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Old 22.10.2017, 18:07
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Dividend Withholding on ETFs bought at London Stock Exchange

I was thinking about buying an ETF at London Stock Exchange because it is not listed on SIX. I heard that UK is not witholding dividends at source. Is this also the case for foreign investors? It is a Ireland domiciled ETF, so if im right there is also no stamp duty to be paid? My broker is DEGIRO. Anything else to pay attention?
Thanks for your replies.
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Old 22.10.2017, 21:05
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Re: Dividend Withholding on ETFs bought at London Stock Exchange

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I was thinking about buying an ETF at London Stock Exchange because it is not listed on SIX. I heard that UK is not witholding dividends at source. Is this also the case for foreign investors? It is a Ireland domiciled ETF, so if im right there is also no stamp duty to be paid? My broker is DEGIRO. Anything else to pay attention?
Thanks for your replies.
Ireland does not usually impose withholding tax, however many of the dividends paid to the fund already have been taxed & this can't be reclaimed.
UK is irrelevant for an Irish domiciled investment.
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Old 22.10.2017, 23:56
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Re: Dividend Withholding on ETFs bought at London Stock Exchange

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many of the dividends paid to the fund already have been taxed & this can't be reclaimed.
I know, ireland though has the best double taxation agreements with most european countries (5-6% aprox.) I was actually talking about the dividends paid out by the fund. The ETF i wanted to buy is also listed at the german stock exchange, where i think 15% would be withheld at source, if i'm right. so buying it at london stock exchange would be an advantage i think.


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UK is irrelevant for an Irish domiciled investment.
If i buy US-domiciled ETFs at NYSE its clear that 15% is withheld at source (with W8-Ben). Who is finally withholding the dividend if i buy Ireland domiciled ETFs at an european stock exchange (Frankfurt or London)? It should be the country in which i buy the stock/fund. So either UK or Germany, right?
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Old 23.10.2017, 03:50
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Re: Dividend Withholding on ETFs bought at London Stock Exchange

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I know, ireland though has the best double taxation agreements with most european countries (5-6% aprox.)
Are you sure you're reading your data right? 0-5% is typical IE withholding tax when IE companies pay out to most countries, but the case that you're probably more interested in is the other way around, and there the number you'll typically encounter is 15%. The agreements are often not symmetrical between countries.

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I was actually talking about the dividends paid out by the fund. The ETF i wanted to buy is also listed at the german stock exchange, where i think 15% would be withheld at source, if i'm right. so buying it at london stock exchange would be an advantage i think.

If i buy US-domiciled ETFs at NYSE its clear that 15% is withheld at source (with W8-Ben). Who is finally withholding the dividend if i buy Ireland domiciled ETFs at an european stock exchange (Frankfurt or London)? It should be the country in which i buy the stock/fund. So either UK or Germany, right?
You still don't get it, do you? Country of the exchange doesn't really matter, but rather the domicile of the company or fund. You can buy Apple stock on SIX, LSE, DAX, NASDAQ, etc it doesn't matter it's still exactly the same stock of an american company that will pay one way or another 15-30% to the IRS.
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Old 08.11.2017, 10:34
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Re: Dividend Withholding on ETFs bought at London Stock Exchange

I also have a question regarding dividends but don't want to trash forum with a similar topic.

I have two USA domiciled ETFs. I'll have around 100USD dividends this year and 15% was already withheld by the US - i can see it in Degiro. CH tax on dividends was not withheld. Do I have to do this after 31. December in my tax declaration and notify Basel Stadt authorities? I have B visum. It's a ridiculous sum but I don't want to get into troubles.
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Old 08.11.2017, 12:44
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Re: Dividend Withholding on ETFs bought at London Stock Exchange

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I also have a question regarding dividends but don't want to trash forum with a similar topic.

I have two USA domiciled ETFs. I'll have around 100USD dividends this year and 15% was already withheld by the US - i can see it in Degiro. CH tax on dividends was not withheld. Do I have to do this after 31. December in my tax declaration and notify Basel Stadt authorities? I have B visum..
Only if you have the obligation to file a tax declaration. Such as due to 120k+ salary. A small dividend by itself does not raise the obligation. The threshold in Basel is 1700 CHF non taxed at source income - https://www.google.ch/url?q=https://...b1JM53QZsYZfFn

Even if you file it's not certain you'll owe any taxes net, as you can then claim double taxation relief and swiss tax rate is likely lower than 15% for a low earner
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