Suitable structure/residency for active trader (Stocks, futures, options)
- Thread starter RAGAV
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That may be one of the best decisions, you will avoid any taxes and can live like a king there if you make sufficient of money, which does not need to be millions.
I honestly wouldn't worry too much about this at this point.
I would try reaching out to UAE-based traders. I'm sure there are groups on Meetup, Facebook etc.
See what they do.
Of course you can also set up a BVI company or something like that and use that to trade, but I would guess that they would still report you under CRS as︀ the UBO. So not sure how much of a difference that would really make.
I would try reaching out to UAE-based traders. I'm sure there are groups on Meetup, Facebook etc.
See what they do.
Of course you can also set up a BVI company or something like that and use that to trade, but I would guess that they would still report you under CRS as︀ the UBO. So not sure how much of a difference that would really make.
I am thinking of obtaining a freelancer visa from one of the emirates in UAE and trade in my personal name. Open︀ a bank account in another EU country while residing in UAE.
If at all UAE︁ authorities find any issue about misuse of license/[or not taking appropriate license for trading derivatives︂ in personal account], I might be subject to penalties but they would not be able︃ be able to freeze my funds in foreign banks, right? As another poster mentioned in︄ another thread, the best option would then be to buy a one way flight ticket︅ out of UAE and get out.
Can you also provide another suitable easier residency option︆ in a safe EU country with low taxes [either corporate or personal] in any EU︇ country if I rule out UAE? [Ex. Malta, Estonia, Cyprus, Portugal]
Some Asian countries are︈ attractive for expats but the time zone to trade US markets is not convenient.
Will my trading profits be considered foreign-sourced income? Asking this because I read that there are︉ some countries like Malaysia, Singapore, Hong Kong, Thailand, Portugal that don't tax foreign-sourced income.
If at all UAE︁ authorities find any issue about misuse of license/[or not taking appropriate license for trading derivatives︂ in personal account], I might be subject to penalties but they would not be able︃ be able to freeze my funds in foreign banks, right? As another poster mentioned in︄ another thread, the best option would then be to buy a one way flight ticket︅ out of UAE and get out.
Can you also provide another suitable easier residency option︆ in a safe EU country with low taxes [either corporate or personal] in any EU︇ country if I rule out UAE? [Ex. Malta, Estonia, Cyprus, Portugal]
Some Asian countries are︈ attractive for expats but the time zone to trade US markets is not convenient.
Will my trading profits be considered foreign-sourced income? Asking this because I read that there are︉ some countries like Malaysia, Singapore, Hong Kong, Thailand, Portugal that don't tax foreign-sourced income.
Theoretically you can also structure the entity in such way to avoid reporting.
EU residency might be unreasonably costly, but if you obtain a long term︊ schengen D visa you can easily open a bank account.
For example a digital nomad︋ visa, if you meet the requirements.
D visa is possible to apply also on the︌ general basis if you build some substance and have sufficient savings/income.
You might also want︍ to look into UAE golden visa.
EU residency might be unreasonably costly, but if you obtain a long term︊ schengen D visa you can easily open a bank account.
For example a digital nomad︋ visa, if you meet the requirements.
D visa is possible to apply also on the︌ general basis if you build some substance and have sufficient savings/income.
You might also want︍ to look into UAE golden visa.
Why EU? I would just go with IBKR, probably.
How would they even find out? But note that you would have to︁ file things for the freelance visa as well.
I know some people were asked to︂ file a UBO report including an organizational chart. For a freelancer! You will be dealing︃ with people with very low education, mostly from South Asia and the Philippines.
You would︄ have to check if you have to file corporate tax returns for the freelancer visa,︅ and you would also have to check if you have to register for VAT, or︆ if you can opt out somehow.
I really would recommend you to reach out to︇ other traders and just see what they do, how they are set up and why.︈
I would︌ rule out Estonia, but I know that Cyprus especially is very popular. Probably Malta would︍ work as well, and maybe also Portugal with the right structure.
I have heard that︎ you can even combine Cyprus with residency in Austria, but I don't remember the details.️
I also don't know how easy it would be for you to obtain residency there without an EU passport.
I believe some of them don't have capital gains tax? But maybe it's different with active trading.
In theory, it shouldn't be foreign income if you run things from that country, but in practice, especially less developed countries (Malaysia, Thailand for example) don't enforce this and will often treat all income︀ as foreign if it comes from a company that is registered abroad.
How would they even find out? But note that you would have to︁ file things for the freelance visa as well.
I know some people were asked to︂ file a UBO report including an organizational chart. For a freelancer! You will be dealing︃ with people with very low education, mostly from South Asia and the Philippines.
You would︄ have to check if you have to file corporate tax returns for the freelancer visa,︅ and you would also have to check if you have to register for VAT, or︆ if you can opt out somehow.
I really would recommend you to reach out to︇ other traders and just see what they do, how they are set up and why.︈
I would︌ rule out Estonia, but I know that Cyprus especially is very popular. Probably Malta would︍ work as well, and maybe also Portugal with the right structure.
I have heard that︎ you can even combine Cyprus with residency in Austria, but I don't remember the details.️
I also don't know how easy it would be for you to obtain residency there without an EU passport.
I believe some of them don't have capital gains tax? But maybe it's different with active trading.
In theory, it shouldn't be foreign income if you run things from that country, but in practice, especially less developed countries (Malaysia, Thailand for example) don't enforce this and will often treat all income︀ as foreign if it comes from a company that is registered abroad.
