Minimizing Tax on Investment Portfolio

[fgbs2021]

Hi

I'm new here and trying to learn from all the threads, but still a bit lost.

I’m trying to find a way to minimize capital gain tax and income tax from my stock/reit/crypto portfolio or even find a tax free alternative.

I’ve been in the stock market for the long run, investing monthly for years.

I’m from South America, but I currently live in Ireland where I pay lots of tax, 33% CGT and 40% Income Tax on dividends, after having already paid 40% on my source income!

I’ve read about some folks setting up companies in the Caribbean, like BVI, Panama and Belize to avoid taxes, but it seems that lately they have been having issues with their Broker wanting to close their accounts. Also saw some people talking about Cyprus as an alternative in Europe. I wonder if any of these are viable solutions?

I’m looking for a tax efficient way to invest my money, receive some dividends and sell some stock once in a while, without the gov taking a big bite of my returns. Ideally paying low or no tax if possible. Any suggestions?

Thanks in advance!

 

[CyprusLawyer101]

Hi there,
It is indeed possible to achieve a much better result than the one you are mentioning. As you are receiving multiple type income ( dividends, capital gains etc) from multiple sources ( stock, reits, crypto) you should look to assess a jurisdiction which can provide you the overall best result. Extra considerations you need to assess when implementing a new investment structure, is potential exit taxes when transferring assets out, future exposure to CFC rules and potential tax charges on getting the income into your hands from the company abroad. You mention Cyprus, which seems to be meeting your overall requirements, however you need to plan carefully. Let me know if I can help.
BR,
Lawyer101

 

[backpacker]

Also saw some people talking about Cyprus as an alternative in Europe. I wonder if any of these are viable solutions?

Cyprus has a very narrow definition of the word "securities" which has been discussed here https://www.offshorecorptalk.com/threads/cyprus-company-non-dom.35313/#post-192109 (post #6 and #7) . Asses your portfolio accordingly and approach with care.