A German citizen is looking for a place to trade forex as his only means of income.
Some countries, even those with no capital gains tax, consider day trading as a profession and therefore tax the gains as normal taxable income.
Are there any exceptions to this rule around the world? Is there a country that treats day trading solely as capital gains? Could one theoretically start a company (essentially like an offshore hedge fund), buy into the company at the beginning of the year, engage in forex trading through the company and sell (cash out) at the end of the year? This would appear to be a long term investment which would not be taxed in a capital tax-free country and taxes would only (if at all if the country considers the trading to be taxable income or not) be taxed at the corporate level. Would this theoretically work?
I am planning on consulting a tax advisor, but this is just to get the proverbial juices flowing. One country my wife and I are considering moving to is Mauritius. Does anyone have any experience dealing with tax laws over there?
Thanks!