As UK expat now living in a country with no CGT or income tax, without foreign income tax treaties, it’s very inefficient for me to even consider shares or ETFs where dividends are taxed at source.
Even investing in an ETF domiciled in Ireland only reduces the US withholding tax on dividends from 30% to 15% and, well, 15% is 15% more than I would pay if I invested in an ETF which ONLY bought into companies which reinvested such income into its future expansion or into share buybacks.
Over the longer term this would make a HUGE difference and is stopping me from investing anywhere but the UK which will not withhold anything at all, leaving me to sort out in my very benign jurisdiction.
Sure the UK charge 0.5% stamp duty at the time of purchase, but if I wanted to avoid this there are many other exchange worldwide where this is not the case.
If I’m correct, then I should be able to find an ETF entitled something like (jokingly) “S&P 500 no dividends”.
Am I missing something obvious here or am I on to something? It’s preventing me from spending anything at all in the US market.