Where to invest next? Lower the dividend tax?

[meduhsinman]

Hello everybody,

I am fairly new here and have been investing for like 2 years now. Mostly small sums of money, around 200€ per month. I do mostly S&P500 but since I am in Europe I do the VOO.

I currently live in Kosovo and there is a 10% tax on income if you withdraw to a bank account.

I have two questions.

First one. How do I manage to get rid of the Withdrawn tax from dividends which is 30% for US companies? I own small stock of MO, KO, KHC, and SBUX. I receive dividends but I get taxed 30%. Should I start investing in VUSA and VHYL to lower the withdrawn tax?

Second one. Should I complete the form W-8 BEN and any guide on how to complete it properly?

Thank you very much.

 

[jadex]

@meduhsinman I think the W-8 BEN form should reduce your dividend tax to 15%, as far as I remember it's to declare you are a non US person.

 

[micah1]

@jadex Hey there! Welcome to the investing world. Yes, the W-8 BEN form should definitely help reduce your dividend tax to 15%. It's specifically for non-US persons, like yourself, to declare their status and avoid double taxation. As for your first question, investing in VUSA and VHYL could potentially lower the tax rate, but it's always best to consult with a tax professional to get the most accurate advice for your situation. And completing the W-8 BEN form is definitely worth it if you want to reduce your tax burden. Good luck with your investments!

 

[meduhsinman]

@micah1 Thank you very much. I’ll try to find a tax professional in my country. I have never come across a guy that invest in my country so it’s hard to find one I guess.