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The people who flee tend to be ultra-wealthy, and many of them are seeking to reduce their tax burden. New tax and estate measures proposed by the Biden administration could, if implemented, accelerate this trend.
Only the U.S. and Eritrea tax people based on citizenship rather than residency. For most countries, if you are a citizen but don’t reside there, you aren’t taxed in that country.
For anyone curious, the IRS makes the process of renouncing American citizenship hard and unappealing... here's the process:
Many traders also choose to relocate to lower cost of living countries with lower taxes. For example, Singapore does not have a capital gains tax, so your wealth can compound tax free.
For active trading, you can live anywhere in the world (even with poor internet connection), and run your trading software over our Chicago co-located servers. You'll be <1-2ms away from order servers, significantly reducing execution times, as well as the risks of multiple points of failure without having to have a major investment in hardware and infrastructure. You can live in Singapore, but trade as if you're in the CME aurora datacenter!
https://www.axios.com/wealthy-peopl...hip-67fbada4-e2e4-4699-b106-c986839f209d.html
Only the U.S. and Eritrea tax people based on citizenship rather than residency. For most countries, if you are a citizen but don’t reside there, you aren’t taxed in that country.
For anyone curious, the IRS makes the process of renouncing American citizenship hard and unappealing... here's the process:
- There is renunciation fee that has to be paid and currently stands at $2,350 (the highest in the world). https://www.expatnetwork.com/how-to-renounce-us-citizenship-the-costs-and-implications/
- A final tax return will still need to be filed.
- An Expatriation tax is payable if [..] Your net worth is $2 million or more on the date of your expatriation. you will be treated as having disposed of your assets the day before your expatriation and will be subject to capital gains tax.
- The highest capital gains tax bracket in the USA is 20% (https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates)
Many traders also choose to relocate to lower cost of living countries with lower taxes. For example, Singapore does not have a capital gains tax, so your wealth can compound tax free.
For active trading, you can live anywhere in the world (even with poor internet connection), and run your trading software over our Chicago co-located servers. You'll be <1-2ms away from order servers, significantly reducing execution times, as well as the risks of multiple points of failure without having to have a major investment in hardware and infrastructure. You can live in Singapore, but trade as if you're in the CME aurora datacenter!
https://www.axios.com/wealthy-peopl...hip-67fbada4-e2e4-4699-b106-c986839f209d.html
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