Whats the best country for online poker?

[bluemuffins]

So, from your posts I understand taxes on online poker winnings in Costa Rica are 0%.

In Sweden taxes are 0%. Except for poker sites with servers outside the European Union. (For instance PokerStars and FullTilt. PartyPoker is unclear.) Winnings from these non-EU sites are taxed by 30%. This tax is mainly imposed to protect the government owned Swedish gambling monopoly, 'Svenska Spel' (http://www.svenskaspel.se). As I love to play at Stars I plan to leave the country in a couple of months.

Since living costs are outrageous in UK, I look for any other country in Europe with 0% taxes on Stars winnings. I would consider moving there, irrespective of the language. There has got to be a country in the Europe were you can play on Stars without paying taxes?!?

Of course, I also consider Costa Rica. This forum is starting to convince me of its benefits!

[Soulman]

This is a bit OT, but isn't the climate in CR absurdly humid and generally wet? See http://www.trycostarica.com/index.php?temp=weather.tpl for source.

[Kurn, son of Mogh]

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Even if you leave the U.S., don't you still have to pay income taxes on your gambling winnings for "X" number of years after you leave? Also, does anyone know how high "X" is?

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If you leave the US and remain a citizen, you have to pay US taxes as long as you have income. If you renounce your citizenship, you only have to pay US Income Taxes for 10 years.

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This is not true. At all.

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Please cite a reference that backs up your statement.

My understanding is that US citizens working abroad must file a US tax return. Now, the IRS allows you to offset an tax liability with foreign taxes you paid which, since most other countries have higher tax rates usually means you owe no US income tax.

@nd point. It is completely legal to rebnounce your US citizenship for tax purposes, but the IRS requires you to pay US income taxes for 10 years after you renounce, thus the same rules apply as in the above example.

These answers were confirmed by a CPA who I have known for almost 40 years. If it is wrong, direct me to a source that will correct me.

[crashjr]

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Even if you leave the U.S., don't you still have to pay income taxes on your gambling winnings for "X" number of years after you leave? Also, does anyone know how high "X" is?

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If you leave the US and remain a citizen, you have to pay US taxes as long as you have income. If you renounce your citizenship, you only have to pay US Income Taxes for 10 years.

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This is not true. At all.

[/ QUOTE ]

Please cite a reference that backs up your statement.

My understanding is that US citizens working abroad must file a US tax return. Now, the IRS allows you to offset an tax liability with foreign taxes you paid which, since most other countries have higher tax rates usually means you owe no US income tax.

@nd point. It is completely legal to rebnounce your US citizenship for tax purposes, but the IRS requires you to pay US income taxes for 10 years after you renounce, thus the same rules apply as in the above example.

These answers were confirmed by a CPA who I have known for almost 40 years. If it is wrong, direct me to a source that will correct me.

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Fair enough.

1st: The first 80k or so of foreign earned income is excluded from taxation if you meet one of two tests - the physical presence test or the bona fide residency test. There are other possibilities if you are a dual citizen or reside in a country that has a tax treaty with the US, but obviously I can't cover all of those situations here. Yes you still need to file a return, and you will still be responsible for self-employment taxes. Filing a return and paying taxes are not synonymous. Your blanket statement was not correct. See this IRS FAQ page

Point 2: Besides being rather drastic, renouncing your US citizenship does have tax consequences, and the tax consequences are complex. Whether or not you fall into the 10 year exit tax provisions depends upon your reasons for renunciation (ie if it is presumed to be motivated by tax avoidance), your 5 year tax liability for the 5 years prior to renunciation, your net worth, and your expected income for 10 years following the year of expatriation. See I.R.C. §§ 871 et seq. and pay particular attention to § 877.

Basically, this area of the law is pretty complicated and blanket statements that one thing or another will happen with respect to tax liability in a one size fits all manner are not correct. Obviously, legal advice is worth what you pay for it, even on internet message boards. Anyone considering renunciation of citizenship should consult a tax attorney in addition to a CPA. A CPA is not qualified to advise you of the legal consequences of your actions.

[Professionalpoker]

Anyone check out Isle of Man? This is the home of Pokerstar's business office.

[tarath]

edit

[coloradoslim]

soulman,
i am totally ignorant of the tax ramifications of playing from cr. to this point i have been channeling my winnings via an e-wallet to my american bank and withdrawing spending money from an atm here. i guess i better start doing my homework on the matter.

[David LoPan]

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soulman,
i am totally ignorant of the tax ramifications of playing from cr. to this point i have been channeling my winnings via an e-wallet to my american bank and withdrawing spending money from an atm here. i guess i better start doing my homework on the matter.

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lol money laundryaments

[rosso87]

has anyone mentioned australia yet?

[Grumbledook]

You obviously need to consider visa implications and how long you can stay in a country for and the situation with renewing the it.