I wanted to open a bank account in a foreign country (other than UAE) to transfer funds/receive funds to/from IBKR. I don't want to use my Indian bank account directly to fund IBKR or receive funds from IBKR in it directly when I am no longer a tax resident in India. That is the reason, in one of the earlier posts, I asked about opening an account in another country without being a resident there. [Did not want to use UAE banking]
I explored Portugal D7 visa requirements. The monthly income requirements are low, I thought of using my savings (which can last 3 years according︀ to cost of living estimates) as proof instead of frequent monthly income. D7 visa also︁ allows me to work or start a business without any restrictions.
I know a CA︂ in UAE who should be able to help me out with the VAT/accounting/audits/freelancer visa etc.︃ I reached out to couple of Indians there who are trading on their personal accounts︄ from a long time. However, I guess in the past, it did not matter as︅ there was no corporate/income tax. Not sure if license requirements may change in the future︆ after introduction of corporate tax.
I explored Portugal D7 visa requirements. The monthly income requirements are low, I thought of using my savings (which can last 3 years according︀ to cost of living estimates) as proof instead of frequent monthly income. D7 visa also︁ allows me to work or start a business without any restrictions.
I know a CA︂ in UAE who should be able to help me out with the VAT/accounting/audits/freelancer visa etc.︃ I reached out to couple of Indians there who are trading on their personal accounts︄ from a long time. However, I guess in the past, it did not matter as︅ there was no corporate/income tax. Not sure if license requirements may change in the future︆ after introduction of corporate tax.
@PhantomOf ThePits had a good list earlier:
But please read my post here
You first need to become resident outside India to︂ even be considered by any bank that will be in business for a bit longer.︃ Then, you can open the accounts and hope that they accept you. You may have︄ better chances with a bank in the country of your residency then elsewhere.
But please read my post here
You first need to become resident outside India to︂ even be considered by any bank that will be in business for a bit longer.︃ Then, you can open the accounts and hope that they accept you. You may have︄ better chances with a bank in the country of your residency then elsewhere.
Most people use personal accounts with Proof of Address somewhere else and me + 3 others I know have large enough balances that we use 'classic' offshore corps to have them separated from us.
2 Seychelles, 1 Belize, 1 Cayman.
I know around 15 people full time traders counting myself.
2 Seychelles, 1 Belize, 1 Cayman.
I know around 15 people full time traders counting myself.
I doubt anyone pays CIT on trading activity in Dubai. I mean, they'll probably be happy to take your money, but I don't think it's necessary.
For full time traders trading from UAE in their own personal accounts with personal funds, (stocks, equity derivatives, futures, options), do you think a license is required for this? Do any of those traders that you know have an explicit license for this?
With your offshore corporation, what is the︀ total tax percentage on your profits? Do UAE authorities know the type of activity carried︁ out by offshore corp or do they just know that you own an entity?
With your offshore corporation, what is the︀ total tax percentage on your profits? Do UAE authorities know the type of activity carried︁ out by offshore corp or do they just know that you own an entity?
Thanks for your post.
Out of the list, IBKR is a broker and not︅ a bank. Sygnum and Aminagroup seems to accept only Swiss residents to open an account.︆ Could not open the swissquote website. Let me try the others.
I will become a︇ non-resident of India (NRI) once I stay outside India for more than 182 days a︈ year. At that time, it is legal and allowed to open a bank in a︉ foreign country. Yes, assuming that I migrate to UAE and reside there, the local banks︊ would allow me to open a bank account there. I, however wish to maintain my︋ funds in a bank outside UAE for safety and access concerns. Hence, I asked people︌ in the forum if I can pass KYC checks of foreign banks (non-UAE, non-Indian) while︍ residing full time in UAE. I would then be able to transfer funds from it︎ to/from IBKR.
Out of the list, IBKR is a broker and not︅ a bank. Sygnum and Aminagroup seems to accept only Swiss residents to open an account.︆ Could not open the swissquote website. Let me try the others.
I will become a︇ non-resident of India (NRI) once I stay outside India for more than 182 days a︈ year. At that time, it is legal and allowed to open a bank in a︉ foreign country. Yes, assuming that I migrate to UAE and reside there, the local banks︊ would allow me to open a bank account there. I, however wish to maintain my︋ funds in a bank outside UAE for safety and access concerns. Hence, I asked people︌ in the forum if I can pass KYC checks of foreign banks (non-UAE, non-Indian) while︍ residing full time in UAE. I would then be able to transfer funds from it︎ to/from IBKR.
Should be possible. Maybe, they changed it
In any case, I would recommend Swissquote. They︇ probably blocked India. Be prepared to be rejected unless you are no longer a resident︈ in India, they must follow the rules.
In any case, I would recommend Swissquote. They︇ probably blocked India. Be prepared to be rejected unless you are no longer a resident︈ in India, they must follow the rules.
I will check with other UAE based traders.
As you mentioned in another post "how will they even find out", my broker︀ (Ex. IKBR) might report my yearly profits or total balance to my country of residence︁ (Ex. UAE) as part of CRS. Then, it is anyone's guess what they might do︂ with that information.
As you mentioned in another post "how will they even find out", my broker︀ (Ex. IKBR) might report my yearly profits or total balance to my country of residence︁ (Ex. UAE) as part of CRS. Then, it is anyone's guess what they might do︂ with that information.
i have no idea
Nobody cares honestly, most of us are out of UAE most of the time anyway so enforcement is quite difficult.
I dont understand the question, can you rephrase it please︀
No to︂ both, nobody knows nothing besides me.
Nobody cares honestly, most of us are out of UAE most of the time anyway so enforcement is quite difficult.
I dont understand the question, can you rephrase it please︀
No to︂ both, nobody knows nothing besides me.
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