Trading Stocks? Lower Your Tax to Zero

[@ericeverson5956]

Micheal, what would be the reason you didn't mention Uruguay for day traders? They have a 10 year tax forgiveness plan. After that it is a flat 12%. If you still hold a US passport, they have a tax treaty that lets you pay say 20% US tax & then forgives the 12% in Uruguay tax. So basically, anything over 12% you do not pay any tax in Uruguay.

[@nitetrekker]

Good tip, thanks!

[@ericeverson5956]

@@nitetrekker No problem, Sir. Very easy to get into if & when the beer flu gets over with.

[@lucasfootball637]

Correct. Uruguay is an extremely tax friendly place for foreigners and a very nice (and calm) place to live. In general I've noticed Michael areas of expertise are Asia, Europe and North America. Latin America (and especially South America) is not very much on his radar.

[@LangChainAI]

​@@lucasfootball637 I think LatAm is not much on anyones radar. Beside caribia

[@SamKH202]

appreciate this video, Michael! further great advice beyond the call we had a couple of weeks ago.

[@robertfuller1637]

How much does it cost to setup and maintain the foreign trust administration for tax free trading purposes?

[@MichaelRosmer]

Depends how much the trustees need to do but it would be normal to spend $15k setting it up and $5k - $25k/yr maintaining it.

[@gopherlee9427]

Namibia has no personal capital gains tax. They do not differentiate between long term and short term.

[@malthus101]

yeah great if you like living in a massive sand dune!

[@FrozenSkyy]

Great video Mike!

[@fredriksmedberg421]

Sweden. ISK (investment account, investeringssparkonto) and Capital Insurance (Kapitalförsäkring) can correctly used mean 0% or close to 0% tax for day traders.

[@dpauner]

Im pretty sure Greece has 0% capital gains from stocks if you own less than 0,5% of the company

[@JohnnyGaddaar]

What about Singapore?

[@Gorilladome4664]

Hello, thank you for the video. RE a previous question involving becoming a tax resident of Thailand and trading through HK, resulting in tax free as per territorial tax in Thailand.....you said in ur answer that it would be a bit more complicated, but yes.....what if you had a wealth manager in HK manage your account and you performed no trading...so the mind of the business would truly be in HK? Then would that be a slam dunk yes as only remitted income into Thailand would be taxed etc...big thanx!

[@chrisradcliffe321]

Great video. Could a UK individual doing frequent trading(e.g. stocks, ETFs, crryptos, etc) move to Bulgaria for living, but be resident for tax purposes in UAE (e.g. going to UAE for a few days every 6 months, having bank account there, etc)? Does the dual taxation treaty between Bulgaria and UAE allow you to pay 0 tax as a Dubai resident ? Such a setup could provide dual safety in case of a tax dispute between Bulgaria and UAE, in which scenario, only 10% would be owed in Bulgaria at most. Seems like you also reside in UAE and Bulgaria most of the time, so what are your thoughts on this solution? Thank you! Btw, many UK people like Bulgaria and UAE and dual treaties between UK and these two countries allow to not pay tax in UK as long as you are over 183 days away (superseding UK residency test, after a UK split year in the year of move). Perhaps a great topic for one of your next amazing videos.

[@donitod5799]

Fantastic content Mike, very helpful keep up the great work!!! Chris has highlighted a good option, I am also interested in, what are your briefly thoughts on how to best achieve that ?

[@MichaelRosmer]

If you're actually living in Bulgaria you'll be tax resident in Bulgaria regardless of whether you've registered as a resident in UAE. To avoid tax in Bulgaria you'd need to be sufficiently resident abroad not to be taxable in Bulgaria this would mean less than 183 days per year in Bulgaria and not making it your center of vital interests. Now, Bulgaria isn't very on the ball where enforcement is concerned so you'd probably get away with it but it wouldn't be legal under review.

[@dimitrivancamp1013]

Why did you not mention Cyprus? They don't tax stock market profits at all, even from an active trader. Of course you have to want to live there..

[@francescov6132]

are you. sure? i believe there is level of tax in there s well. you can get a decent deal with the non dom residency but am not sure about 0 tax

[@infiltr80r]

@@francescov6132 You're liable for the 2.65% tax on GESY (NHS) but nothing else based on what I've understood.

[@b4bmm]

Is Poland and Holland any good for share investing/trading, I never hear these countries mentioned in any of the videos for anything!! I loved Poland when I was there a couple years ago

[@MichaelRosmer]

Mostly terrible for tax. Netherlands has a couple things that are ok in very specific cases but generally not exciting, though Poland is improving slightly.

[@gu3sswh075]

Stop voting liberal, and you’ll have more business-friendly taxes

[@dbcooper226]

Why not become a resident of Panama using the friendly nations visa? And then there's no tax on foreign income, inlcuding foreign trading accounts

[@thatswhatshesaidbro]

Foreign stock trading accounts ? Is that forsure ? Does it apply to all territorial tax countries like Costa Rica or just Panama ?

