Dual residency: Open account as foriegn or US trader?

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

  1. Let's say that profits are $1 million a year. I don't see how it's possible to get the money out.
    #11     Nov 5, 2008
  2. In Europe there are much easier totally legitimate ways to minimise taxes. Monaco seems expensive but theres plenty of affordable options...


    If you can stand the weather the taxes are 12.5 percent for companies in Ireland. 20 % on all earnings up to 300 GBP, around 500k USD in Britain.

    Theres Andorra, Campionne, etc etc.

    If you really like the idea of Spain move to Gibraltar at the southern tip of Spain. Its 10k GBP per year payable at 800 pounds a month flat tax regardless if you make 100k or 100 million. Lots of options... but do not, repeat do not, try and break the rules as when it comes to money the system has no sense of humour and will find a way to well and truly break your balls.
    #12     Nov 5, 2008
  3. Any way without moving location?
    #13     Nov 5, 2008
  4. Those are interesting ideas. I'm not sure if it's better to pay taxes in Spain or pay no taxes in Ireland. ;)

    Maybe establishing a main residence in ireland and a smaller residence in Spain would be a possible solution?
    #14     Nov 5, 2008
  5. jjf


    There is insufficient info to provide a definitive solution, but here is the broad outline.

    Form an offshore Foundation (BVI, Panama etc) and through the Foundation hold an LLC by virtue of bearer bonds. I say BB because this firewalls your Foundation whose sole purpose is to hold assets and never to trade or become exposed to risk.

    LLC opens a brokerage account and trades and opens a bank account in BVI etc (doesn't need to be same country as LLC rego).
    Money flows back to LLC and surplus passes to Foundation as an internal bank transfer.
    Ideally LLC pays you and your partner a pension after tax but if you are both young then you income split into two basic salaries and pay some income tax in Spain unless you can remain out of the country for about 183 days pa.

    Do not avoid paying a little tax and do not use a tax haven card in an ATM or at a store in spain ... it is a red light and you will be hunted down.
    Use your cards on your holidays in other countries outside EU and bring home cash.
    If you require large chunks of money then mortgage it from one of your LLCs, but never involve your Foundation.

    Remember tax law is napoleonic law. The onus is on you to prove your case. The burden of proof does not fall on the Tax service.

    At all times stay under IRS radar which I think is around 80K pa.

    Tread carefully and stay within the laws of the countries you are committed to at all times.

    If your trading account is not substantial, then forget the whole adventure and go with income splitting.

    Spain is not an ideal country to use as a residence but that is over to you.
    #15     Nov 5, 2008
  6. Already answered. The only unknown is the sum of cash he could bring into Spain from the BVI on a monthly basis without setting off alarms.
    #16     Nov 5, 2008
  7. jjf


    The problem with transfers is that they are so easily tracked without your knowledge thus allowing a history to build up.

    If however you mean cash as in cash then yes you and your Wife are separately entitled to bring a certain amount of cash into most countries undeclared.

    Just make certain that you uplift it in a country with no reciprocal agreements.

    At all times you living standards must be more or less in line with your declared income whilst you are in the country of your residence.

    As I have said, Spain is not an ideal country.
    #17     Nov 5, 2008
  8. All my assets in Spain are owned offshore. I receive a monthly salary paid from the BVI's to Switzerland. I am not the offshore compans's legal representative here in Spain either, I use a Ships Agent through which all my bills are paid by them and settled through the BVI company account. This allows me to not have a Spanish bank account. I beleive I am as far under the radar as is possible.
    #18     Nov 5, 2008
  9. ummm... you guys are talking about tax evasion. not judging it, but let's call a spade a spade. every strategy listed is 100% illegal, including daxscalper's. awesome you haven't been caught yet man, but if you do, the odds are high you will be majorly fucked.

    to the OP: if you're an american, forget about it in your name. as a US citizen you're taxed on worldwide income regardless of residency. if you don't report and sign-up to a broker under a different nationality, you'll get fucked eventually. with the state of affairs in the world, now and going into the future, hiding income from governments will be an incredibly stupid thing to do. Risk: you lose everything and go to jail, Reward: you get to compound your 35%. I don't care how much you're making, that RR ratio sucks.

    if your interest is to pay no taxes, only game in town for you is if you're a non-resident: you can trade through your wife's acct. just make sure you're not a resident in her country, or more than likely you'll owe there. oh, and if you really kill it in her acct, just be sure that you're 100% a dominant male and that she doesn't understand the value of money... if you're not and she does, look forward to becomming a eunuch.
    #19     Nov 5, 2008
  10. Surdo


    Don't worry, I am sure the webmaster here won't give out your IP address you genius!
    #20     Nov 5, 2008