What is the country with the lowest capital gains?

eminem

Active member
Apr 3, 2003
185
1
28
Worcs
#46
chump said:
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...
Yes it would be possible to arrange your affairs as I described above BUT like you say the mechanics of achieving it and the practicalities involved make the blueprint a bit of an academic exercise for all but the very wealthy, there are afterall high costs involved in the maintenance of such schemes.
 

pkfryer

Active member
May 19, 2004
243
0
26
Guildford
#48
chump said:
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...
Chump, what would be considered a country that you are generating income in if you are infact making your money via internet activities such as we do in trading. Would it be the country that the broker is based in or the country that you do the trading in?

Rogue Trader, when you say you were in tax exile, what does that mean? I thought being in tax exile is when you owe tax in a particular country and can't go back for fear of being stung for the bill or arested for tax evation. If you live for over 190 days in a particular country would you not be subject to there tax and therefore not be in exile at all?

Also, the 90 day rule for the UK, is the consecutive days or days per year?

Tax law is confusing! Good job that a lot of the countries that have more lenient capital gains have good climates :O) What is the income tax/capital gains level in malta (still top of my list being English speaking and with pretty low tax levels)
 

henry766

Active member
Nov 20, 2003
433
17
28
#49
there must be succsessfull traders that live abroad to avoid paying tax , ( trading is such a business where this is likley) i've even heared of someonbe who trades from switzerland? what are the rules for places like jersey or monaco?
 

roguetrader

Well-known member
May 29, 2003
2,062
49
58
#50
pkfryer said:
Rogue Trader, when you say you were in tax exile, what does that mean? I thought being in tax exile is when you owe tax in a particular country and can't go back for fear of being stung for the bill or arested for tax evation. If you live for over 190 days in a particular country would you not be subject to there tax and therefore not be in exile at all?

Also, the 90 day rule for the UK, is the consecutive days or days per year?
pkfryer, a tax exile is someone who lives outside his or her own countery in order to minimize tax, there is nothing illegal involved.

The 90 day rule does not have to be consecutive it is simply 90 days in any one year.. In other words if you had established a tax exemption from the UK by living abroad you would have to limit your visits to the UK to total no more than 89 days in any one year. Of course under the dual tax agreements set up by countries if you were paying tax in the country you were living in then this would not apply provided the UK had such an agreement with that country.

Interestingly I was told something by an accountant aquaintence the other day, but it should be taken under advisement as he pointed out he had no experience with this particular circumstance, and I have not had time to inveatigate further as yet. But, he said as he understood the tax law, if your account was based in the US trading, US securities, but you were resident in the UK. The US IRS would take no interest in you with regards to trading profits as you were not resident in that country,and the UK IR would only take an interest in money as and when it was brought into the UK from such activities.
As I say I have not checked this out with the IR yet but an interesting thought none the less.
 

pkfryer

Active member
May 19, 2004
243
0
26
Guildford
#51
I just read an interesting thing about Malta. To be eligible for their local tax laws you have to apply for permanent residency, but after you are considered a permanent resident you actually dont have to stay a minimum period in the country to benefit from their low tax!!

Have a read of this just in case I've got the wrong end of the stick.
http://www.henleyglobal.com/pdfs/Malta2001.pdf

The 190 day rule for residency is not fixed accross the board for all EU countries.
 

roguetrader

Well-known member
May 29, 2003
2,062
49
58
#52
That would not surprise me as once you have residency in a country I am not aware of having to spend any particular amount of time in the country. The trick is all in getting the residency in the first place
 

Roberto

Well-known member
Aug 28, 2004
1,069
11
48
uk
#53
roguetrader said:
he said as he understood the tax law, if your account was based in the US trading, US securities, but you were resident in the UK. The US IRS would take no interest in you with regards to trading profits as you were not resident in that country,and the UK IR would only take an interest in money as and when it was brought into the UK from such activities.
That's my understanding also. I believe that such activities can lawfully be pursued using a Channel Islands account without paying UK tax, but that in such cases one probably isn't really supposed to use a credit-card attached to the account inside the UK (how enforceable this would be is unclear).

pkfryer said:
I just read an interesting thing about Malta. To be eligible for their local tax laws you have to apply for permanent residency, but after you are considered a permanent resident you actually dont have to stay a minimum period in the country to benefit from their low tax
Without wanting to sound authoritative about it, since I'm not an accountant myself, I'm investigating the whole thing with a view to becoming both domiciled and resident in Malta in a couple of years' time, and that's very much my understanding too.
 

Roberto

Well-known member
Aug 28, 2004
1,069
11
48
uk
#55
henry766 said:
what is the cap gains rate in malta?
It's just "additional income" and taxed as income. Lots of things off-settable ... including "previous business losses".
 

pkfryer

Active member
May 19, 2004
243
0
26
Guildford
#57
This is what I've found at the henlyglobal site about malta and the conditions to apply for permanent residency. Apparently it was a lot harder to become a resident in malta until they joined the EU which permits anyone in the EU to buy as much property and in what ever country they choose.

"Conditions for obtaining a residence permit

While there is no minimum stay or residence required, when the permit is first issued the Permanent Resident must come to Malta at least once within the first twelve months to have the passport stamped and to register with the Inland Revenue Department. The permanent residence status is open to those foreigners who can provide evidence:

1. that they have an annual income equivalent to 10,000 Maltese lira (MTL, 1 MTL = approx. US$ 2.50), or that they own capital equivalent to MTL 150,000; and

2. that they are able to import into Malta from overseas a minimum annual income of MTL 6,000, plus MTL 1,000 for each of their dependents. For the purposes of this scheme "dependents" mean: the spouse, children under 21 years of age and a parent or grand parent who is wholly dependent on the applicant.

Once in possession of the permit, the resident must within the first year from obtaining the permit:

3. either (aa) Purchase a flat valued at least MTL 30,000; or

(bb) Purchase a house valued at least MTL 50,000; or

(cc) Rent property for at least MTL 1,800 per annum.

4. annually remit to Malta from overseas a minimum income equivalent to MTL 6,000 plus MTL 1,000 for each dependent.

5. not engage in business or employment nor engage in any form of political activity in Malta. This general statement however is subject to the following clarification: the Permanent Resident cannot be employed by a Maltese person or Maltese registered company and cannot offer freelance services to Maltese persons or Maltese registered companies. However, Permanent Residents may use Malta as a base to work from, provided that they do not offer their services on the local market. Permanent residents may also be employed by or offer their freelance services to persons or companies outside Malta. Finally, Permanent Residents may be directors of International Trading or Holding Companies registered in Malta but may not be the beneficial shareholders.

Upon the death of the permanent resident, the residence permit is transmitted to the surviving spouse, but does not pass on to the descendants upon the death of the spouse."
 
Dec 12, 2003
39
0
16
#59
Anyone know of any arcades/prop shops operating in Malta or indeed any other interesting location to go and trade? (not necessarily low tax just good places to go and live/work)

eg
Mac - several (gibraltar, paris etc)
STA - Marbella (Monaco in the future i believe among others)
Optiver - Amsterdam

any others?
 
Jan 9, 2004
97
5
18
#60
binsley said:
Anyone know of any arcades/prop shops operating in Malta or indeed any other interesting location to go and trade? (not necessarily low tax just good places to go and live/work)

eg
Mac - several (gibraltar, paris etc)
STA - Marbella (Monaco in the future i believe among others)
Optiver - Amsterdam

any others?
An outfit in Malta with GHF connections.
http://www.seatra.net/dotcom_index.php