Dual residency: Open account as foriegn or US trader?

Discussion in 'Professional Trading' started by cunparis, Nov 3, 2008.

  1. Hi, I have dual nationality and residency so I can open a futures account as a US resident or a foreign resident. I'm curious if there are any advantages to either. I understand the capital gains taxes for futures in the US, but for foreign residents I really don't know how that works.

    If anyone with a non-US resident and has an account with a US broker, maybe you have an idea of which would be better?

    For example I have no idea how I'd report my capital gains in my country, especially if they were made in another country.
  2. I am resident in Spain, trade with an American broker for a offshore company registered in the BVI that banks in Switzerland. I pay no tax.
  3. I should add that legally you can only be officially resident in one location at a time so get clarification on your legal domicile.

    As an American, if you open a US brokerage account Im pretty sure the tax man will be interested. Best speak to a tax professional.

  4. This is interesting! I was hoping something like that would be possible. How did you set up your company in the BVI?

    I'm American but my wife isn't so that may be the best option.

    EDIT: Just googled it. Seems pretty simple and common. If anyone has is using this approach I'd love to have your experience.
  5. just google offshore companys bvi and start investigating. If you pm me I will give you the contact details of a company that can set up a swiss bank account on your behalf.
  6. I don't know about Spain but usually its not only about where the company is resident, but also where the company is controlled/managed from... So if you are planning/executing trades from Spain, you should be taxed in Spain... Or are the tax laws different?

    Some links to resources would be helpful...
  7. He should be taxed in Spain but if nobody knows that he has an account in BVI............
  8. But how does the money come out?
  9. Perhaps he keeps his money in the BVI and does all his banking through there, bringing back only enough cash to avoid Spanish IRS/Customs sniffers. If the bills are paid from out of the country, there is no direct route of funds tracing... unless the Spanish IRS gets interested.

    Monthly profits would have to exceed four figures for such an arrangement to be worthwhile.
  10. Not worth the penalty, imo
    #10     Nov 5, 2008