Hi all
We know that buying an Us Stockes ETF USxxxxxxxxx from the NYSE and declaring it in the DA1 form we can retrieve the withholding tax on the dividend (basically a reduction on the amount of taxes due)
are there other countries to which Siwtzerland has a double taxation treaty? Before doing any research I was hoping somebody already did the gorundwork
Particularly I’m interested in the UK, Japan, Germany etc. So that Ideally you could buy 5/6 ETF and replicate the Dev World index by using proxy for the different countries. So 55% the USxxxxxxx , 9% JAP ETF JPxxxxxx etc.
Do we know for which countries we can purchase ETF at the local stock market?
Probably you pay way more fees to buy a JPxxxxx at the Tokio Exchange that I don’t know if it is worth it
with VT you get only the US withholding tax, so more or less 55% with the DA1. There are money lost in taxes from dividend distribution from companies not in the US bought by the US-etf
I use VTI for the moment so that I get the most tax efficient ETF. I was wondering if Switzerland has double treaty that works in a similar way with other countries.
The US also concluded a lot of treaties, which are maybe or maybe not better than Switzerland.
For example: If a US ETF buys a UK stock and receives dividends. The ETF provider will beneficiate from the treaty concluded between the US and the UK. In the end, you will indirectly beneficiate from this treaty.
In this case, if the US/UK and CH/UK treaties are the same, there is no advantage to buying the stock directly on the UK market
This area is very tricky and unless you managed millions, I wouldn’t bother with that.
Did you dig further into this? I’m starting to check value investing and will have to do my homeworks.
Current interest is Japan, France and Germany. I didn’t even quickly googled yet as I wanted to see if you did some ground work in the end #lazyweb
With the exception of the US, most other countries represent a rather small percentage in world indexes and on average they tax less than the US even with the treaty. If I recall correctly it’s on the order of 8-10% in aggregate
Sure, you can go ahead and buy a tax optimal ETF for each market you can, but you will very quickly hit diminishing returns with this strategy and your time is much better spent doing something else.
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