# Trading stocks, etc in Dubai (Capital Gains)



## propilotdave (Dec 4, 2011)

Hello, this is my first post and I am excited to join this expat community! 
Question: I am an active stock/commodity trader, when I become a resident is there a way to set up an account in country, trade internationally and have the benefit of local tax law, regarding Capital Gains. Any insight or resources to this effect will be greatly appreciated. 

Cheers, D


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## R_Smithy (Jun 13, 2010)

propilotdave said:


> Hello, this is my first post and I am excited to join this expat community!
> Question: I am an active stock/commodity trader, when I become a resident is there a way to set up an account in country, trade internationally and have the benefit of local tax law, regarding Capital Gains. Any insight or resources to this effect will be greatly appreciated.
> 
> Cheers, D


Hi Dave, Welcome to the forum. I think its going to make a big difference depending on what country you were originally from. I have read that if you are from the U.K and become non resident you have to still pay capital gains tax for 5 years after you become a non resident. These UK laws are being reviewed in March 2012.


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## propilotdave (Dec 4, 2011)

*Capital gains*

I am coming from the US...any insights applicable to me are appreciated.

D


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## R_Smithy (Jun 13, 2010)

propilotdave said:


> I am coming from the US...any insights applicable to me are appreciated.
> 
> D


This question interests me as well as I trade stocks/forex. I am not sure how you stand coming from the US. What I think you need to do is set up a company in the UAE so you Trading profits arent classed as capital gains. You can set up businesses in the freezones with companies like VZ and creative zone, the problems is they dont set up financial companies. I need to look into this in greater detail once I arrive.


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## fcjb1970 (Apr 30, 2010)

Capital gains earned on the USA stock market is going to be considered money earned in the USA. Does not matter where you live., you will have to pay taxes on that income.

In all seriousness, this is not the type of question I would rely on an open forum to find the answer. Speak with a tax attorney specializing in this before you decide what to do. The risk is too high if you are wrong.


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## R_Smithy (Jun 13, 2010)

fcjb1970 said:


> Capital gains earned on the USA stock market is going to be considered money earned in the USA. Does not matter where you live., you will have to pay taxes on that income.
> 
> In all seriousness, this is not the type of question I would rely on an open forum to find the answer. Speak with a tax attorney specializing in this before you decide what to do. The risk is too high if you are wrong.


Fcjb, thats not correct. There are professional trading companies in dubai trading the USA stockmarkets and are not paying taxes to the USA goverment. I agree with you about contacting a tax attorney about this matter, if its not set up correctly it could be very costly in the future.


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