How Ireland-Domiciled ETFs Help You Keep More of Your Investment Returns
If you’re investing in US-domiciled exchange-traded funds (ETFs), you may be incurring more taxes than necessary. This includes popular ones like QQQ or VOO whose dividends are generally subject to a 30% US dividend withholding tax for Singapore investors.
This means that for every US$1 of dividend your ETFs distribute, you will receive only US$0.70 of it. The remaining US$0.30 goes to Uncle Sam.
There is a relatively simple way to reduce this tax exposure, and that’s through investing in Ireland-domiciled ETFs.
⚠️ Investing involves risk and Sethisfy.com is not liable for any loss, financial or otherwise. You are encouraged to exercise due diligence when signing up for any financial product, or investing based on the materials published on this site. None of the content here should be construed as financial advice.
What are Ireland-domiciled ETFs?
As the name suggests, Ireland-domiciled ETFs are funds which are set up and registered in Ireland. Due to a tax treaty between US and Ireland, the dividend withholding tax for such ETFs is 15% instead – half of the 30% US-domiciled ETFs are subject to.
The “Ireland” in the name, however, does not mean that the underlying components are Irish companies. In fact, many Ireland-domiciled ETFs track things like global and US indices – things that you may already be investing in.
Popular US ETFs and their Ireland-domiciled equivalents
For instance, if you are someone who is bullish about the S&P 500, you may already have invested in funds like VOO or SPY. The Ireland-domiciled CSPX can give you similar exposure while reducing your dividend withholding tax.
Here are some popular US ETFs and their Ireland-domiciled alternatives:
| Exposure | US-domiciled ETF | Ireland-domiciled |
|---|---|---|
| S&P 500 | VOO or SPY | CSPX |
| Nasdaq-100 | QQQ | CNDX |
| Global Equities | VT | VWRA* |
These are not specific recommendations but just a few examples of popular US-domiciled ETFs at their Ireland-domiciled alternatives.
How much difference can you expect?
Assuming a US-domiciled ETF and Ireland-domiciled ETF both distribute a 1.5% dividend yield each year, an investor’s US$100,000 investment should receive US$1,500 a year before withholding taxes.
- US-domiciled ETF: you receive US$1,050 after 30% withholding tax
- Ireland-domiciled ETF: you receive US$1,275 after 15% withholding tax
At a hypothetical 6% annual price growth, a US$100,000 investment in an Ireland-domiciled ETF with 1.5% dividend yield can grow to US$578,713 over 25 years. With a US-domiciled ETF, the same parameters would result in US$549,119 – a difference of US$29,593.
Depending on your portfolio size, investment time horizon, and dividend yield, the difference can compound significantly over time.
Not all investment platforms can access Ireland-domiciled ETFs
Ireland-domiciled ETFs are often listed on the London Stock Exchange (LSE), and are therefore not accessible to all investment platforms.
Personally, I use Interactive Brokers (IBKR) for my LSE investments. I will have a fuller review of IBKR soon, so stay subscribed for that, but in the meantime you can check out a couple of guides I’ve written for the platform:
Another benefit of Ireland-domiciled funds: sidestepping US’s estate taxes
An additional advantage of investing in Ireland-domiciled ETFs is the ability to avoid US-imposed estate taxes.
Singaporean investors who are neither US citizens nor residing in US may be subject to estate taxes when their investments in US-situated assets – including US-domiciled funds like VOO or QQQ – exceed US$60,000. Amounts above US$60,000 may be taxed progressively up to a staggering 40%, and could be a huge cost for the investor’s beneficiaries upon his/her passing.
Meanwhile, investors who invest in Ireland-domiciled ETFs are generally considered to have invested in non-US situated assets. They therefore do not fall within the scope of US estate tax.
Subscribe for more deals and updates!
When it comes to long-term investing, costs and taxes can quickly add up especially if your portfolio becomes larger. Reducing such exposure hence becomes increasingly important when your investments grow in size.
If you’re someone who wants to earn more from credit cards, savings accounts and other financial deals, stay subscribed to the Telegram or WhatsApp so you can be notified of news and deals. Remember to unmute and turn on notifications or the updates may not reach you.
Seth Wee was a licensed financial adviser representative from 2009 to 2025, with over 16 years of experience in Singapore’s financial advisory industry.
He started Sethisfy.com in 2019 to share practical insights on credit cards, banking products, and miles strategies, helping readers identify financial products that deliver the best value. Seth has been featured in CNA, Channel 8, Today, and a host of other publications. In 2025, he was also part of a panel at CPF’s Ready For Life festival.
Subscribe to the channel for free updates!
Disclaimer: I may receive an affiliate/referral fee when you sign up for services/products on this site, and such fees keep the site running. I would only recommend services/products I would personally use or recommend to my own friends and family, but I do not provide any warranty or guarantee for the quality of these services/products. Thank you for supporting my site!
Please exercise due diligence when signing up for any service/product as I will not be liable for any personal loss, financial or otherwise. Content published here are my sole views and personal opinion, and none of the information here constitutes personal financial advice nor represents the views of my employer(s).