What is the country with the lowest capital gains?

Roberto

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Aug 28, 2004
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#32
Chump is absolutely right about this, Henry. I've been investigating it recently and my Cousin The Chartered Accountant also confirms it. :)
 

eminem

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Apr 3, 2003
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#34
henry766 said:
isn't it possible not be resident for tax here or anywhere else as long as your not resident here ( 190days ?) and not long enough anywhere else to be considered resident?i believe there's even a term for it which i forget)
I think the phrase you may be thinking of is Perpetual Traveller (PT)?? This was possible a few years ago, but I haven't looked at it recently so things may have changed (probably due to 9/11 issues). The idea behind being a PT was that you wouldn't stay in any one country long enough to be resident for tax purposes, you were always classed as just visiting (ie a tourist)
 
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oatman

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Feb 4, 2003
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#35
I could curry my toe nail clippings and they'd taste good !!

Yea, but would you eat them? :LOL:
 

henry766

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Nov 20, 2003
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#37
thanks eminem , i'm not sure it has changed either , and you also don't have to move on as often one might think !! like you say didn't the spice girls do just this a few years back?
 

chump

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Dec 12, 2003
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#38
"that you wouldn't stay in any one country long enough to be resident for tax purposes, you were always classed as just visiting (ie a tourist)"...let's be very clear this has never had a basis in law....it does however exist in wishful thinking....if you earn then you are liable to pay tax somewhere..the rules are just to determine where that somewhere is...not if there is a liability..
 

roguetrader

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May 29, 2003
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#39
chump said:
PK,
The usual rules (there are exceptions) is that when you establish tax residency in another country you will not then be taxable here in the UK (double taxation agreement). How to establish tax residency..normally entering a country and staying for longer than 180 days in the current tax year will establish residency and bear in mind the Uk tax year Apr-Apr is pretty much the exception to the rule..most run Jan to Dec.
Having been a tax exile for five years I was informed by the Inland Revenue that if I was in the UK for 90 days ormore in any one year I would be subject to UK taxation assuming I was not already paying tax anywhere else.
 

chump

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Dec 12, 2003
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#40
Rogue,
The information you were given is correct....180 days is the initial time criteria...for the UK it is then aggregated to 90 days pa over any 4 year period for longer absences,but again this is subject to whether you are being taxed elsewhere in a country that has a double taxation agreement with the UK.
 

henry766

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Nov 20, 2003
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#41
well yes there is a certain amount of wishfull thinking here i'm sure chump, mind you if you have made a lot of money from trading and are happy to live abroad tax isn't such a big problem as arn't most trading profits capitol gains and this is the easiest one to get round / reduce, but i don't pretend to know much about it , unfortunatly making my fortune is still first worry!!
 

eminem

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Apr 3, 2003
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#42
chump said:
"that you wouldn't stay in any one country long enough to be resident for tax purposes, you were always classed as just visiting (ie a tourist)"...let's be very clear this has never had a basis in law....it does however exist in wishful thinking....if you earn then you are liable to pay tax somewhere..the rules are just to determine where that somewhere is...not if there is a liability..
So logic would suggest that you could make a "base" in a no/low tax jurisdiction and then hop from one country to another always staying under the "taxation days" threshold? Your earnings would then be subject to tax in the no/low tax area only.
 

henry766

Active member
Nov 20, 2003
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#43
not sure eminem , the other guys seem to know what they are talking about , i suspect once you've convinced uk taxman your not resident, other countries won't take too much notice about how long you hang around , but maybe the uk taxman won't be convinced these days unless you state another country for residency , feel a headache coming on , still i suspect most billionaires find some lucky reason they don't have to pay as much tax as most of us, who knows maybe they even pay accountants etc !!
 

Roberto

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Aug 28, 2004
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#44
henry766 said:
.arn't most trading profits capitol gains and this is the easiest one to get round / reduce
Well, yes; here you have a point. That's generally true. There are also many countries with no CGT and many more with CGT at around 15%. There is, however, another issue involved: in many countries (including this one, under some circumstances) if income _otherwise_ taxable only for CGT is your _sole_ income, it can become eligible for income tax instead of CGT. There are, of course, other countries (for example Malta and Latvia) in which the current CGT and income tax rates are the same anyway.
 

chump

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Dec 12, 2003
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#45
Em,
There is nothing to stop an individual establishing residency in a country (low tax or otherwise) and then generating revenue in other countries as long as this is done within the time and residency rules..but, if you think about it you will soon realise that such activity is not that simple to organise on a practical day by day basis at least for most people..perhaps certain consultants can take relatively short contracts and work along these lines ,but a lot depends on the activity and the demand for it...