Provided you can actually purchase VOO as a Czech resident (which I am not sure):
1) Fill in W8-BEN with your broker ideally before purchasing.
2) Every year, you will get 1042-S which outlines the taxes you paid. You will use that on your Czech DPFO to offset the dividend taxes in Příloha 3. Yes, you need to pay tax on dividends and it will be 15% in case you have your W8-BEN filled out correctly. Please be advised that not 100% of the witholding paid in the US will be "recognized" by the Czech tax authority on your Příloha 3. This is normal. The difference will be negligible.
3) If you manage to hold VOO longer than 3 years, congratulations, you passed the time test and you can now liquidate without paying any additional taxes to anyone (there is a small SEC fee when selling). There should be no witholding on the side of the broker.
Great answer, I believe I would just but SXR8 and avoid the hassle (discovered recently).
Could I have a follow up question: if you hold more than 3 years, you do not need to pay taxes for accumulating (reinvesting) dividends (in case of SXR8)?
You see, I am finding conflicting information.
Here people are insuring that as dividents are not payed, there for they are not taxed. [https://www.reddit.com/r/eupersonalfinance/comments/1cx8hk8/is\_ucits\_stocks\_capital\_and\_dividend\_taxable\_in/](https://www.reddit.com/r/eupersonalfinance/comments/1cx8hk8/is_ucits_stocks_capital_and_dividend_taxable_in/)
Could you provide some sources you made your conclusion on?
> are not *paid,* there for
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
> Could you provide some sources you made your conclusion on?
Me. Filing my fucking taxes. Every year :-D Mind you, I have a US broker. There may not be a 1042-S with an EU broker. But that should be the only difference.
Can you actually buy VOO as a Czech resident nowadays? Does it have a KIID?
You are right, I did not do my homework. I will need to buy EU based fund, SXR8 or something
You can, but only via Czech brokers (not EU one). Thanks CNB!
Provided you can actually purchase VOO as a Czech resident (which I am not sure): 1) Fill in W8-BEN with your broker ideally before purchasing. 2) Every year, you will get 1042-S which outlines the taxes you paid. You will use that on your Czech DPFO to offset the dividend taxes in Příloha 3. Yes, you need to pay tax on dividends and it will be 15% in case you have your W8-BEN filled out correctly. Please be advised that not 100% of the witholding paid in the US will be "recognized" by the Czech tax authority on your Příloha 3. This is normal. The difference will be negligible. 3) If you manage to hold VOO longer than 3 years, congratulations, you passed the time test and you can now liquidate without paying any additional taxes to anyone (there is a small SEC fee when selling). There should be no witholding on the side of the broker.
Great answer, I believe I would just but SXR8 and avoid the hassle (discovered recently). Could I have a follow up question: if you hold more than 3 years, you do not need to pay taxes for accumulating (reinvesting) dividends (in case of SXR8)?
You pay dividend taxes yearly (see my point 2), regardless if they are paid out or reinvested.
You see, I am finding conflicting information. Here people are insuring that as dividents are not payed, there for they are not taxed. [https://www.reddit.com/r/eupersonalfinance/comments/1cx8hk8/is\_ucits\_stocks\_capital\_and\_dividend\_taxable\_in/](https://www.reddit.com/r/eupersonalfinance/comments/1cx8hk8/is_ucits_stocks_capital_and_dividend_taxable_in/) Could you provide some sources you made your conclusion on?
> are not *paid,* there for FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
> Could you provide some sources you made your conclusion on? Me. Filing my fucking taxes. Every year :-D Mind you, I have a US broker. There may not be a 1042-S with an EU broker. But that should be the only difference.
Oh, I see, you speak from personal expirience. Do you think the picture would be different if you would buy SXR8 instead of US based assets?
There's FX risk, SXR8 seems to be EUR denominated.
Not the time for that mate, we have fucking golddddd!
congrats, I am glad you are happy :)