You don't, because several countries tax only locally sourced income, in which case you need to establish set ups that make your trading income appear non locally sourced, usually through an offshore corporation. Depending in which country one resides it is not very difficult to do. Also some countries don't tax the trading income from their residents and others are not too picky (or able) on checking immigrants offshore income
You guys have no idea how difficult it is to save on tax in Europe without lawyers, money and a lot of luck! The fineprint is important, the expression domiciled as used by HMRC is completely different from most other countries. Its complicated and risky, as you will be liable for at least 10 years taxes backward, if your construction fails ultimately. Remember Boris Becker? For Germans like him 183-days is ONE rule, but if you have permanent possibility to dwell in Germany (like a key for monbile home) you will be liable - even if you are there only 3 days per year. So finding a low tax country is difficult - albeit finding a high tax country which doesn`t tax your personal style of trading/investing fit the bill. Countries like Belgium, NL and Sweden (and naturally CH) are best for low turnover traders. Combine this with trading through some wikifolios should make it perfect. Regards P.S. Try to open an IB account with your ukrainian hotel adress!
Depends of what is agreed in the bilateral tax agreements between Belgium and Malta. Can be zero taxes, can be something else. Trading in Malta is taxed as income, even as non resident. Sow what is there to gain in Malta? Example of Malta: this is the answer from the Malta Inland Revenue Department on a question from a trader: I finally received the answer from the Malta Inland Revenue Department: “Any trading income that is made while one is residing physically (resident or not has no importance!!!) in Malta is considered as income arising in Malta and taxable in Malta.” If you are trading every day for a living, the gains are not taxed as capital gains. The gains are taxed as business income. As such they are taxed in Malta, because your business activity takes place in Malta. The Maltese tax authorities have confirmed this to me in an e-mail. How do they qualify those earnings as capital gains or income? By quantity of operations? By quantity of money won? By quantity of operations, i.e. trading frequency and volume. The gain per se is not relevant, it may zero or negative and the activity will still be classified as a business activity.
To I am nobody: sometimes even the simplest concepts can be hard too grasp. Some countries do not care what you do offshore (outside your country of residency). Of course, do a due diligence beforehand.
Most European countries see offshore as tax evasion. They taxe on transparancy, which means that the offshore money will be taxed as personal income. Offshore is considered illegal and you should show the economic necessity of the construction, show that there is real activity, office, people working, orders should be sent from there, not from where you are...... If you manage the compnay and do the trading you should live in the offshore land, if not you will have big trouble. Mailboxcompanies don't workj anymore. Don't believe all the stories that it is easy. I will stop here because I don't want an eternal discussion. I can give you only one advice: go to a taxconsultant because every specific situation can be different.
I mentionned that those set up where good for countries that only tax locally sourced income, which is not the case in Europe, where countries usually tax worldwide income (UK seems to be an exception with the non dom scheme ). Still there are tax minimizing set ups available in Europe, arguably costlier and more complicated (the Luxembourg investment fund/Belgium residence beeing apparently one but you seem to claim it doesn't work - I haven't pushed it deeper though as I'll be out of Europe for a few more years most likely and getting the license in Luxembourg doesn't appear a walk in the park)
Absolutely, and ask around if you know people who make serious coin and use complex schemes, they might add some interesting tidbits as well.
The Luxembourg special investment fond works no longer with most EU tax authorities and was connected with high administration costs. The Gibraltar bus funds also won`t be accepted anymore.
Thanks for the update Hittfeld, is it also dead with Belgium ? Brussels although far from my favourite european city, is probably the place where we would feel most home after home itself (along the french speaking part of Switzerland which i like more actually) But the day I go back to Europe will possibly be close to the one I'll stop active trading, it's quite a bit easier taxwise when one is just managing his money "en bon père de famille" as the law states in Belgium, and also seems understood in Switzerland.