No, the short-term capital gains rate is still 33%, making the puerto rican 'tax break' effectively worthless for traders. As far as long-term gains go, that's still around 23.8%, for the US Federal rate. Sure, Puerto Rico has 0% long-term capital gains taxes (for now), but people who make a living off of long-term capital gains (P.E firms/ investment holding companies) are not going to want to live there in the first place, especially considering the fact that they need to deal more with actual faces and will have to be traveling frequently for business anyway. It's not like trading, where you can do it from anywhere. Maybe they're aiming to attract business heirs?, but then those heirs would have to give up their glamorous lifestyles to live in the dump. What is 23% vs. living in a hellhole anyway? Like I said, if they really wanted to attract Americans, they could cater to traders, and offer 0-10% (next to nothing) short-term capital gains rates and put their short-term capital gains rates in parity with actual foreign tax haven rates (even many first-world european countries have similarly low rates, so it's not even about tax havens necessarily). If they did that, then perhaps even major wall street banks would consider shifting *some* of their prop trading operations there, otherwise, this seems pointless to save a few pennies.
Banks and brokerages require a proof of address to open and maintain an account with them, something a resident of nowhere would be unable to provide.
Can't speak for other places but easy enough to open a bank account in Singapore even as a non-resident. I did it when still living in a hotel there, but of course I had an employment pass so that might have helped. In Thailand as long as you have some kind of visa, there are banks which will open accounts for you. Once you have the bank account and proof of address, should be good to go with the broker. Certainly rules vary from country to country and even between banks, so life on the road as a nomad will be a real adventure.
Sure.. i once had a bank account in Hong Kong while not living there but i had to show a proof of address because they send your banking card by mail. Same thing with a non-chinese bank in China like HSBC... OTOH i can open an account with a Chinese bank with just a passport, they give a card right away and never send any statements.. different types of banking i suppose. now go try to do that with a US broker...
I've opened two accounts with US brokers on the strength of addresses supported by bank and credit card statements. So, first the bank, then the broker. I know FATF regs are a real pain, especially as the real crooks get to open accounts with HSBC (think Mexico), but in my experience the compliance people in new accounts at brokerages will work with you to open the account, as long as you understand they have a job to do and you do your best to provide stuff they need. It isn't the easiest thing to do from Thailand where addresses and such tend to be in Thai language/script, which even I can't read, but with a bit of effort and explanation, even that gets accepted. Would I want to go through all this on an endless loop while trying to be sufficiently focused to trade? Nope, but the OP seems to think he might, or maybe he just doesn't know better. Edit: re the address for the bank, yeah, I gave HSBC my address c/o the hotel I was staying at.
I've done that too.. but for your address to be on your bank statement you had to provide a proof of address to the bank.. lol.. pretty lax at HSBC..
Proof of address was my hotel bill and a letter from the GM confirming that I was a long staying guest on a corporate account. As for HSBC, their Thai operation is the biggest pain in the butt imaginable, as in being anal about all this stuff. I closed my account with them and shifted to a local bank because of that. HSBC Singapore is much more 'can do'. I haven't dealt with HSBC Hong Kong, but my Yank buddy swears they are even better than Singapore. The trick to all this really is just understanding why they need what they ask for, and then working to fulfil that need best you can. And yes, make sure they know you are doing your best, because then they'll cut you whatever slack they can.
Well, if you earn less than the limit, it's another story, but many foreign banks won't even open accounts for US citizens now as a result of FATCA. Anyhow, you are still technically liable to IRS/US gov laws, despite falling under the limit, so you can't avoid those laws.
No one is talking about tax evasion here, all I'm saying is that if you are spend most of your time abroad(US citizen) you are eligible for 95k credit on your income. X2 for a couple. Not a bad deal, which might greatly reduce yor tax liabilities