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It is a smart move to think about investing if you’re a digital nomad. One of the ways that come up often is dividend investing.
Today we are covering this interesting and useful topic of dividend investing for digital nomads and global investors and entrepreneurs.
In lots of the world dividends are taxed favorably and this is one of the main advantages for this type of investing. Another advantage is the cashflow that you get from dividends.
But is this the best way to go? Should you be doing dividend investing? Are there better options for you?
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Author: Michael Rosmer
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May I ask which investments are good? I've been looking at a few different ones but want others' opinions as well..
Now please make a video about countries and strategies that you can offer to hopefully avoid that withholding from the IRS since most people invest in U.S. companies that generally offer dividends.
Great Video Michael 👍
Would you recommend U.S LLC for UAE resident? Purpose is to sell digital products. Licenses here are so expensive!!!
Have you done a video on private placement life insurance?
Exactly my strategy, if the market is down just make a margin loan (very easy to do with IBKR) and once it's back up start selling a portion of your stocks.
As a digital nomad the day I "retire" somewhere (not in the sense I'll stop working but I'll rely a bit more on capital gains) then I'll just make small margin loans each month instead (buy/borrow/die) to avoid taxation.
There is no withholding taxes on ASX dividends for non residents if they are fully franked. Having said that I rarely invest in companies that have dividends. I usually like to have a buffer of two to three years of living costs so that I am not a forced seller at the wrong time. Take some off the table then when times are good.
If I hold S&P ETFs (as a UK tax resident, non US national), can the dividends be withheld at 15% in the US ?😧
But does the US withhold taxes on dividends paid by foreign companies? I thought it's only US companies stocks.
I found a lot of countries that have either 10% or 15% withholding tax because of a double tax agreement with the US:
10%: for example Japan, Bulgaria, Mexico, Romania
15%: For example: Australia, Barbados, Cyprus, Czech Republic, Denmark, Estonia, Indonesia, Ireland, Italy,Lativa, Luxemburg, Malta, Switzerland, Thailand, South Africa … and lot more
But which of those countries have a low tax rate on foreign dividends as well in addition to the good double taxation treaty on US dividends? Can anyone here recommend a country to move to if you invest almost exclusively in US dividend stocks?
Currently I pay 25% in Germany. Anything below that would be beneficial to me.
Thanks!
That polo top is a very flattering colour for you. Whats that colour called? Testicle beige? No offence.
For US nomads, avoiding non-US tax residency and qualified dividends are a $40k tax break on top of the $112k FEIE. An S-Corp & the $12,500 standard deduction can get you to $165k a year income tax free. The socials could also be avoided with the right structure.
Interesting video. I'm a Canadian tax resident and sort of perpetual traveller. So for now the dividends are working but maybe in the future if I actually somewhere else I might need to switch the plan up a bit
I know 'long term growth investment' right now may be equal to blasphemy to some folks, but it beats dividend investment strategies by a mile over longer horizon. Today and the coming months are best time to invest when you can get some stocks at up to 95% discount. Amazon stock was $10 in 2002 and over $3760 in 2021.
microphone clipping
Portugal do taxes dividends (domestic or foreign). Kindly correct the video.
Sellingz covered calls can also be a great alternative to dividends, you can even combine both.
Selling covered calls can also be a great alternative to dividends, you can even combine both.
Great topic. What about royalties, and global passive income investors looking at non US assets?
Great topic and one I will watch again as capital gains tax rates lower than dividend tax rates in some cases.
Actually, over the very long term, dividends will provide up to 50% of your return.
06:04 This might be a mistake. The withholding rate for Portugal is 15%. The lowest rate for retail is 10% in places like Bulgaria. Otherwise, the 5% rate is only if you own a large stake.