Tax-favorable countries: 0% on cap gains WITHOUT a 'professional' bucket taxing CGs as normal income

Discussion in 'Taxes and Accounting' started by mitchell_1, Nov 13, 2019.

  1. MichalTr

    MichalTr

    You should check Gibraltar and Malta (both in Europe).
     
    #11     Nov 13, 2019
  2. Sweden.

    5% effective tax on passive investment. 30% capital gains tax on active trading. There is no distinction between capital gains and business. Trading as a person is taxed at a 30% capital gains rate - never as business income.

    Now, depending on how much you earn from passive investments compared to active trading, let's say the combined effective rate is 23%. In Sweden you do not pay for health care, primary school, university, child care is primarily publicly financed, pension and a host of other stuff like cultural recreation. Adjusted for that the real effective tax rate compared to other countries for a trader is rather 10-15%.

    I believe that makes Sweden quite attractive for traders. Swedish women are another asset.

    Two caveats:
    1) Your trading has to be consistently profitable on an annual basis, because you cannot carry losses forward.
    2) Significant problems with immigration.
     
    #12     Nov 14, 2019
    Douryan likes this.
  3. tomorton

    tomorton

    Sweden always looks like a great place to visit and a terrific place to move away from.
     
    #13     Nov 14, 2019
  4. otctrade

    otctrade

    How long do you have to hold a stock for it to count as passive investment?
     
    #14     Nov 24, 2019