Which countries are tax free for forex trading?

Bloody hell!
The first coherent and sensible answer to the question and now Xela's membership has been revoked.
Frankly who cares if, as has been said, "he isn't who she says she is" if his/her responses are thought out and cogent?
I'm thinking of moving to Portugal by the end of next year and would love to hear if anything has been finalised on this yet. I know that UK pensions are non-taxable but an unsure about profits from spreadbetting, especially if I keep my account in the UK although I would be resident for tax in Portugal. . . . tricky, huh?

What about Pakistan?

@espen and many others who have contributed to this thread,

I landed here because I am currently in almost in the same position like @espen was 2012 when he created this thread. I am planning on relocating from Germany sometime in 2017/18 to a sunny, warm and friendly country, it should be English speaking with my family. I am currently trading and plan on building a business around trading (money management). I am considering somewhere in the Caribbean or in Africa or in North America but not sure as of now. I just like those mentioned regions

@espen did you finally relocate? Where did you settle and what do you think of the decision now granted it has been 4 years now. For those who have also contributed in this thread in the past or made the decision because they got inspired from here, please, update us with you experiences.

Thanks

Have a look into Panama. They are a big time tax haven and you can be a natural person to avoid taxes. No need to create an S.A. which is like an L.L.C. US dollar is the base currency and has the highest GDP in Latino America.

Malta has a great weather, I was wearing a t-shirt in late january/early february. people are friendly and the taxation is maybe one of the lowest in the world. I definitely recommend Malta

You can cut your tax down to some 5% living in malta with a little bit of help from gibraltar (non-dom status and capital gains are the keywords here). Not bad actually considering its a country within the EU and not some developing country where you need personal protection if you're wealthy.
Only Monaco comes cheaper in regards to tax: 0% CGT and 0% income tax but renting or buying is very expensive, even higher than central London. We're considering a move anyway.
To everyone looking for offshore companies for your trading, don't trust the formation agencies, they have no clue when it comes to tax. If your country has a CFC-Regime going offshore for your trading as a means to cut tax will most likely not work and might get you in serious trouble with the law - we're speaking tax evasion here, not avoidance. so clearly illegal. That might also be true regarding the Portugal option Xela had mentioned.

How can someone in the US take advantage of a place like Panama or the Virgin Islands.

Move there, buy another citizenship and give up your US tax slaveryship.

Sorry for being honest.

Long answer:
Typical no/low-tax off-shore destinations won't work if you don't have very trustworthy friends there. The problem is that:
Let it be US, Germany, UK, France ... it doesn't really matter (much) when it comes to off-shore entities. We live in countries with CFC rules, that means creating off-shore entities without substance in those destinations won't work. Substance means having an office, staff, a local CEO and so on at your tax haven (basically a real company, not just a letterbox). It's easy to see why those things won't work for a lone trader.
Traders from most other countries would probably move away, either to the UK (and trade on spreadbetting brokers), or to Ireland, Malta, Gibraltar, Andorra, Monaco, Isle of Man, Jersey and so on. As a US citizen you'd still be liable for US tax so that won't help you either.

If I were you, I'd probably look for professional help on how to cut my tax bill legally within the US.

Little update: Gibraltar offers a low-tax residency for high net worth individuals. It's called category 2 residency.

It would be too good to be true, but I heard it is not. If spread betting becomes your biggest (or the only) source of income, it might (or it WILL) be taxed as regular income. Some UK traders could confirm that - unless some UK lawyers may say otherwise.

If anyone wants to optimize your taxation in a definitive, LEGAL way, that's the best source I found so far: https://www.elitetrader.com/et/threa...4#post-4422236. You can read the entire thread - I did it - and take your decision.

Strangely enough, that link didn't mention Andorra. Even though they now have income tax, it's only 10% maximum (ZERO for income below EUR 24.000,00).

Of course you should confirm all those information with your consultancy and/or lawyers.


In short:
* you want 0% personal tax? Monaco for the super-rich, Dubai for the not-so-rich, some Caribbean islands for those who prefer them
* you accept some low tax? Andorra seems to be the best (around 7% on EUR 100.000,00)

Remember:
* daytrading is considered as regular income, not as capital gain, so forget about Switzerland & Co.
* you pay tax where you are resident - your gains are not foreign gains just because your broker is from another country
* corporate solutions will bring more cost/trouble and eventually not work; some countries don't tax the corporation profits but will tax your dividends! Is it worth?
* your choice of country will bring consequences in terms of residency - while you don't have to feel "jailed" in that country, you must spend some days there and each country has its own rules

Indonesia