Monaco with NO income tax / what else country?

[Humpy]

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.

Don't worry your tax is going to support some political half wit to spend. More champers anyone ?

 

[jk90029]

On the other hand, it depend on his situation

A) If his age is 30 and confident to live until 80, for the next 50 years
With seed of 100K and annual 20%, it will grow to 100*1.2^50 = 910043.8 = 910M.

B) if his age is 50 and expect to live 20 more years.
With seed of 100K and annual 20%, it will grow to 100*1.2^20 = 3833.76 = 3.8M.

There is lot of difference.

 

[luisHK]

Jk how do u expect to pay for your living expenses ? You would have a hard time earning enough to live on 100k, let alone compound all your profits - except if u have other sources of income, or are supported financially.
again i'm surprised 300k to 1mil in a bank acct is enough to get residence permit in Monaco- except for the french i don't see why so many europeans move to Switzerland where the cost of living is not lower but the taxes much higher - and the tax lump sums deals in Switerland are about to get worse.
Note that UK is more popular nowadays than Switzerland for high net worth individuals looking for sweet tax deals

 

[jk90029]

Jk how do u expect to pay for your living expenses ? You would have a hard time earning enough to live on 100k, let alone compound all your profits - except if u have other sources of income, or are supported financially.

Of course, it is an issue. Suppose one need expense of 30K per year, he should have payroll income or other source of income. If anyone with no working job have a trading logic of annual 20% profit, then his seed of 150K is for supporting his living expense of 30K every year, and the rest amount after the 150K subtracting will grow (real finincial asset) as much as exponentially 20%, for the 50 years. Note that this place in EliteTrader is named as "Trading for a living"

My main point is "Capitalism is based on compounding and tax issue", not "I can live with no food". Hypo example with 100K is just for explanation of compounding only.

 

[Humpy]

A lot of Eastern Europeans and other foreigners are buying property in the UK now especially in/around London to get their money out of their own countries.

 

[i am nobody]

Note that UK is more popular nowadays than Switzerland for high net worth individuals looking for sweet tax deals

Where can we find information on these sweet deals?

 

[d08]

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.

Not in Estonia, there is no corporate tax. From what I read, it's similar in Latvia, you pay only once which makes perfect sense - no capgains, no dividend tax, just the 15% on corp. income. It's quite perverse that this double form of taxation (corporate + dividends) has become norm in many places, completely illogical and just pure bureaucratic greed.

As a trader he wouldn't have issues moving to this place 6 months a year, even in Monaco - he HAS to stay there 3 months per year (as mentioned).

 

[d08]

At the link http://en.wikipedia.org/wiki/List_of_countries_by_tax_rates

you can see the highest tax bracket in US, as 55.9% (max of federal+state+local) 10%-39.6% (federal)[122] +
0%-13.3% (state)[123] +
0%-3% (local)

and UK 45%+Sweden 57%+Norway 47% + Dutch 52% + Finland + Japan + Canada + Belgium

You can't make decisions on taxation based on a Wikipedia article. There are special cases depending whether your income is local, whether you also work in the country or in a neighboring country, whether you were born there etc. Taxation isn't as simple as just looking at percentages.

 

[d08]

A lot of Eastern Europeans and other foreigners are buying property in the UK now especially in/around London to get their money out of their own countries.

Let's be honest, they're either Middle Eastern oil kids or Russian Jews who had a disagreement with Putin. They're buying because the UK RE boom is still continuing (for Arabs) or to get protection from Putin.

 

[i am nobody]

As a trader he wouldn't have issues moving to this place 6 months a year, even in Monaco - he HAS to stay there 3 months per year (as mentioned).

In most European countries Monaco is only accepted if you're domiciliated in Monaco. I know people who had (bad) experiences with it. Just go on holiday there is not working. The 183 days rule (6 months) only counts for people who work as employee (and under specific conditions), not as independant trader.
Maybe interpretation varies depending on the fiscal administration of each country.