Would appreciate some advice about investing in individual European stocks. My aim is to earn some money that is taxed at income tax rates. I am not in employment so currently pay no income tax, and can therefore take advantage of Ireland's very low tax rate on low to medium income. Currently my only income is from deposits which are taxed at 45% (including PRSI) on every cent. For the same reason I have no interest in ETFs with their 41% exit tax.
So my thought is to buy a range of dividend-paying European equities, probably following the components of an index like the Euro Stoxx 50, but buying the stocks myself instead of the index. The thing I am not sure about is the complexity of withholding tax on this. The Stoxx 50 equities are spread around a number of eurozone countries plus the UK, and Switzerland. From what I have read online it sounds like each country applies its own withholding tax, and I may have to apply for refunds from each. (I understand that some of it can be written off against Irish tax liability, but not always all of it, depending on country, from what I've read).
Am I understanding this right? Might my broker (Saxo UK) be able to do something to simplify it? I've a further question about shares traded on multiple exchanges. Suppose I buy a Swiss share on a German exchange (there are specific examples, like Nestle and Novartis). Do I pay Swiss or German withholding tax. Are there any implications for dividend payments?
So my thought is to buy a range of dividend-paying European equities, probably following the components of an index like the Euro Stoxx 50, but buying the stocks myself instead of the index. The thing I am not sure about is the complexity of withholding tax on this. The Stoxx 50 equities are spread around a number of eurozone countries plus the UK, and Switzerland. From what I have read online it sounds like each country applies its own withholding tax, and I may have to apply for refunds from each. (I understand that some of it can be written off against Irish tax liability, but not always all of it, depending on country, from what I've read).
Am I understanding this right? Might my broker (Saxo UK) be able to do something to simplify it? I've a further question about shares traded on multiple exchanges. Suppose I buy a Swiss share on a German exchange (there are specific examples, like Nestle and Novartis). Do I pay Swiss or German withholding tax. Are there any implications for dividend payments?