How to Avoid Capital Gains Tax

How to Avoid Capital Gains Tax

How to Avoid Capital Gains Tax

Are you looking for a legal way to avoid capital gains tax?

We've compiled a list of the best countries you can move to and get rid of capital gains taxes.

Some of these countries are offering limited-time deals for those looking to get a citizenship by investment via CBI programs, if you're looking to get a second citizenship, this is undoubtedly a great time to do it.

How to Avoid Capital Gains Tax

What Are Capital Gains Taxes?

A capital gains tax is a tax on the growth in value of investments incurred when individuals and corporations sell those investments. When the assets are sold, the capital gains are referred to as having been "realized." The tax doesn't apply to unsold investments or "unrealized capital gains," so stock shares that appreciate every year will not incur capital gains taxes until they are sold, no matter how long you happen to hold them.

Day traders and others taking advantage of the greater ease of trading online need to be aware that any profits they make from buying and selling assets held less than a year are not just taxed, they are also taxed at a higher rate.

The U.S. capital gains tax only applies to profits from the sale of assets held for more than a year, referred to as "long-term capital gains." The rates are 0%, 15%, or 20%, depending on your tax bracket. Short-term capital gains tax applies to assets held for a year or less, and are taxed as ordinary income.

Taxable capital gains for the year are reduced by the number of capital losses incurred in that year. A capital loss is when you sell an investment for less than you purchased it for. The total of long-term capital gains minus any capital losses is known as the "net capital gain," which is the amount capital gains taxes are assessed on.

Source: Investopedia

How to Avoid Capital Gains Tax

The easiest way for avoiding capital gains tax is moving your fiscal residence to a country that doesn't tax capital gains, that being said, keep in mind that if you are an American citizen, you would also need to renounce your American citizenship and acquire second citizenship such as one of the citizenship by investment offered by some Caribbean nations.

We have compiled a wide list of various options you can choose from, that being said, do keep in mind that legislation is ever-changing, also, remember this is not financial advice and you should always consult with a tax professional before making any decision.

Africa: Countries With No Capital Gains Tax
  • Mauritius
  • Namibia
  • Kenya
  • Seychelles
Asia: Countries With No Capital Gains Tax
  • Bahrain
  • Hong Kong
  • Malaysia
  • Qatar
  • Singapore
  • UAE
Caribbean: Countries With No Capital Gains Tax
  • Anguilla
  • Antigua and Barbuda
  • Aruba
  • Bahamas
  • Barbados
  • Belize
  • Bermuda
  • British Virgin Islands
  • Cayman Islands
  • Dominica
  • Grenada
  • Jamaica
  • Montserrat
  • Saint Kitts and Nevis
  • Saint Lucia
  • Saint Martin
  • Saint Vincent
Central America: Countries With No Capital Gains Tax
  • Costa Rica
Europe: Countries With No Capital Gains Tax
  • Belgium
  • Monaco
  • Switzerland
Oceania: Countries With No Capital Gains Tax
  • New Zealand

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