Are there Counties/Regions with 0% Capital Gain Tax Trading US Stocks and a Tax Treaty with US?

Discussion in 'Taxes and Accounting' started by Cyrix, Aug 27, 2020.

  1. Cyrix

    Cyrix

    Hongkong and Singapore have 0% capital gain tax for trading US stocks, but they have no tax treaty with the US so dividends are withheld at 30%.

    Are there countries with 0% capital gain tax on US stocks and a treaty with the US so that dividends are taxed at a low rate as well?

    Thanks.
     
  2. DaveV

    DaveV

    Puerto Rico Act 60 (used to be known as Act 22) satisfies most of your requirements. The only place in the world you can be a U.S. citizen and avoid most capital gain taxes.

    https://relocatepuertorico.com/overview/
     
  3. Jakobsberg

    Jakobsberg

    In Sweden in an ISK (investment saving account) the tax is 0.375% per year on total account value.

    No more taxes after that.
     
  4. Cyrix

    Cyrix

    Thanks for your info.
    How about dividends? This overview only mentioned capital gain taxes. Is there no dividend taxes either?
     
  5. Cyrix

    Cyrix

    Does ISK allow using margins and trading futures?
    In the US, tax free accounts do not allow leverage or derivatives.

    Thanks.
     
  6. Jakobsberg

    Jakobsberg

    Yes. Options , mini futures, warrants, margin, all fine.

    Its not a tax free account. The tax is 0.375% of the account per year, but if you can make large gains the tax rate is very low.
     
  7. Cyrix

    Cyrix

    Is there a contribution limit to the account? If not, I assume most Swedish people would put all their investment money into such accounts, right?
    In the US, people can put very little money into a tax advantage account if income is higher than a threshold.
     
  8. Sig

    Sig

    USVI has a similar program as well.
     
  9. Sig

    Sig

    It's not clear what your situation is and what you're trying to accomplish. Are you a U.S. citizen? If so, then aside from the exemption @DaveV mentioned going to another country accomplishes nothing for you.

    If not, are you trying to trade U.S. stocks outside the U.S. as a non-U.S. citizen to avoid the automatic withholding that non-U.S. citizens are subjected to on U.S. dividends?
     
  10. Cyrix

    Cyrix

    The question is for non-US citizens/residents trading US stocks.
     
    #10     Aug 27, 2020