Debt: None
Tax Filing Status: International gains/dividends/interest is non taxable for Jordan-residents
Tax Rate: 0%
State of Residence: Jordanian residing in Jordan (no tax treaty with the US)
Age: 28 / Single
Desired Asset allocation: 70% stocks / 30% bonds
Desired International allocation: 50% of stocks, 50% US
Income and savings in USD.
I've been discussing non-resident alien (NRA in IRS terms) with fellow Bogleheads. I also consulted a tax attorney. US-domiciled ETFs are not NRA friendly. Estate tax can be as high as 50%. Tax withholding might need filing for tax returns even if I'm not a US citizen or resident. The recommendation was Ireland-domiciled ETFs.
Currently, I am thinking about the following portfolio structure:
- 30% in iShares US Aggregate Bond UCITS ETF (IUAG) | USD | Distributing | 0.25% expense ratio
- 60% in iShares Core MSCI World UCITS ETF (IWDA) | USD | Acc | 0.20% expense ratio
- 10% in iShares Core MSCI Emerging Markets IMI UCITS ETF (EIMI) | USD | Acc | 0.25% expense ratio
I had to accept the 0.25% expense ratios and the tax withholding leakage given that I am a NRA with no tax-treaty.
Questions:
- For a USD based portfolio constructed with Ireland-domiciled ETFs, are there better alternatives than the ones listed? Lower expense ratio / lower tax withholding leakage alternatives?
- Is VWRD better than IWDA + EIMI? If so, why?
Link to previous discussion:
viewtopic.php?f=1&t=159867