Successful traders: why don't you move to a 0% capital gains tax country?

[luisHK]

Do you mean you are having problem because you used to live in the US and have a ss number ?
I'm not familiar with this situation so you might be right.
But as a South Korean resident what you need to register with an american broker should be a valid South Korean utility bill, not a US one. Than you would pay the cap gain tax, if any, to the South Korean government, no matter which market you trade (Korean, US, European or HK)

Check interactivebrokers, you can go through their online registration, they are a very good fit for international traders, and offer US ande HK equity markets as well as south korean futures, as well as several more markets:

https://www.interactivebrokers.com/en/main.php

 

[jk90029]

Professional traders seems to profit from low tax structures if not tax free.
A set up mentioned here a couple of times for europeans is trading through a luxembourg investment fund, it works almost tax free for belgium residents, not sure about swiss residents.

By "Belgian resident", what do you mean?

I do NOT think they require Belgian citizenship. But they may ask Driver License or Rental agreeement or utility bill, in the sense that those who want to make capital gain in Belgium, he should pay residing expense (monthly rent). / Of course, if he makes more balance in profit AFTER PAYING RENT in Belgium, then he can go to Belgium JUST FOR LOW TAX REASON.

Also he may spend most time in US with friend and family, leaving a vacant room in Belgium. It cannot be done without the INTERNET even 20 years ago. I do NOT think Belgium authority will check his IP address to make sure his presense in Belgium soil.

See a big coperation Nike. I heard they moved headquarter to Iceland, since Iceland charges a lot less tax than US.
It is probably country in bad situation SHOULD attract (hook) big company, for low tax. Even with low tax rate in Iceland, Iceland make a lot more of tax from Nike, than before moving to Iceland.

 

[jk90029]

Do you mean you are having problem because you used to live in the US and have a ss number ?
I'm not familiar with this situation so you might be right.
But as a South Korean resident what you need to register with an american broker should be a valid South Korean utility bill, not a US one. Than you would pay the cap gain tax, if any, to the South Korean government, no matter which market you trade (Korean, US, European or HK)

Check interactivebrokers, you can go through their online registration, they are a very good fit for international traders, and offer US ande HK equity markets as well as south korean futures, as well as several more markets:

https://www.interactivebrokers.com/en/main.php

For the "you would pay the cap gain tax, if any, to the South Korean government", of course I aware no trading tax and annual FIXED capital tax 22% to Korean IRS, if I trade US stock using US brokerage. If IB offers Korean equity trading such as SamSungElectronics, I will be glad to open. Note that I NEVER trade and even NEVER open any account for any FUTURE/OPTION in any country.

If I pay 22% cap gain tax rate to Korea IRS, it is still lower than the current record in the past five years. Is there any US brokerage which allow SSElec trading, with symbol "KR-005930"? If so, it will provide real time intraday data too. / I heard that the some company like http://www.interactivedata.com/index.php/ provide SSElec intraday data, with monthly fee.(long contract)

 

[Pekelo]

this Thread is being highjacked with constant references to 3rd world countries...

Your response didn't really address my point. There is way more to moving to abroad than just less taxation. For one, most people have family and friends whom he most likely likes to be around, not 3000 miles away. Second, if the trader has kids, that multiplies the above reason, not to mention adequate schooling.

OP could have asked: Hey New Yorkers, why don't you just move to rural Kansas and save a shitton of money? Some people actually like big cities and all that jazz...

After all if you lower your expenses you can afford to pay your taxes...

 

[luisHK]

Your response didn't really address my point. There is way more to moving to abroad than just less taxation. For one, most people have family and friends whom he most likely likes to be around, not 3000 miles away. Second, if the trader has kids, that multiplies the above reason, not to mention adequate schooling.

Definitely points to consider - and issues I have experience with, which I and others adressed earlier in this thread.
Still your reply before was mostly cheap flame and where is home anyway gets quite complicated when you talk about international families.
Again - as you mention - for many moving abroad depends on more than saving on taxes, although less taxes sure makes a destination more attractive, and brings one closer to financial freedom/independance.

 

[dealmaker]

Your response didn't really address my point. There is way more to moving to abroad than just less taxation. For one, most people have family and friends whom he most likely likes to be around, not 3000 miles away. Second, if the trader has kids, that multiplies the above reason, not to mention adequate schooling.

OP could have asked: Hey New Yorkers, why don't you just move to rural Kansas and save a shitton of money? Some people actually like big cities and all that jazz...

After all if you lower your expenses you can afford to pay your taxes...

I can understand the family argument but when it comes to personal safety and schools, US is nothing to brag about. US schools rank 17th in science and 23rd in math i.e. US will be in bottom half in Europe and behind Japan, Korea, Singapore, Hong Kong and China in Asia and in personal safety I am certain all of Europe most of Asia is ahead of US. Don't think all of US as rural Kansas, think also of Oakland, Detroit etc...
And OP did not say move to third World he/she said move to a lower tax area, here are some examples of 0 income tax places in the 1st World : Monaco, Jersey, Guernsey, Island of Man, Andorra etc...

 

[Pekelo]

Definitely points to consider

Other money saving tips:

1. Don't get married, unless your wife is earning close to as much as you.
2. Don't have children. Big savings...
3. Don't buy any luxury items.
4. Use coupons..

etc.etc.

My point is there are so many other ways to save money beside abandoning your homeland, and the cheapest living/taxing country is not necessary the best....

And OP did not say move to third World he/she said move to a lower tax area, here are some examples of 0 income tax places in the 1st World : Monaco, Jersey, Guernsey, Island of Man, Andorra etc...

For US citizens it is world wide income, so moving to those places doesn't solve the tax problem. In Monaco you have to own real estate IIRC.

Again, cheapest living =/= best living.

 

[luisHK]

Other money saving tips:

1. Don't get married, unless your wife is earning close to as much as you.

2. Don't have children. Big savings...

3. Don't buy any luxury items.

4. Use coupons..

etc.etc.

My point is there are so many other ways to save money beside abandoning your homeland, and the cheapest living/taxing country is not necessary the best....

why don't you just sum up your tips with :

Why try to have a life when you can survive miserably ?

And own's homeland is not necessarily the best land either, it's actually unlikely to be.

 

[smallStops]

Actually WHY not live LARGE at a cost effective price?
May be we could start a thread : living LARGE and well at a very effective cost.

 

[luisHK]

Actually WHY not live LARGE at a cost effective price?
May be we could start a thread : living LARGE and well at a very effective cost.

Well if you are enjoying significant income , lowering your tax rate is an efficient way to living larger for cheaper.