The common saying is that the Singapore dollar is the soundest currency (don’t know why). Also the Swiss Franc might be ok. I am interested in opening a foreign account like I have one in Germany. There, I can pretty much buy most stocks or get interest on the cash balance.
What I am trying to find out for years, is if it is correct that one can pay taxes on the stock gains in the local currency. This is what I read years ago. What that means is, that if I have a stock which gains 500 Euros but $1500 in dollars (because the Euro went up during this time), I would only have to pay tax on the 500 Euros (~$650) and not on the $1500. This would prevent you from paying taxes just because the dollar is collapsing, even if you don’t have a real gain.
Of course, if the Euro drops this rule goes against you. Although, I saw one article that referred to IRS sections, that you can actually elect which method you use to pay the taxes (foreign entity (first method), or American capital gains (second method)).
I would really appreciate if anybody knows anything about this.
