You have to invest in Canadian domiciled ETFs to avoid US estate tax.Just to add to this you can advoid the US estate tax by using a canadian based broker, as Canada does not have this. Questtrade(one of the top brokers there) also provide accounts to Irish residents and accept USD transfers via TransferWise.
For a monthly longterm investor it is a pain tracking it, especially if your buying more than 1 etf per month.Is this really less complex than EU ETFs and deemed disposal?
Either way you end up having to do an annual tax return, either way you have to track your purchases/sales in a spreadsheet (which would make deemed disposal calculations fairly trivial), this route you have to deal with DWT/W8 forms, currency risk, risk of possible changes to the taxation in two jurisdictions, risk the broker stops allowing this and US estate tax risk.
This approach might be more tax efficient (with added risk), but I think the complexity of deemed disposal is quite exaggerated (online generally, not by you specifically).
Thanks I have seen those approaches. It would remove the us estate tax and the risk of the US broker preventing me purchasing US ETFs.Check Europoor.com for a guide on how to buy US ETF's using CFD's from Europe, great blog resource...
Double check what you read though, you have been warned... get more posts by hitting Blog in the top right
Just to add to this you can advoid the US estate tax by using a canadian based broker, as Canada does not have this. Questtrade(one of the top brokers there) also provide accounts to Irish residents and accept USD transfers via TransferWise.
Just to add to this you can advoid the US estate tax by using a canadian based broker, as Canada does not have this. Questtrade(one of the top brokers there) also provide accounts to Irish residents and accept USD transfers via TransferWise.
If you read the thread above you will see this doesnt help and you still have a libility for the withholdings taxWould love to hear more about this if anyone has done it, was it easy etc?
From the discussion above I understand the key would be to invest in Canadian domiciled ETFs rather than just use a Canadian broker to purchase US domiciled ETFs
Just the thorny issue of the exposure to US Estate Taxes at a marginal rate of up to 40% with no credit against Irish CAT for some Irish residents.
If you read the thread above you will see this doesnt help and you still have a libility for the withholdings tax
Just the thorny issue of the exposure to US Estate Taxes at a marginal rate of up to 40% with no credit against Irish CAT for some Irish residents.
Thanks for the clarification.Sorry miss read the comment. If it's non us domiciled, regardless of where it invests your not liable for US estate tax, assuming your not a US resident/national
But presumably if they do that it can only be for newly purchased etfs after they change the rule, they cannot have gross roll up for etfs already purchased under the existing regime ?I was speaking to a tax consultant yesterday and she said Revenue are considering rolling back on their previous e-brief and taxing non-EU ETFs under the gross roll up regime.
so much for progress - buying a flight to Australia in the morning!
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?