Capital Only generating investments

[c177fan]

I am considering retiring in a jurisdiction which does impose capital gains tax.

I am researching what investments would be best to take advantage of this. Any dividends would be taxed as normal.

Any ideas are appreciated

[EthicsGradient]

Not that I can really help, but should that read "...which does not impose ..."?

[c177fan]

oops .. should of read the preview more closely .. thanks

I am considering retiring in a jurisdiction which does edit: NOT impose capital gains tax.

I am researching what investments would be best to take advantage of this. Any dividends would be taxed as normal.

Any ideas are appreciated

[Dod101]

I cannot say that allowing tax to influence investment decisions has ever been a very good idea in my experience. Invest as you normally would and feel happy about not being taxed on capital gains. Or, of course, invest only in growth shares. Some years you may do well; in others, like the year just ending you will not. In other words, ignore the tax conditions and just invest in whichever way you feel most comfortable.

Dod

[Tedx]

I havent checked for a good while but I think Portugal has a 10 year tax incentive plan (which may include CGT) for people wishing to move there from abroad.

Cyprus too might be worth checking out.

[Lootman]

I havent checked for a good while but I think Portugal has a 10 year tax incentive plan (which may include CGT) for people wishing to move there from abroad.

Cyprus too might be worth checking out.

I believe that Portugal no longer offers that generous tax deal, due to a change of government a year or two ago.

If you go to Trustnet you can see all UK funds there. You can also sort them by any column heading including dividend yield. By so doing you can sort all the 0% yield funds at the top, enabling you to easily see them and decide.

For example, doing that for investment trusts I see the following zero yielders:

Herald
Smithson
North Atlantic Smaller Companies
BG US Growth
Edinburgh Worldwide
Allianz Tech
Biotech Growth
Blue Planet
Shin Nippon
and so on

[monabri]

All very well retiring to these places but make sure about health provisions! I wonder where c177fan is thinking of?

[1nvest]

retiring in a jurisdiction which does not impose capital gains tax.

I am researching what investments would be best to take advantage of this. Any dividends would be taxed as normal

My no yield portfolio, comprised of thirds each Berkshire Hathaway (BRK), Markel (MKL, sometimes referred to as being baby BRK), and Gold. Benchmarked to HYP (Terry's TJH HYP (calendar year accumulation))


+15% for 2022, barely matching RPI, so not a good year, but could have been worse (might have lagged inflation)

From 1997 to the end of 2021 (no TJH HYP 2022 calendar figures yet available), 11.5% versus 9.5% (TJH-HYP) annualised accumulation gains.

[c177fan]

Interesting data and some food for thought .. many thanks

.. I was thinking Guernsey or Alderney (no housing restrictions) but houses are not cheap .. trying to value the upsides .. tax is 20% so not too bad especially if not UK domicile funds/shares

[1nvest]

Interesting data and some food for thought .. many thanks

.. I was thinking Guernsey or Alderney (no housing restrictions) but houses are not cheap .. trying to value the upsides .. tax is 20% so not too bad especially if not UK domicile funds/shares

May be wrong (too lazy go google), but didn't Alderney more recently (a number of years ago??) start levying its own property taxation and become more 'self funding', that previously used to go to (and be funded by) Guernsey/Jersey? There's also health insurance costs, and cost of regular flights/travel.

Factor in 20% tax, 5% property tax (??), paying health insurance and it might all add up to not really being a wise choice. Inheritances can pretty much vanish quite quickly nowadays with self-funding old-age care (homes), where £1K/week is ... cheap. Capital and income taxes can be sheltered in the UK (there are strategies even to migrate capital from the likes of SIPP into ISA (combinations of leveraged long and short stocks (and some bonds)).

Become a nomad as a possible alternative. spring/summer in UK, 4 months, another 4 months in each of another two (Portugal/Tenerife (EU) and East (Singapore) or S America)) chase pleasant weather - and as-is save on energy costs.