Great No Swiss Broker's at all. W
where would one go then? Plus without getting killed with commision fees?
where would one go then? Plus without getting killed with commision fees?
Offshore Brokerage Firms
- Thread starter UnderGround
- Start date
try this out. i am considering using them.
http://www.panama-offshore-services.com/
http://www.panama-offshore-services.com/
I think you have to live offshore and trade with an American brokerage. Swiss brokers are all associated with banks and they charge HUGE commisions. Usually a percentage of the total trade. Another thing most don't allow shorting. I have a friend who lost loads of money when he couldn't contact anyone over there because of the time zone to get out of a large position.
Does an American have to pay capital gains taxes to the IRS even if he sets up an offshore account?
Then what is the purpose of companies like panama offshore services if you still have to pay income taxes?
MADISON is absolutely right. You don't have to be a tax expert to know this. There are some legitimate reasons for anybody (who is otherwise subject to US taxes) to move certain assets etc offshore, or open accounts there. Moving your trading account is certainly not one of these reasons. Though it is a free country and you have the right to open foreign brokerage accounts - you still have to pay the usual taxes to the IRS.
And one more thing: don't trust with your money those no-name bs "brokerages". Stick with a big one. But then why bother at all?
Just my $0.02
"I'm not a tax expert, but afaik, a US citizen is liable for income taxes on all worldwide income, no matter where or how derived, where he resides, or where the income is invested (there is a foreign income credit for part of the income earned by non-US residents, I believe)"
And one more thing: don't trust with your money those no-name bs "brokerages". Stick with a big one. But then why bother at all?
Just my $0.02
"I'm not a tax expert, but afaik, a US citizen is liable for income taxes on all worldwide income, no matter where or how derived, where he resides, or where the income is invested (there is a foreign income credit for part of the income earned by non-US residents, I believe)"
I have done a little research into this kind of stuff.
Offshore companies exist mostly to gain wealthy US customers primarily concerned with the risk of litigation, which is an increasing cost of doing business in both the USA and now the UK. People (spouses, customers, staff) will sue over anything!
They can also take customers from other parts of the world. For example if you want to be fully free of the IRS shackles (legally, mind!) you would have to renounce your US citizenship and live abroad which is pretty final. The US government does not recognise dual nationality (especially NOT for tax purposes!).
Things are a little different in the UK. Basically if you are going to be away for 5 years or more you no longer have to report any non UK income. You dont lose your citizenship if you want to come back after 5 years.
Probably some of their biggest customers though are the many rich arabs we have in London. They come here to gain "non-domicile" status. This basically means that you can send all your earnings abroad and only pay tax on what you bring into the country to live on. You are therefore building up a huge offshore tax-free nest egg. Hence the need for companies like Panama. The bad news (for me anyway!) is that this only applies to people who do not have UK citizenship. For the rest of us, and for ordinary Americans too, offshore anything is probably pretty much a waste of time.
On the plus side you will not get a better deal for brokerage service outside the States. Trust me, the grass is greener your side - us foreigners come to YOU for the best deals!!!
Offshore companies exist mostly to gain wealthy US customers primarily concerned with the risk of litigation, which is an increasing cost of doing business in both the USA and now the UK. People (spouses, customers, staff) will sue over anything!
They can also take customers from other parts of the world. For example if you want to be fully free of the IRS shackles (legally, mind!) you would have to renounce your US citizenship and live abroad which is pretty final. The US government does not recognise dual nationality (especially NOT for tax purposes!).
Things are a little different in the UK. Basically if you are going to be away for 5 years or more you no longer have to report any non UK income. You dont lose your citizenship if you want to come back after 5 years.
Probably some of their biggest customers though are the many rich arabs we have in London. They come here to gain "non-domicile" status. This basically means that you can send all your earnings abroad and only pay tax on what you bring into the country to live on. You are therefore building up a huge offshore tax-free nest egg. Hence the need for companies like Panama. The bad news (for me anyway!) is that this only applies to people who do not have UK citizenship. For the rest of us, and for ordinary Americans too, offshore anything is probably pretty much a waste of time.
On the plus side you will not get a better deal for brokerage service outside the States. Trust me, the grass is greener your side - us foreigners come to YOU for the best deals!!!