Thanks folks. I have carefully followed the other AAM threads on ETFs, especially
this one (here), which you all (and I) contributed to, and also
landlord's summary of investment costs thread (here). Until now I thought I had finally understand all of that, which is why I started this separate thread to ask specifically about dividends and withholding tax. As I mentioned, I have no other income and so can earn up to several tens of k from dividends before average tax rate goes above 20%, even including USC and PRSI.
Brendan, thanks for relating your experience. That concords with what I've read. As far as I know, French shares are the same as your German ones -- more is withheld than is credited by Revenue here, so you have to apply for a refund from France. So I could end up having to do this for several countries. I'm finding it hard to believe that it's so complicated. Do Irish people not have diversified portfolios in general? I understand that this would be simpler with Irish shares, but the ISE has a much more limited range of stocks. Also, my current exposure to stocks is in a single company on the ISE and I would like some diversification. (EDIT: I see you added a link to a thread about French withholding tax, thanks; I had read that previously and it was the last post in that thread that led me to wonder if my broker might be able manage all the withholding and refunds. However, my broker's website (Saxo) implies that it is my responsibility to deal with claiming from foreign tax authorities myself).
landlord, thanks for that list of ETFs. I presume in order to qualify for CGT rates on gains and income tax on dividends, those would have to be so-called "bad" ETFs? But they seem to be Euro-area ones, so why are they "bad". Is it because they are not on the ifsra list? I'm confused again. (Btw, your
list of investment costs, which I thought I'd understood, has been very useful).
Marc, many thanks for your very generous offer. I have to say, I would prefer to be in a situation to understand and manage all this myself. (I'm trying to lay the groundwork for that here, for when my 2012 deposits at good rates all run out over the next year or so. I am not anxious to dive into markets immediately anyway given current turmoil). What does it mean to be "geared to Income tax and capital gains tax and [be] based on collectives"? Does
collectives refer to UCITS, and are they not all taxed at 41% under gross roll-up and deemed disposal?