- 15% of the gains for selling stocks without a treaty
15% of the dividends from stocks without a treaty
I don't pay taxes on non distributed dividends(pending confirmation but let's assume that for this post)
- If I Pay 20% of income tax in the foreign country I pay nothing to Argentina.
If I Pay 10% of income tax in the foreign country I pay 5% to Argentina.
If I Pay none of income tax in the foreign country I pay 15% to Argentina.
Investing in VWRD in IB costs me 15% per dividend. Paidto Argentina.
Investing in an Irish accumulating ETF costs me 0%. But I'll pay 15% on the gains when I sell.
It seems pretty clear that I have to go the accumulating ETF route so that the dividends can compound before paying taxes. Right? Right?
But I have two "concerns":
- That works fine during the accumulation phase, but then when I start living off the protfolio, I wouldn't benefit from having part of the withdrawal money available already thanks to the dividends. Compounding interests are worth this little issue, right?
- I have to pay 10 dollars per month in IB as a maintenance fee. Commissions are deducted from those 10 dollars. But if I don't get dividends,
I'll need to have money not invested in the account to make sure the fee gets paid. If I go the distribution route, I can reinvest dividends with those ten dollars I have to pay anyway, but the tax savings will be greater than 120 dollars so I guess it is not a good reason to go for VWRD. And 120 dollars is not a lot of money to have un-invested