'Ditch high-GST economies, invest where capital gains tax is zero': Financial expert shares global strategy to beat tax traps

Financial advisor Akshat Shrivastava has laid out a bold, unconventional strategy for professionals seeking to maximise their earnings and reduce tax burdens—legally. In a recent post, he encouraged working professionals and mid-career earners to consider managing their income, investments, and spending across different countries for optimal financial efficiency.

“When you earn, go to a 0% income tax country. When you invest, choose a capital gains tax-free country. And when you spend, do so in a low-GST country,” Shrivastava said, adding that while this lifestyle requires effort, the rewards can be significant. “It’s not easy—but if you believe it’s possible, your mind starts showing you the way.”

According to Shrivastava, countries like the UAE and Monaco allow residents to legally avoid income tax altogether. “People are surprised to learn that you can actually earn your full salary without paying income tax. All it takes is a change in location,” he said.

Once income is secured, Shrivastava suggests investing in countries that don’t tax capital gains, such as Singapore or the Cayman Islands. “Your wealth compounds far better when you don’t have to give up 10% or 15% of your returns each year,” he added.

India, by comparison, levies a 10% tax on long-term capital gains (LTCG) above Rs 1 lakh. For example, an investor making Rs 4 lakh in LTCG (approximately $50,000) would pay around Rs 5,000 in tax. While India does offer certain exemptions and deductions to reduce the taxable amount, Shrivastava says the overall burden still makes other countries more attractive.

“In places like Singapore and the UAE, capital gains are entirely tax-free,” Shrivastava noted. “That’s a huge reason why entrepreneurs and investors prefer setting up operations there.”

In the United States, capital gains tax follows a progressive structure. Investors with long-term capital gains up to $4,000 pay 0%, after which the rate rises to 15% and then 20%, depending on income. “If your income is modest, you could end up paying no capital gains tax at all,” he pointed out.

Countries like Australia, the UK, and Canada impose moderate capital gains taxes ranging from $2,300 to $33,500, depending on the bracket. Shrivastava sees these as middle-of-the-road options for those seeking a balance between regulatory stability and reasonable taxation. “They’re not tax havens, but they aren’t overly punishing either,” he said.

When it comes to spending, Shrivastava recommends countries where indirect taxes like VAT or GST are low, ensuring your money stretches further. “Why live in a high-GST economy when you can spend less and live better elsewhere?” he asked.

He emphasised that this strategy is not about tax evasion, but smart, legal financial planning. “You’re not breaking laws—you’re optimising your life across global systems.”

Shrivastava believes most people don’t realise this lifestyle is even possible. “They live in default mode, accepting high taxes, limited options, and financial stress. But your mind is a compass. Point it toward freedom, and you’ll find a way.”

As digital mobility grows and more Indians enter remote-first professions, Shrivastava’s message could resonate with a generation increasingly looking beyond borders—for work, wealth, and freedom.