Best Country for Trading (Tax efficiency)

i am nobody · Jul 3, 2015

Peternam said:
15% also when trading is your only income ?
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Bulgaria 10% no matter what you trade.
Check also obligatory social security and health insurance contributions which may apply in some countries. In Bulgaria 12,90% on max 1329,36 euro/month income. So max is 171,49 euro/month social security.
Maybe we can start a village in Bulgaria, only for traders.

http://www.kik-bg.com/en/payroll-calculators/payroll-calculator-gross-to-net.php

Peternam · Jul 3, 2015

i am nobody said:
Bulgaria 10% no matter what you trade.
Check also obligatory social security and health insurance contributions which may apply in some countries. In Bulgaria 12,90% on max 1329,36 euro/month income. So max is 171,49 euro/month social security.
Maybe we can start a village in Bulgaria, only for traders.

http://www.kik-bg.com/en/payroll-calculators/payroll-calculator-gross-to-net.php
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it was regarding to Czech ?

i am nobody · Jul 4, 2015

Peternam said:
it was regarding to Czech ?
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No, I speak about Bulgaria. Cheaper and probably less rules to follow.

Ditch · Jul 4, 2015

FWIW, the revision of capital gains tax in the Netherlands is off the political agenda for now.

http://www.nu.nl/politiek/4078241/onderhandelingen-belastingherziening-geklapt.html

Hittfeld · Jul 4, 2015

Thanks Ditch and Iamnobody for your continous help and information.
Dank u wel.

Peternam · Jul 4, 2015

Maverick2608 said:
1) Scrap all the answers pointing to low/no capital gains tax countries. If you trade for a living, your trading is considered self-employment and is taxed accordingly as personal income.
2) Scrap all the answers pointing to countries offering tax-exemption for foreign-sourced income. Trading income is generated at the location where youâre physically present. If youâre physically located in London trading US securities through a US online broker, the trading income is generated in London and taxed in the UK. I paid for legal advice and the tax lawyer assured me that he had seen a legal opinion on this in the UK and that in all likelihood it would be the same in Malta.

Solution:
A) Move to Malta. Climate among the best in the world; health care ranked 5th by the OECD; inexpensive real estate; low cost of living; boring place to live, which will help you concentrate on trading; short flying distance to Ibiza, Barcelona, the Riviera, Paris and London when you want to have fun.
B) Hire counsel to set up a trading company and a mother company in Malta and a mother company in Belize. This setup is fully accepted by the Maltase authorities and there are several legal opinions on the setup by all the big law firms. Your effective tax rate will end up at around 5-8%.

General advice:
â¢ Follow the rules! I learned that the hard way: 1 year sentence, 6 months in prison and a lost career.
â¢ Donât move to a location 12+ hours flight from you family and friends even if you long to get away from them. At some point you will miss them.

Alternatives:
â¢ Monaco - if high-priced real estate is not a problem.
â¢ Dubai - if you want 0% income tax and donât mind long flights.
â¢ Singapore - if you can obtain a permanent visa and don't mind long flights and trading at night.
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is this maltese set up still valid ?

Peternam · Jul 4, 2015

usman88 said:
Another option is Pakistan. It is a pretty safe country except for some areas bordering Afghanistan.

Tax rate is 30% on income but tax system is one of the most inefficient in the world which means you dont need to report your income. You can freely openly bank accounts and all major international banks have large presence here (RBS/Citibank/HSBC/Standard Chartered Bank/Barclays) not to mention local banks which are quite big.

In $3000 per month, you can have a 2000 Sq. Yards house in main locality and live like a king with a driver, 2 guards and 2 servants for the house. Another $4000 per month and you can be driving cars like Mercedes S-class, BMW 7 series, Lexus etc

Internet connections are decent with 4MBPS costing $50/month which is more than enough for scalping.

The best stuff You can trade all markets

Asian markets open at 7:00am
European markets open at 2:00pm
US markets start at 7:00pm

Nothing can beat this!

Bank accounts offer interest upto 12% per annum (profit paid monthly!!!). KSE which is a local stock exchange has been one of the worlds best performing stock exchanges in the last decade
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very interesting

Peternam · Jul 4, 2015

Sanaz3 said:
How come nobody mentioned Iran as a Tax efficient place...all you hear about this country is "Ahmadinejad"... " nuclear program"

I am a native of Iran myself and know that Banks in Iran pay relatively higher interest rates on long term deposits (i.e. 5 year investments) compared to Canada for sure. For example, I see Royal Bank pays 2% interest on 5-year GIC's (Guaranteed Investment Certificates) whereas Banks in Iran pay around 17-18% for similar investments.
http://www.rbcroyalbank.com/products/gic/gic-interest-rates.html

Bank Saman for instance, pays fixed 18.44% interest on long-term 5-year deposits/investments. As for the income tax purposes, Iran does NOT have a strict policy as far as I know, but any taxes on capital gains from investments would certainly be deducted by the banks, but again that's not a high percentage.

Living in the picturesque and scenic northern Iran by the shorelines of the Caspian sea, for a foreigner would definitely be a good option. Any foreign citizen residing in Iran could open an account for themselves and collect the interests while enjoying life there.
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sounds good

Hittfeld · Jul 7, 2015

@Peternam
Just remember: Utilising taxation ineffiencies is a remarkable way of asking for trouble in some countries.

dw31583 · Jul 8, 2015

Is there anyone who could confirm that the lump-sum taxation is available for traders since we manage only our own personal assets? Someone told me this here, on this forum but I'm not sure. I've sent an email to the Swiss authorities right now about this but is there anyone who has knowledge about this matter?