Tax Residency for non-U.S.

in most OECD tax treaties this problem is solved in this matter:
if it is not possible to find out where your primary residence was, you pay tax in your home country(passport).

BUT:

germany has NO tax treaty with Bahamas Singapore (not shure about Hongkong) , = tax heaven = special cases


you cant ask so complex questions without beeing more concrete;
 
in your example you report your taxes to german gvt(assuming you have us brokerage account and w8 filled).i have no idea about german tax law,but if you claim yourself as bona fide person and they are by german law are exempt-then in your return you must provide supporting documents.
 
Thank you. This is pretty helpful.

The conundrum is that if I get more concrete I get a bunch of replies on German tax laws. And less concrete; replies that every situation is different.

Basically, what if a non-U.S. trader doesn't qualify as a resident anywhere? The OECD covers most of the developed countries people on this forum would be from, so that's a pretty good answer.

Also I'm curious to see if there are any (non-U.S.) traders with no permanent residence and how their taxes are legally handled.

Quote from moarla:

in most OECD tax treaties this problem is solved in this matter:
if it is not possible to find out where your primary residence was, you pay tax in your home country(passport).

BUT:

germany has NO tax treaty with Bahamas Singapore (not shure about Hongkong) , = tax heaven = special cases


you cant ask so complex questions without beeing more concrete;
More...
 
Expat taxation for the UK is decided by 3 factors. Where you are Domiciled, resident and ordinarily resident.

Domicile is decided by tests like what possessions you own in the UK, where you intend to be buried, which family members are in the UK (wife, kids) etc.

Residency is decided by how long you are in or out of the country and what your long term plans are.

Bilateral tax treaties only apply if you are working abroad for less than one year.

If you are out of the country for an extended period there are no taxes to be paid to the UK so go to the lowest tax zone you enjoy to trade from.

Each country is different and it is not the tax treaties that determine what happens unless you are an international (expat) employee. Rather it is your passport issuing revenue authorities so ask them.

Generally, unless you are from the US you can do a lot to reduce your tax liability. If you are clever you don't need to move every 90 days.
 
Quote from rbartell:

Thank you. This is pretty helpful.

The conundrum is that if I get more concrete I get a bunch of replies on German tax laws. And less concrete; replies that every situation is different.

Basically, what if a non-U.S. trader doesn't qualify as a resident anywhere? The OECD covers most of the developed countries people on this forum would be from, so that's a pretty good answer.

Also I'm curious to see if there are any (non-U.S.) traders with no permanent residence and how their taxes are legally handled.
More...
if you don't qualify as a resident anywhere, and you're a citizen of a country that taxes based on residency (most of the world), then you don't pay taxes anywhere. your plan is a good one. the main thing you have to watch for is each countries residency laws. for some it's 6 months in a year, some it's 6 months in a 2 year period, etc. just make sure wherever you go you know the rules. i can tell you though from experience, that this is probably the least complicated way of reducing your tax exposure. great if you're young and mobile, becomes a lot tougher if you're older with family. everything's easy with enough money though. good luck.
 
yes if germany dosent have worldwide taxation u pay no tax as normal residency rules for tax purposes requires u to live in 1 year in a single country for more than 183 days...although i think there are additional rules for 3 years as well
 
I'm trying to convince wifey not to become a U.S. citizen, its just not worth it. She wants her social security money but the way I think about it ... they'll get it all back anyway in taxes when we leave this country and finish out our lives overseas.

As far as trading, I'm going to hatch a plan to have my inlaws open a trading account and then I'll just trade under their name with their account and my money.

In the Phlippines there's only a small income tax , no FICA, no Medicare, no state taxes ... I think the rate is something like 15%, regardless of income.
 
Quote from MohdSalleh:

yes if germany dosent have worldwide taxation u pay no tax as normal residency rules for tax purposes requires u to live in 1 year in a single country for more than 183 days...although i think there are additional rules for 3 years as well
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If it is not possible to qualify a tax residency, YOU ARE TAXED in your home country (passport).
read the different tax treaties.

If you like to be tax free, you need to move your principal residence in a tax free country, and you cant go back to your passport-country more then 183 days/Year(in Germany you cant have a home anymore).
you can travel around the world with no problem.

an example:

-german citizen(passport)
-you move your residency to Switzerland (lump sum tax)
-you can stay in Spain, in Italy in USA in Argentina wherever you want as long as you dont stay in Germany.(Switzland doesnt care about where you stay)
you are taxed on your worldwide income in Switzerland (residency) and that is the lump sum tax


SAME THING POSSIBLE IN UK MALTA MONACO etc. with some little differences
 
If you like to be tax free, you need to move your principal residence in a tax free country
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how you establish you principal residence in Switzerland,if most your time you are in Spain?
 
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