Setup a trading company in low tax countries?

hiya,

I want to setup a trading company in low lax country and I need help. I’m ready to leave Europe’s high tax counties, so I can save more. Anyone have idea or experience about this? If you can’t write here, please PM me instead. If its cost for me, please PM me the cost of your advise. I can pay by bitcoin after setup is finished.

thnx

Did I read this right? You want to set up a trading company, as in you??

How is this possible when all of your other posts are asking questions based on understanding the fundamentals on how to actually trade in the first instance?

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I learned how to trade and I’m profitable in a specific strategy that I managed to create it now.

Right, ok, and this was the question you just posted a few hours ago? Perhaps you mean you want to open an offshore account, not a company!! In which case the tax all comes back to the UK anyway, regardless of the location of your broker.

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hiya,

There is few possible legal scenarios:

  1. I leave the UK for whole tx year. So I will not tx in UK based on circumstances.
  2. I leave the UK and sometimes come to visit London :slight_smile: then back to my new country. So I will not tx based on circumstances.
  3. I stay in UK but there is possibility that still not tx in UK, based in circumstances. (Hardest scenario in implementation)
  4. I leave the UK to new country and will not coming back. :slight_smile: (Easiest scenario in implementation)

I’m looking someone expert that can advise me on above?

thnx

Ahhhh yes, hope springs eternal

The Never Hopeful VIPER

@campione you mentioned living in the UK. Have you considered spread betting?

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hiya,

Spread betting price is not like spot Forex, its managed internally by broker. I’m not sure if I can win a position in spot Forex, I can win the same in spread betting(if I open both positions at once in two different broker, one spread betting and one ECN), as in spread betting, spread go so wide sometimes and I will be out of margin. I’m not sure there is enough liquidity in the spread betting for my positions or not. When I tried spread betting, positions remain open for some time and will not filled in millisecond. When position filled, because spread is wide, I lose lots of money. There is no spread betting in ECN with tight spread and real liquidity provider price, as far as I know, but I hope it was.

thnx

Hi Campione,
I am no expert, but I have worked in 7 countries, and paid tax in five of them. I have also set up 3 offshore companies in the past, and liquidated two of them. Truth warning here - I am pretty old.
I also used to be friendly with an international tax consultant when I were younger.

Anyway, before you go to the expense of setting up an offshore company, find out from the horses mouth here (call HMRC) to clarify your tax position with regard to forex trading here. The last time I looked, trading profits are exempt from income tax for UK tax residents (most of us) in the same way as trading losses cannot be offset against your taxable income.

And for the record, if you set up an offshore company and failed to report it to the HMRC as a UK resident, you would break the law. One thing I have learned over about 40 years being overseas then resident again, doing stuff legally is cheaper and more straightforward than any other way. I am not suggesting you intended to do anything illegal, but for the maintenance of an offshore company, and assuming you would be paying 20% UK income tax, you would need to be profiting more than about £20K per year to make it worth your while. It would be a shame to spend £4K or so setting up an offshore company only to realize that it was not necessary to do so.
I hope you get some good advice, and best of luck with the trading.

just get Bitcoin and trade forex cfd which use Bitcoin as a collateral and to settle p&l.
then get tax residency in Germany. if you hold your Bitcoins for a year, cashing them out will be tax free. AFAIK.

of course this include the added Bitcoin’s volatility risk in the equation.

Good idea. LOL. I just realized when I answered this last night it is 3 years old. Doubt our answers will help anyone after that length of time. :frowning: