In most territorial tax jurisdictions, is crypto day trading considered foreign-sourced income?

Tax and legal
1

If I move to a territorial tax jurisdiction and earn money by frequently buying and selling cryptocurrency from home, would that income typically be considered foreign-sourced if the exchange and banks I use are located in a different country?

If that income isn’t considered foreign-sourced, what if I create a company (an investment firm) in a country with 0% corporate tax and then receive dividends from that company while living full-time in the territorial tax jurisdiction—would that change whether the income is now considered foreign-sourced?

4

  1. Yes, that would be considered income if its day trading and that is primary source of income then you will taxed as per normal income tax rules.

  2. Yes, that’s how most people do it. Establishing a corporate structures in favourable tax jurisdictions. With that being said, due to the proliferation of tax havens simple corporate structures like the one you described above would still be liable for taxation due to permanent establishment.
    You’d need a complex structure to avoid triggering permanent establishment in unfavorable tax jurisdiction.
    Please consult a tax attorney.