Dear- "There is No income tax in Monaco" is stated in the link below. Probably other tax like corporate or real estate is taken instead of income, to run Monaco. A) In this case, capital gain tax (for stock trading) is within the income tax? B) If so, how about flying to Monaco with legitimate physical address and trading with IB online, for smaller tax than the 1040 tax rate? C) What other country can we pay little or NO capital gain tax, especially in stock trading? I heard that Belgium and Latvia(?) ask little tax in stock trading.
Possibly, Monaco people pay more real-estate tax than US so that their monthly rent might be higher than US.
A while ago you were concerned about paying $10 per month for real-time quotes, now you're talking about Monaco where the tiniest apartment will cost you much much more than in US (with a few exceptions).
If there is absolutely NO tax for trading profit, I would gladly pay huge rent. Please note that tax rate grows exponentially over the long run, however rent is almost fixed (proportional to inflation and its growth) Have you ever been in Monaco, or just heard? I already paid internet/month, which should allows connection to https://www.tradingview.com/e/W6EVLiML/ (realtime???) so that additional $10/M may not be necessary at this point. If things is changed, such as for API data feed, the I may pay the $10/M in the future.
Here is a summary of what I am thinking. Please correct me if any. Suppose we have a seed of $100K and have a trading logic of annually compounded 20% (if confident) before tax. A) At the country of NO cap gain tax, from 30 to 80 (for 50 years), your wealth should grows from 100K to 100*1.2^50 = 910043.8 = 910M. B) If there is 50% of cap gain tax rate in your residence country of your OWN CHOICE, you shows only 10% of annual compounded PnL after CapGainTax EVERY YEAR. With same seed of 100K as in A), after 50 years, your asset is going to be 100*1.1^50 = 11739.09 = 11M. Please note that the difference is 910-11=900M. Therfore even if you have rent contract in Monaco for the next 50 years, and if you live in US with empty room in Monaco, then still your paying rent in Monaco with plan A) is profitable than plan B) I wonder if Monaco's requirement for residency. I heard some country asks any rent contract/WaterElectricityBill or deed for real estate. If someone need US residency (hypothetically) for example, he may better to buy a pretty cheap home/land in Detroit/LasVagas, just for deed, rather than paying rent for an empty room for 50 years. PS) Obviously "before tax" means "after brokerage" PS2) For similar situation, let A) CapGainTax of 20% for some country and B) CapGainTax 0f 40% for 1040 highest tax bracket.
There are a lot of countries with no cap gains tax that are much cheaper to live on than Monaco. Off the top of my head I can name The Bahamas, BVI and Panama
Bahamas with pop 0.38M and BritishVirginIsland with pop 21K, and Panama with pop 3.4M, based on Wiki data. In some undeveloped country, it is not expensive to buy a green card, which is usually a lot stronger than residency requirement for trading CapGainTax, if I heard correctly.
One major cost not taken into account: costs for security. Many have a huge surprise when something goes wrong and they discover "hey no, there is no rule of the Law here like back in your homecountry".
Of course, security for crime is also important, but NOT as important as US$900M in the above example. Also please note that you do NOT have to live there all times, you just need to pay rent every month for tax qualifying, if the assumption is correct.