany, you will be taxed in Germany on the profits from this Latvian company. Unless you can hide that you own this Latvian company. But then you cannot use this profits as official money.
 
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For as far as I know the taxation in Switzerland did not change. People who have problems now with Swizerland are people who did not declare their money in their own country. Corporate and income taxes did not change.
 
In some sense, better to pay CapGainTax 5% than nothing, since he can show his tax record as official gov-stamped paper, in the future to other country.

No CapGainTax means no gov-stamped paper, isn't it?

Followed by hypothetical example above, let us assume that we have a seed of $100K and annually compounded 20% profit before tax (after commission)

A) In the CapGainTax free country, you will have 100*1.2^50 = 910043.8 = 910M over 50 years later.

B) In the 5% of CapGainTax country, you wealth will be 100*1.19^50 = 598891.4 = 600M after 50 years.
 
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Who cares about not paying a bit of tax when you consider who runs Monaco. The Russian Mafia own it and if you value your kneecaps you don't dare dispute it.
East west homes best imho and sod the tax.
 
Humpy said:
Who cares about not paying a bit of tax when you consider who runs Monaco. The Russian Mafia own it and if you value your kneecaps you don't dare dispute it.
East west homes best imho and sod the tax.
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For me 50.5% taxes ( that's what I should pay) is not A BIT OF TAX. At least not for me. The government would be the biggest shareholder in my profits, without doing anything but collecting money.
 
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