Trading via own remote company in a no-tax-country

[Hittfeld]

I chose for number 3 and never regretted my choice. But I am not an American so it was easier for me to find a decent solution. I could change in 1 day my situation, no problems with the possibilities to be taxed till X years after I left my country. I even kept my nationality and can return to my native country as much as I like. I will even still receive pension later.
Paying now around 10% (all included) taxes and social security instead of about 70%. And everything 100% legal.
.........
.........

The only problem is that you should make a substantial amount of money and it should be consistent over the years.

Would you mind to give some hints regarding your solution/jurisdiction?

Thanks and congratulations for your success

 

[Hittfeld]

Yes, US is different, most other countries have sane tax rules. US is only one out of 240 or so countries in the world. Majority of people in the world does not live in US. Passport is linked to citizenship, the citizenship one can keep forever, one does not have to change citizenship and one can hold multiple ones.

It is not a sustainable lifestyle long term, but may work fine for 3-5 years or longer if one does not have employment, a family or own RE. Being able to earn large amount of money from trading while paying zero taxes is beneficial and allows one to build up ones account to millions in a shorter time. Then one can chose to move back and become a resident again.

I wonder, how this could worK: You not only need a valid passport (and proper visa), you also need a broker (opened an account with one of the major ones lately?). Brokers will ask you for history of residency, brokers will require a bank account, banks will ask for residency .........
This is not the `90s anymore.

Good luck

 

[MoneyWalks]

I and a friend, both Eurolanders, are seeking for ways on saving (ie. legally avoiding) capital gains and income taxes.
For this we want to set up a small firm (a Ltd) in a foreign country outside the EU, with no corporate and also no income taxes,
for example in Kuwait or the UAE or in similar countries with no or minimal taxes.
The earnings of the firm would come from online trading (equities & options) in international markets, mostly US markets.
The firm would be ours, albeit in the foreign country, and both would be employees of the firm
and would get paid a monthly salary in the foreign country.
Then, we think we would have no income tax obligation in our home country.
We would like to do that from home in Euroland, ie. as remote-workers of the firm.
Can this work out, or what else is necessary?
Any further tips welcome, especially if someone has already gone this route.
Thx

Hi marsman,

I would really appreciate if you can update on your progress and if you managed to find a solution to your problems. I'm also from Europe and looking into establishing an offshore company.

I'm looking forward to hear back from you.

all the best!

 

[d08]

I wonder, how this could worK: You not only need a valid passport (and proper visa), you also need a broker (opened an account with one of the major ones lately?). Brokers will ask you for history of residency, brokers will require a bank account, banks will ask for residency .........
This is not the `90s anymore.

Good luck

You're confusing legal residency with tax residency. You can legally stay in some countries for years without a permanent visa. No broker I know of asks for your visa since it's none of their business, they will ask proof of address though.
You can have a bank account in a different country as well, that won't make you a resident there.

 

[Mtrader]

You're confusing legal residency with tax residency.

Correct. You can have legal residency in country A and have tax residency in country B. Perfectly legal. Your native country is A and you try to find a country where taxation is very low. That will be country B. You start a company in country B and pay taxes there and because of double taxation treaty you will not be taxed again in country A. Only thing that is important: you should be in country B when you are trading. Otherwise you will be taxed in country A. Fake construction are useless. Brokers can even log from where you place orders. Tax people can trace your mobile phone, check use of bankcard or creditcard, check on your adress in country A if you are there or not...

You can legally stay in some countries for years without a permanent visa.

Correct. Within Schengen EU citizens can travel without any restrictions in other EU states for 3 months. As you will work parttime in country B and return to country A on a regular basis you will never go over the 3 months limit. Even staying for longer than 3 months is easy as you will work for a company that is established in country B. Receiving permission to stay longer is a small formality.

No broker I know of asks for your visa since it's none of their business, they will ask proof of address though.
You can have a bank account in a different country as well, that won't make you a resident there.

Correct.
Your company in country B will have an address that will serve for the broker as well as for the bank. Show them the documents from the registration of your company and you will have no problems.

 

[Mtrader]

What if you are a resident of nowhere? what if you are a permanent tourist, staying for 3-6 months on tourist visa and moving from country to country.

Then one is taxed 0% for income and 0% for capital gains.

I think that this is impossible nowadays. If you want to travel on tourist visa, I suppose you need a passport.

Open a bank account or get a drivers license? As residence of nowhere? Impossible.

What with FATCA? I have various bank accounts, personally and in companies in different countries in Europe. I have to proof for each account that I am not American. Just read what the banks, all over the world, are obliged to confirm to the US. Banks ask copy of ID cards as proof of nationality. What will you show? An ID card from nowhere land?