Best country for a trader

[georgio]

Hello!

As the title suggests, I'm searching for the best country for someone that has his income primarily from trading.
I'm trading US equities (recently I've made the change to a US broker), Forex (broker regulated in Seychelles), and very few earnings from crypto (whenever there is clear momentum).

I'm based in the EU, I have a company in the UK selling software and consulting services. I would like to have trading as my primary income in 2021, without banks closing me (recently revolut closed me for having transactions with brokers).

Which country would you suggest tax-wisely, and where your income can be safe in the banks, for US equities trading and forex? (Mostly in EU)

Cheers

 

[troubled soul]

georgio said:
Hello!

As the title suggests, I'm searching for the best country for someone that has his income primarily from trading.
I'm trading US equities (recently I've made the change to a US broker), Forex (broker regulated in Seychelles), and very few earnings from crypto (whenever there is clear momentum).

I'm based in the EU, I have a company in the UK selling software and consulting services. I would like to have trading as my primary income in 2021, without banks closing me (recently revolut closed me for having transactions with brokers).

Which country would you suggest tax-wisely, and where your income can be safe in the banks, for US equities trading and forex? (Mostly in EU)

Cheers
Click to expand...

1)UAE
2)Singapore
3)Hongkong
4)SWITZERLAND
5)THE CAYMAN ISLANDS
6)BELGIUM
7)MALAYSIA

 

[georgio]

hirenshukla2017 said:
1)UAE
2)Singapore
3)Hongkong
4)SWITZERLAND
5)THE CAYMAN ISLANDS
6)BELGIUM
7)MALAYSIA
Click to expand...

Thanks for your insight!

UAE: I've heard things like when starting a company, a local has to possess more than 50% of the company, and Islamic accounts (for forex trading).. Those would not apply to me, but in general when I hear about such things I would be a bit scared to entrust my funds there.. (unless if it is possible for banking in other countries)

Hongkong: Would avoid for now because of the tensions in the area.

Belgium: Didn't expect it, why is that?

The rest of the options seem valid for me.

What about Cyprus? Couldn't find info online about that, and not sure if you have to pay the "military" tax they have.. Malta as well could be an option?

 

[troubled soul]

UAE freezone does not required partner. Do research .I think UAE is most underrated in this area.

Belgium isn't exactly a low-tax country, even as far as Europe goes, but it's zero capital gains rate in most cases is one of the best in Europe. The Netherlands also does not tax investment returns, but it does impose a sort of wealth tax on investments.

Capital gains tax (CGT) is charged at the rate of 20% on gains arising from the sale of immovable property in Cyprus or the sale of shares of companies which own immovable property in Cyprus. Gains from the sale of shares listed on any recognisable stock exchange are excluded.

 

[georgio]

hirenshukla2017 said:
UAE freezone does not required partner. Do research .I think UAE is most underrated in this area.

Belgium isn't exactly a low-tax country, even as far as Europe goes, but it's zero capital gains rate in most cases is one of the best in Europe. The Netherlands also does not tax investment returns, but it does impose a sort of wealth tax on investments.

Capital gains tax (CGT) is charged at the rate of 20% on gains arising from the sale of immovable property in Cyprus or the sale of shares of companies which own immovable property in Cyprus. Gains from the sale of shares listed on any recognisable stock exchange are excluded.
Click to expand...

Indeed, need to research more about UAE. Regarding Cyprus, the 'Gains from the sale of shares listed on any recognisable stock exchange are excluded' means that shares from Nasdaq/Nyse are not taxed? For Forex which are CFDs I guess it's different than the shares..

 

[troubled soul]

uhy.com.cy/cyprus-tax-system-summary-of-benefits/
deloitte.com/content/dam/Deloitte/cy/Documents/tax/CY_Tax-Facts-2020EN_Noexp.pdf

These will help

 

[nomad999]

Also Thailand has great banking options i believe which dont ask too much questions, and no tax on foreign income if not remitted in the country during the year its earned.

 

[rafaelsan]

UAE definitely makes the list. Heard positive feedbacks from traders in that region.

 

[daxbr]

hirenshukla2017 said:
uhy.com.cy/cyprus-tax-system-summary-of-benefits/
deloitte.com/content/dam/Deloitte/cy/Documents/tax/CY_Tax-Facts-2020EN_Noexp.pdf

These will help
Click to expand...

"

This page doesn't seem to exist."​

 

[daxbr]

hirenshukla2017 said:
1)UAE
2)Singapore
3)Hongkong
4)SWITZERLAND
5)THE CAYMAN ISLANDS
6)BELGIUM
7)MALAYSIA
Click to expand...

If one does it professionally and use Internet, network latency needs to be considered. In that case, none of the Asian locations are acceptable. Europe is borderline and Caymans should be solid.
https://www.dnsstuff.com/network-latency

 

[nomad999]

daxbr said:
If one does it professionally and use Internet, network latency needs to be considered. In that case, none of the Asian locations are acceptable. Europe is borderline and Caymans should be solid.
https://www.dnsstuff.com/network-latency
Click to expand...

Which kind of pro trading would require low latency and what latency would you consider acceptable ? I am guessing below 100ms ?

 

[kinglion]

daxbr said:
If one does it professionally and use Internet, network latency needs to be considered. In that case, none of the Asian locations are acceptable. Europe is borderline and Caymans should be solid.
https://www.dnsstuff.com/network-latency
Click to expand...

if you are not using algos, any decent internet connection should be enough.

 

[daxbr]

nomad999 said:
Which kind of pro trading would require low latency and what latency would you consider acceptable ? I am guessing below 100ms ?
Click to expand...

Yes. I should probably add that some Asian and US brokers provide dedicated lines from major hubs.

 

[Clip]

daxbr said:
Yes. I should probably add that some Asian and US brokers provide dedicated lines from major hubs.
Click to expand...

For algo trading you need 4 or event 0.1. Depends if you are doing HFT or arbitrage

Toggle signature
Expat in Hong Kong - There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt. - John Adams

 

[kinglion]

daxbr said:
Yes. I should probably add that some Asian and US brokers provide dedicated lines from major hubs.
Click to expand...

Arent they expensive as f***?
you could pay for an dedicated server. It will be much cheaper

 

[FuturesBod]

Georgio - PM me. (seems I need 30 characters to post that!)

 

[fortunespeculator]

nomad999 said:
Also Thailand has great banking options i believe which dont ask too much questions, and no tax on foreign income if not remitted in the country during the year its earned.
Click to expand...

Isnt it true that without a job or letter we cant open bank accounts in Thailand easily anymore.Has anyone opened a bank account without an employer letter in Thailand recently.

 

[daxbr]

fortunespeculator said:
Isnt it true that without a job or letter we cant open bank accounts in Thailand easily anymore.Has anyone opened a bank account without an employer letter in Thailand recently.
Click to expand...

Poems th used to be available for foreigners.

 

[georgio]

kinglion said:
if you are not using algos, any decent internet connection should be enough.
Click to expand...

Decent internet without disconnections is enough.

 

[georgio]

GiGoGo said:
For algo trading you need 4 or event 0.1. Depends if you are doing HFT or arbitrage
Click to expand...

My algo trading has not worked yet, but even if (or when?) it works, I would use a server for that.