I'm the same - I wouldn't fancy coming up with a long-term way of life that depends on constantly looking over your shoulder. I know there are plenty of people who do this, but it wouldn't be for me. You're only allowed one tax-free car import, I believe, and it has to be arranged within a certain time-period of your taking up residence. I've certainly heard of people bringing diamonds in their pockets. (Also with the country comprising islands with a lot of little ports, tourism, boating and fishing activities, and so on, I think it's probably pretty difficult for the authorities to know exactly what comes in and goes out of the country. But very significant incongruities between apparent income and apparent lifestyle are probably going to alert tax authorities anywhere, these days, with all the understandable international sensitivity to immigration, money-laundering, and so on?)
Yes absolutely. I have seen tax authorities destroy people who have taken risks, that's not for me. Totally get what you are saying about apparent income v. lifestyle raising red flags. These days it's so easy for people to grass you up, and they will. Flying under the radar would be require living like a hermit.
Bob: Anything particular you like about Wedbush Futures? I have an IRA account with Midland IRA but trade with a third party platform, so far their service is good.
since you are in UK and assuming you're not US Citizen then open futures account with US broker, whatever you make will not be reported and any taxes will be your own responsibility.
You can always move to Central or South America. Nicaragua is nice and civilized now I am told though I have yet to visit there, Colombia, particularly Antioquia which is a department or region is excellent. Bogota the capital.. meh but it is fine but the weather is not great. There is very little they are aware of regarding foreigner's sources of income. I know a couple of traders who have bounced between tourist and student visas for years seemingly totally invisible. I have a company in Colombia for a non-trading business but I just pay myself a modest salary and there are a lot of large deductions to take which reduce tax exposure (mortgage, pension, health insurance) and stay in the 0 - 19% bracket. Because it is so much cheaper to live here regardless of tax it will be very economical compared to a normal (boring) western country. Ping time is ~100ms to Chicago and completely stable.
Puerto Rico residents don't pay U.S. federal capital gains tax, even U.S. citizens. It's pretty much the only legal way a U.S. citizen can avoid it. The only rub is that you actually have to spend 183 days a year in Puerto Rico, and you lose your ability to elect a senator and representative to represent you in Congress.
"min 180 days" rule/half year (of residing in a country) is a typical way across the world to distinguish residency for "tax purposes" so you don't pay your taxes twice, but that's not the only one rule. Often there are other requirements like that all your activities (business and personal) are moved to another country too. It is best to check your local tax code for details. Taxation usually equals representation. If as a US Citizen you claim residency outside the US then it would make sense that you can't vote for a local representatives (Congress) since you're not local, but I'm sure you can vote for President. But then again, it is important to distinguish "residency" for tax purposes from other rights and obligations that are associated with Citizenship. Tax authorities are concerned with taxes they collect, not with your voter's ID card or other rights/obligations. Similarly, an illegal alien living and working in the US is a "tax-resident" of that country (regardless of his immigration status) and should pay the taxes (one of few cases where taxation doesn't equal representation).
I live in the Bahamas, 0% income tax or capital gain tax. There's only an import duties tax which makes life more expensive than most other places (US, UK, etc...). Housing is also expensive if you want to live in something decent... There are good flight connections to the US and the UK.
If you are not a professional diamond trader I would certainly advise against that. Very easy to lose more than the 20% tax on remitted funds while buying and reselling diamonds, besides there are extra risks on trading and carrying diamonds under the radar against just wiring legal funds between 2 same name accounts .
Puerto Rico is part of the U.S., by the way. It is just that it's a territory and it's citizen's can only elect non-voting members of Congress who have no real power to do anything.