EU-based Boglehead investor planning to move to Taiwan in the next few years. I’m very interested in knowing if there are other like-minded investors on the island, and what brokerages you use, special tax laws one should pay attention to, and also what you have on your portfolios.
are you moving here permanently ? or just for a few years?
the local investment scene is not too friendly for foreigners ( lack of English interface, relatively high fees, relatively speculative local stock market ) , i would not suggest to tie too much of your portfolio to the local market.
interactive brokers is probably the user friendly option here.
I can still use Vanguard and Fidelity but I have heard that living abroad you run the risk that they’ll cash you out and send you a check. We’ve kept the same address via US inlaws and a google phone number. I think Vanguard is probably a better deal than anything local. I have other advice as a US investor (whenever we go back to the States we invest in a roth, etc.), but probably not applicable to you. I do mutual funds and avoid ETFs.
Don’t take my word on this, and definitely check with an accountant/tax specialist, but word on the forum is that you don’t need to report annual gains on foreign investments under 1 million NTD, and you don’t pay tax on gains from foreign investments under 6 million NTD. It’s never sounded right to me, but there you go.
From Taiwan, it makes sense to keep investing into Ireland-based ETFs (unless you’re also a US citizen - that would be a really really bad idea and might even make you liable for penalties in some cases!).
Taiwan doesn’t have a double-taxation treaty with the US, so all dividends from the US would be subject to 30% withholding tax. On the other hand, Ireland does have one, so all the Irish funds benefit from reduced US withholding taxes.
Buying US-based funds would especially be a bad idea if you planned to return to Europe because they come with some bad tax implications (and lots of bureaucracy) there from what I have heard. Also, you might become subject to US estate taxes… (though I am honestly not sure if that would also be the case when having a US broker such as IBKR or just holding individual US-listed stocks…)
Personally, I just keep using my German broker to buy ETFs using a savings plan every month. Although switching to IBKR would probably be more cost effective. But I don’t need to worry about taxes if I should need to return to Germany on a short notice because the broker would handle them (unlike IBKR). For me, that’s a big advantage!
I remember a while back that at the individual level for longterm investors it was better to kind of “set and forget” with mutual funds, but doing a quick search I can see how etfs could have some benefits. I do think I’d be more tempted to trade with etfs, so I’m going to stick with mutual funds.