PricingBlog & News

Are the securities used tax-efficient?

When selecting ETFs, we consider not only costs but also liquidity, counterparty risk and tax efficiency. Index funds are also used for Pillar 3a due to the tax advantages there.

In some cases, we also use ETFs domiciled in the USA, which often have very low costs and high liquidity. Customers benefit in particular from the very low bid-ask spreads.

From a tax perspective, these ETFs have the advantage that, on the one hand, the ETF itself can reclaim withholding tax on dividends and interest income from the securities it holds. On the other hand, in many cases part of the US withholding tax on distributions from the ETF can also be reclaimed (see True Wealth tax statement). It should be noted, however, that in the event of the investor's death, US securities above a certain value limit may be subject to US estate tax in certain cases.

More questions in "Taxes"

Can’t find what you’re looking for?

Contact us

Ready to invest?

Open account

Not sure how to start? Open a test account and upgrade to a full account later.

Open test account