[@amostofi1999]

Can't you start a company in UAE and work for it as a trader while living in Malayisa? This way, your income is taxed in Msia, but the return made on the investments in the company are foreign income and not taxable in Malaysia.

[@OffshoreCitizen]

Risky, if it's just you the income could be considered attributable to you and the company could also be considered tax resident in Malaysia. You might get away with it but technically it's subject to tax.

[@holeefuk8505]

If trading through a personal account territorial tax countries (Malaysia & Georgia) for example should be tax free? Both countries dont tax capital gains off shares (personal income) and if your brokers are all overseas its considered foreign income anyway. Armenia also no cap gains but residential taxation but foreign earned income not strongly enforced tax wise. Seems overly complicated to run it through corporate structure, especially if you trade less frequently/hold longer. (then possibly Long term Cap gains come into effect). From what i've read in general most countries tend to be relatively more relaxed when it comes to capital gains taxes from shares. Probably something to do with trying to attract liquidity from overseas. Also in Malaysia unless you work for a broker/finance line theres no hard and fast rule of what tax dept determines to be a "trader" at least for a citizen anyway

[@dlukton]

There's a potential issue with (a) being a resident of a territorial tax country, (b) being an active stock trader, and (c) running your trades through an offshore corporation. The government of the country is going to receive the tax information from the brokerage firm, and they may figure out that you're doing all that work while physically present in their country; they may argue that it isn't "foreign-sourced" income.

[@MichaelRosmer]

It's not accurate that the location of the broker makes it "offshore" for territorial tax countries. The location of the broker generally doesn't matter at all. And yes, if using a corporate structure is overly complex if you can get the same tax treatment without it but often you can't.

[@holeefuk8505]

@@MichaelRosmer And the exchanges one trades invests on? Kind of a stretch for a territorial tax govt to say that stocks traded on foreign exchange are considered locally sourced income as well. Yeah with more thought into the subject i realized that in order to take advantage of tax system in Malaysia for foreigners you probably will need a corporate structure that complicates things. As a citizen doing things as an individual it can be alot simpler

[@dlukton]

@@holeefuk8505 "Kind of a stretch for a territorial tax govt to say that stocks traded on foreign exchange are considered locally sourced income as well". As I posted in my earlier comment, the brokerage firm is going to send the tax information to the government of your host country; the tax authorities there will be able to see every trade you made; and it'll be clear to them (if you're a highly active trader) that you are working at a full-time job (i.e., trading) while physically present in their country. As such, they could reasonably argue that the income that you've generated.... through your labors.... is not "foreign sourced", and that it should be taxed as LOCAL income. (The rules will vary of course from one country to another).

[@gu3sswh075]

It depends on where you are a tax resident. For most countries you need to stay for 6 months + 1 day, Switzerland is 1 month if you’re working there or 3 months if you’re not working there, US taxes you regardless only where you live. Most countries will be after 6 months of living but you need to check. Just DONT become a tax resident in the country you live. Also, just because you spend less then 6 months, they might look at your most viste country. Again, every country is different

[@ControlTheGuh]

Most brokers reject IBC from the Islands unfort.. Appreciate the video though

[@MichaelRosmer]

Really depends on the broker and the island and set up.

[@pauljacobs710]

So if I (Australian) move to Thailand on a Thai elite visa and become resident there and trade global stocks through a HK company - would that be tax free from a Thai/Territorial perspective?

[@OffshoreCitizen]

It's a, little more complex than that but yes possibly

[@pauljacobs710]

@@OffshoreCitizen Appreciate your reply - I'll likely be in touch soon.

[@sandeepchakraborty9899]

Michael...what would be your thoughts about Mauritius, like forming an IBC1 company for trading the US capital market and crypto markets, with two resident directors for making use of tax treaties. The residence permit for two directors can be obtained with the company formation. Where the traders/directors are willing to spend most of the time in the Island And then using the Non Dom feature to get an effective tax rate of 3%. Since dividends paid to residents are also tax free, so payouts can be in form of tax free dividends.

[@OffshoreCitizen]

Depends, could be fine but it's very circumstances specific so we'd need to go over it. If you want we can discuss.

[@nickstyles2943]

I am a day trader based in the UK. Instead of incorporating onshore and paying the 19% corporation tax rate, could i incorporate offshore in a zero ten jurisdiction and make myself an employee and pay myself a £50k salary and leave the rest of the profits in the company? Many thanks

[@OffshoreCitizen]

Not typically no it requires much more than that

[@nickstyles2943]

@@OffshoreCitizen Interesting, in theory it sounded straight forward. Thankful for seeing your video before pulling the trigger on forming offshore.

[@gu3sswh075]

@@nickstyles2943 don’t you have access to the British Overseas Territories. Doesn’t the queen put all her money in Cayman Islands?

