Foreign buyers of US stocks are subjected to withholding tax on dividends paid by those stocks. In the absence of a tax treaty, the rate of tax is 30%. With a tax treaty, the rate is lower, something like 15%.
What are some strategies for minimizing the impact of withholding tax for non-US investors holding US-based securities paying dividends. Is it best to avoid dividend-paying US-domicile stocks? Are there index fund options that avoid dividends and focus on capital gains? Are there better places to hold the same company to avoid the withholding tax?
Bottom line, how do people outside the US maximize returns?
thanks.
Submitted May 15, 2017 at 10:16PM by DrunkenGolfer http://ift.tt/2qlTc4O
