Wht most pêople forget is that there are 2 countries involved if you want to avoid taxation by visiting another country: the country go come from and the country you go too. I hear and see here always only the country you go to. Cyprus. What is the interpretation of the country where you come from? I think you might want to look into that a bit deeper before questioning my post mate
Yeah I presumed ppl know the difference between Cyprus the Iland and Cyprus the Country/Tax territory. I should have made that clearer
You are on ET, not all people are that smart. First question is: what does Turveyd want to do? Move all his trading income to Cyprus? Second question: will he stay in the UK or move to Cyprus? Going to Cyprus for 2 months and paying no taxes in the UK on the remaining 10 months will not work. Third question: did he ask advice from a PROFESSIONAL tax advisor? If Cyprus would be the ultimate solution, all rich peoiple would use it. And that's clearly not the case. Remember OP's question: What's the best state to live in for tax purposes as a day trader? So it is not about 2 months, it is about living there 12 months. And pay as less taxes as possible.
I have a better solution: If you are so profitable that this actually can be considered, why not just increase your leverage and make more money, so you can stay where ever you are now? (or would you like to live) The whole approach is wrong: It is not where I need to be to save more money, but how can I make more money so I live where I want to. Not to mention there are so many other type of money saving tips beside taxes. Have a smaller house, don't have children, etc. You can even move to a state with higher/same taxes if the cost of living is actually lower, you could be saving. I read these threads as an academic exercise, but the question is way more complex than just taxes. Do you like your friends and family? Do you want to fly 3-5K miles everytime you want to see them? etc.etc.
There's some implicit assumptions there that those moving to live in tax havens have their priorities straight when it comes to what really matters in life. The ability to make money (or inherit it) doesn't necessarily translate to the ability to be good at any other aspects of life. I also think don't have a good grasp on the number of wealthy who move for tax reasons vs those who stay because we read news articles about the former every time one makes a big deal about leaving while hundreds or thousands live where they choose without any fuss. With the possible exception of FL which is a retirement destination for those of all wealth levels, the number of millionaires per capita is definitely still highly concentrated in the highest tax states like CA and NY.
I don't assume anyone that's rich and moved to a tax haven has their priorities straight considering the few I know...they do not. wrbtrader
Just a personal take, I guess. If my state taxes are really high, it means I'm making a multiple of that, and I'm going to live in whatever state I prefer to live in. But sure, if capital preservation is your main goal in life, then picking states to live in based on their tax structure makes sense.
There are other things to consider. How much you save on your trading income taxes impacts your annual bottom line for sure. But your life-long bottom-line includes other items such as your residence capital gain. For example you pay a lot less taxes in Florida but your tax-free residence value gain is very likely to grow faster in NY or CA (lets top 5 US real estate markets).