[@MichaelRosmer]

@@nickstyles2943 yeah I talk a lot about this that if it was so easy everyone would do it. What you need to worry about are management and control rules, source income rules, and CFC rules.

[@AIRfree]

Can’t you just open the company and do day trading as a business ? Why would you need to incorporate a Trust also? I don’t get it! Could you please provide an explanation.. ? Thank you!

[@OffshoreCitizen]

It has to do with the combination of source income rules, corporate residency rules and CFC rules. If it was so easy everyone would do it, no one would pay tax and tax departments would be out of business. They have rules against most of the simple solutions you might think of.

[@AIRfree]

@@OffshoreCitizen Thank you, Michael! I appreciate your reply!

[@petertulala2543]

Switzerland 🇨🇭with 0% capital gain tax might be also an interesting option for long-term investors. There is a wealth tax on assets over CHF 200’000, but it’s just 0.2%.

[@AVAM..]

In Switzerland if your trading income is more then your job income. Then they threat you as professional trader and your trading is threated as a business and is subject to corporate tax...

[@petertulala2543]

​@@AVAM.. It's not so straight-forward. The law does not define who a "professional trader" actually is, it only defines who is "NOT a professional". There 5 rules (one of them is: income > capital gains) and if all these 5 rules are followed, you won't be treated as a professional. In practice, at least 2 or 3 rules out of these 5 must be broken to be marked as a professional by the tax authority, but it's on a case by case basis. Anyway, even if you are marked as a professional trader, if your annual income is at least CHF 400'000, you can switch to a lump-sum taxation and pay just a fixed amount of tax instead of a percentage from the income.

[@gu3sswh075]

@@petertulala2543 I don’t think it works that way. From my research I found that that if start off as lump sum tax and switch back to normal tax rates, you CAN’T switch back. Also, you are not allowed to have been a tax resident in Switzerland for the past 10 years (can’t live there) in order to be eligible. So, no. Not open for locals from I know

[@gu3sswh075]

@@petertulala2543 you’re also not allowed to make money in Switzerland when you are doing lump sum tax. All your money has to come from outside the country.

[@nineseven420empire3]

HSA, IRA, 401K, ect.

[@ThomasTomiczek]

Yeah, because you can so much use those to make a living. Anything tax deferred or meant for retirement means - no.

[@nineseven420empire3]

@@ThomasTomiczek There are LOTS of ways to get around paying taxes. Try not to limit yourself needlessly. My retirement accounts make me more $$ than my job does. I have control over when and how much $$ I take out of each account. ect. ect. blaaa blaaa blaaa.........

[@STEVESIMMONS-rd8fo]

As a Canadian trader could I move to the UAE to trade U.S. and Canadian stocks and options and pay 0 Income Taxes? Would I need to become a resident in the UAE a become a non resident of Canada , close my Canadian Brokerage Accounts and open the Brokerage Accounts in the UAE? Also does the UAE have Brokerages that offer trading of stocks and options from the Canadian and US stock markets? Thank you in advance!

[@OffshoreCitizen]

Yes and yes Please send us a message through www.offshorecitizen.net to discuss details

[@absolutrudy]

What I don’t understand is if u are an individual trader let’s say from the USA as example and your living in say UAE your still beholden to pay the capital gains to the USA. So not sure I’m clear on what u are suggesting... open up a uae Corp, trade the USA market on belhalf of that Corp as a contractor or employee and then pay yourself a salary/fee from that Corp and then pay the taxes in the uae? But your income your paying yourself from that Corp will still be beholden to USA. So a bit confused on how you are describing these scenarios in your vid.

[@absolutrudy]

@Offshore Citizen you gotta do better with your bots on your replies. This reply just shows your not really taking the time to actually read your responses. Luv your content but u need better engagement than an auto responser to invest in crypto and to contact u.

[@OffshoreCitizen]

This is some spam account, and not any of our team members. Responses from us will be highlighted differently. Michael also responds from his personal account sometimes.

[@gu3sswh075]

You would need to become tax resident in uae in this case. In Anguilla I believe you only need to stay for 45 days to become tax resident and you can’t spend more than 6 months (can’t be a tax resident) anywhere else. Realistically you’ll have to live in 3 countries or 2 assuming you spend half or more in Anguilla

[@MichaelRosmer]

@@gu3sswh075 not sure how we got into Anguilla but there's a few things that are important to note here: 1. There's a difference between the residency of the company and the residency of the individual 2. It's more important where you're NOT resident than where you are resident 3. Americans can't escape US rules by moving out of the US though legal structures can at least for the moment benefit to some extent from different rules

[@LangChainAI]

Why not talk about Germany ??😂 1% tax on Stock for Businesses abd very high travel per dime tax free payments. Also nice country

[@dimebagg1]

UAE for the WIN. It’s the answer to all of the world’s financial problems.

[@thatswhatshesaidbro]

Ya but what about time zone issues that’s the problem