Been living in Palma de Mallorca now for a number of years...cant beat the lifestyle. Happy wife, happy kids.
Have an accountant do all my taxes so not really sure but your income that you earn outside of the USA, if you are a US citizen, is exempt up to $91,400. If you are a US citizen, worldwide income must be declared but income earned overseas is exempt up to $91,400. Your capital gains, depending on the tax treaty of the country you reside in, are taxed the total amount. For example, if you live in Japan, you pay 20% tax on all capital gains derived in the US and the balance of the tax whether it be short or long term cap gains must be paid to the US. Tax laws are complicated and it's best to have an accountant worry about those things for you. Trade, make the money and let someone else worry about figuring out the taxes.