It is not just charges that count, taxes count too. There are three different levels of taxation possible on an ETF - see the excerpt from the article below.
Can anyone advise, the best country for a fund to be domiciled in, if you are an Irish investor investing in a broad European fund via your pension.
In particular which domicile is better US, Luxembourg, France, Germany or Ireland?
http://citywire.co.uk/wealth-manager/how-will-tax-hit-your-etf-holdings/a592964
Can anyone advise, the best country for a fund to be domiciled in, if you are an Irish investor investing in a broad European fund via your pension.
In particular which domicile is better US, Luxembourg, France, Germany or Ireland?
http://citywire.co.uk/wealth-manager/how-will-tax-hit-your-etf-holdings/a592964
There is a hierarchy of three levels of tax to consider when investing in funds and ETFs.
First is within the ETF itself. The investment the fund is making in equities or fixed income and where those securities are domiciled relative to the domicile of the fund will impact on the taxes on income or capital gains within the fund.
Then there is tax relating to where the fund is domiciled. This will have an impact on the type and level of tax the fund might incur in the country in which it is domiciled.
At the investor level, tax on income and capital will be determined by the domicile of the investor and the type of investor, based on where the fund is domiciled, registered for sale, and the type of tax reporting undertaken by the fund.
Withholding tax inside a fund may be on income or capital gains. How these taxes are determined is based on the framework of tax treaties between the country where the fund is domiciled and the country where the fund’s investments, equities or fixed income securities are domiciled.