When you live in a country that does not tax passive foreign income, could it still make sense to invest into stocks using a company (or some other vehicle) instead of under your own name?
For example, I guess it might be easier to sell a holding/investment company, instead of selling all assets individually that it holds?
And at least one other benefit I could think of is that when there is no double-taxation agreement with the US, the US withholding tax on dividends paid by American corporations is 30%, while most DTA's allow for a reduced tax rate of 15%.
But then again, in order to be eligible for treaty benefits, you'd probably need some substance etc., which would increase the associated cost. So it probably only makes sense when you make several tens of thousands of dollars in dividends per year.
Anything else I've missed?
For example, I guess it might be easier to sell a holding/investment company, instead of selling all assets individually that it holds?
And at least one other benefit I could think of is that when there is no double-taxation agreement with the US, the US withholding tax on dividends paid by American corporations is 30%, while most DTA's allow for a reduced tax rate of 15%.
But then again, in order to be eligible for treaty benefits, you'd probably need some substance etc., which would increase the associated cost. So it probably only makes sense when you make several tens of thousands of dollars in dividends per year.
Anything else I've missed?