For investors outside the United States, an S&P 500 ETF listed in the U.S. and an Ireland-domiciled UCITS version can have very different tax costs. This free calculator estimates the yearly difference in dividend withholding tax and fund fees, and shows the potential U.S. estate tax exposure of holding U.S.-domiciled ETFs.
Irish vs. U.S.-Domiciled ETF Cost Comparison
| Estimated yearly cost | U.S.-domiciled ETF | Irish-domiciled ETF |
|---|
Estate tax estimate uses the U.S. rate schedule for non-resident aliens with the $60,000 exemption (a $13,000 credit), assuming this is your only U.S.-situs asset and no estate tax treaty applies. It ignores deductions, other assets and treaties. Dividend figures assume the fund holds U.S. stocks. Your home country’s taxes are not included.
What the Calculator Compares
- Dividend withholding: with a U.S. ETF, the U.S. withholds tax at your personal rate (30% without a treaty). An Irish fund generally suffers 15% on U.S. dividends inside the fund, and Ireland does not withhold further tax from non-Irish investors.
- Fund fees: U.S.-listed ETFs are often slightly cheaper.
- Estate tax: U.S.-domiciled ETFs are generally U.S.-situs assets for non-resident aliens, with only a $60,000 exemption. Irish-domiciled ETFs are generally not.
For a full explanation, read Irish vs. U.S.-Domiciled ETFs: A Guide for Non-U.S. Investors.
Important Limitations
- Treaty rates, estate tax rules, and exemptions can change and depend on your residence and citizenship.
- Some countries have estate tax treaties with the U.S. that change the outcome.
- Your home country may tax foreign funds, dividends, or gains in ways that matter more than U.S. taxes.
- For decisions involving significant amounts, consider advice from a qualified cross-border tax professional.
Learn More
This calculator is for general educational purposes only. Results are estimates based on the numbers you enter and simplified assumptions; they are not financial, investment, or tax advice. See our Disclaimer.