Is It Possible To Avoid Paying Tax On Gains?

I Want you to Pay Taxes

I Want you to Pay Taxes

More and more governments are applying aggressive pressure on offshore ´tax havens´, and countries that aid the reduction, avoidance and evasion of paying tax on your personal, business and capital gains.

So, how can you still escape paying tax, or at least, reduce the amount you have to pay? There are options you can explore, so lets take a brief look at some of them……

On a very simplistic level there are some gold coins that you can buy free of tax and sell free of capital gains tax, see later articles on the subject of buying gold & silver. Another big tax saving in the UK at least is that you save around 40% on the cost of your home if you “build it yourself” or if you are technically hopeless employ tradesmen to do it for you. The great thing is there is no tax on the capital gain on the sale of your own home and therefore its worth the effort and you get to live in a much nicer house than if you were buying from someone else.

On a more global scale, the first, is to be that tax exile you always dreamed of becoming, particularly if your loyalty and commitment to one specific country is not too strong. Being a tax exile in certain countries will mean you are only answerable to the behaviour of tax and legal systems of that one country, only paying tax on your earnings in that country. For foreigners, this can include developed nations such as Britain, as well as those nations a little further off the international radar.

Obviously, take advice from experts in your own country. Uncle Sam wants all US citizens taxed on their worldwide income, however there are tax breaks for those living abroad. Tax rules change, and only you, and your advisor know all your circumstances.

The natural relative to the tax exile, is the P.T. (Perpetual Traveller, Permanent Tourist or Prior Taxpayer), or perhaps more simply, Tax Nomad. If you spend only long enough (normally no more than 90 days a year in any country) to have no major interests there, you therefore, are not liable to the financial limitations imposed by that nation.

A further point to note, is the role played by your partner in all this planning. Your marital status and partners situation is vital when dealing with tax issues, and expert advice is a must, especially when exploring the possibility of becoming a tax exile, and maximising tax benefits.

Yourself and your financial health – maintain a wealthy distance!

If you have large investments and assets, then consider placing them in the hands of a trust, trustee or company based in a tax haven. These havens, although under increasing pressure to ´tow the line´ from the aforementioned governments (namely US, and those in the EU), do still exist, so check out the likes of The Cayman Islands, Belize, and even Dubai and Hong Kong to see if they can shelter your interests and gains.

How to protect yourselves

There are people and companies scamming $millions from unsuspecting clients everyday. Tips
to minimize the risk of this happening are mostly founded in common sense.

As ever, when looking to invest, complete thorough ´due diligence´. Is the company reputable? Are they registered in a country which has strong financial regulation? Google reviews online, and see what people say. Remember, if it seems to good to be true, it probably is, and NEVER buy investment from someone who phones you out the blue.

Finally, do not let greed cloud your natural intuition.

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