I only have UK REITs in an ISA at the moment.

Can I get exposure to other countries REITs directly or indirectly without withholding tax being taken at the source?

I want to increase diversification in this asset class to reduce risk, but also to be tax efficient to have good expected returns.

  • without withholding tax being taken at the source Why is that an issue ? Are(Will be) your withholding tax in millions of £ ? – DumbCoder Feb 14 at 8:39
  • @DumbCoder does it need to be millions of £ to make it worth considering? – rdans Feb 14 at 10:23
  • @rdans I would think so. E.g. US. REIT dividend income is 30%. And I don't think they dish out high dividends. So unless and until your total dividend income is in high 000s or in millions not sure how the OP assumes the withholding tax will affect him. If he shows a calculation of how it is affecting his returns that might be more easier. – DumbCoder Feb 14 at 12:46
  • I’m 27 and have been investing for 3 years with a long term outlook. I have 10k in uk REITs 10k in global growth stocks 10k in value stocks and 20k in saveing to be invested I currently save 12k a year and plan to invest most of it long term. – Malcolm Smith Feb 18 at 20:50
  • if I stay invested for 30 years and globule REITs offer say 4% then it’s 2.8% after %30 with holding tax and in 30 years it’s 1.028^30 = 2.3 vs 1.04^30 = 3.2 times and I would have made about 40% more all else being equal. (3.2-2.3)/2.3 – Malcolm Smith Feb 18 at 21:05

U.S. citizens can claim a U.S. tax credit for foreign tax withheld. So look for tax credits available in your country.

And here is a UK link:

https://www.gov.uk/government/publications/calculating-foreign-tax-credit-relief-on-income-hs263-self-assessment-helpsheet/hs263-calculating-foreign-tax-credit-relief-on-income-2017 .

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