ETFs, following for example the US stock markets, are often offered domiciled in Ireland because of favorable taxation conditions. Is there an equivalent thing for individual stocks? Say I want to buy some stock, for example Netflix, I would have to look into the local (in this case US) taxation law to see whether they are acceptable. I also have to find out whether it means I have file for US taxes. It would be easier if the same principles that apply to ETFs would also apply here. Does a similar mechanism exist?

P.S. I happen to be a French tax resident at the moment.

1 Answer 1


This might point you in the right direction: in the US, if you want to buy shares of a foreign stock you look to see if there's an "ADR" on a US stock exchange for that foreign company; you don't pay foreign taxes.. For example, my ex-wife owns ADRs in the Dutch company Ahold Delhaize, and got (I don't know what happens now) a dividend check from them every year.

We paid US income tax on those dividends.

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    ADRs are supposed to be subject to issuer-country tax by withholding and that has happened on every one I've held as a US individual at a (well-known) broker. On my statement I saw dividend +$x then withholding -$fractionofx every time. If your ex held directly (at the ADR level) the depository should have done that. (In contrast cap gains are taxed by the holder's jurisdiction.) Jun 11, 2021 at 4:53
  • @dave_thompson_085 interesting. The amounts were so small, I mat not have noticed it.
    – RonJohn
    Jun 11, 2021 at 5:09

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