Non-USA Citizens investing in USA Stock Market

[galeno]

Everybody pays level 1 withholding taxes on dividends.


Using Ireland domiciled ETFs USA-NRAs pay 15% on USA equity dividends. 7.5% on non-USA developed equity dividends, and 11.2% on EM equity dividends.


Using USA domiciled ETFs a USA person pays 0% on USA equity dividends. Non-USA and EMs are the same.


If a USA person holds these USA domiciled non-USA equities in a taxable account, he can get a partial refund of these taxes by getting a "qualified dividend tax credit".

[Alan]

Quote:

Originally Posted by Totoro One example: CUSIP 922908769 is Vanguard VTI. I can buy those through two different brokers (and have in fact owned it). So I don't understand your / Nuns comment about not being able to buy those. One clearly can. At least in Europe mainland.

Quote:

Originally Posted by Alan Here is a list of HMRC Reporting funds, which includes all/most of Vanguard's ETF's https://www.gov.uk/government/public...eporting-funds In preparation for our move to the UK I have converted our VG MF's to VG ETF's.

I probably wasn't clear in my post. I didn't say that you can't buy VG ETF's once you are non-resident, but that I converted my existing VG Mutual Funds to ETFs before moving to the UK. That way the UK IRS won't treat them as PFICs.

I fully intend to continue to purchase VG ETF's while resident in the UK.