Investing in VWRA

For residents of the United Arab Emirates.
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Investor9196
Posts: 2
Joined: Sun Jun 05, 2022 12:15 am

Investing in VWRA

Post by Investor9196 »

Hello ,
I am a new entrant to this forum , am trying to get into ETF,s and have a few queries

I am a Indian expat living in the UAE , looking to invest in VANGUARD VWRA which was recommended to me by a friend . However being new in terms of investing in International funds and hence confused , need some clarity before investing . Starting off With basic questions !

Purpose of investing is for saving up for university education for my daughter who is 11 now .


1) Being an Non resident Indian in UAE , is there a any tax implication in India for any income arising out of investing in the ETF

2 ) is there any tax implication on my investment
(I understand that VWRA is domiciled in Ireland and have been told that there is no tax issues but have read up quite a lot of stuff which instead of clarifying has actually confused me 🙂)

3)Any other recommendations apart from VWRA would be appreciated !!

Cheers !
TedSwippet
Posts: 5181
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: Investing in VWRA

Post by TedSwippet »

Investor9196 wrote: ↑Sun Jun 05, 2022 12:47 am I am a new entrant to this forum , am trying to get into ETF,s and have a few queries
Welcome aboard.
Investor9196 wrote: ↑Sun Jun 05, 2022 12:47 am 1) Being an Non resident Indian in UAE , is there a any tax implication in India for any income arising out of investing in the ETF
Most countries don't tax you when you do not live there (the exceptions being the US and Eritrea).

Assuming India is the norm, and that you meet the conditions for being an Indian non-resident, then as long as you remain outside Indian residence you should be clear of Indian taxes -- with the proviso that I'm not an Indian citizen, so no direct experience. In case it helps (and since you are not an Indian resident then it may not!), we have a wiki page on investing from India, and targeted at Indian tax residents:

Investing from India - Bogleheads

Perhaps of most use if you expect to return to India but will continue to hold VWRA or other Ireland domiciled or non-India domiciled funds or ETFs?
Investor9196 wrote: ↑Sun Jun 05, 2022 12:47 am 2 ) is there any tax implication on my investment
(I understand that VWRA is domiciled in Ireland and have been told that there is no tax issues but have read up quite a lot of stuff which instead of clarifying has actually confused me)
Assuming no lingering tax connections to India, then no, as a UAE resident there should be no tax issues for you when investing through VWRA, and it is a good suggestion from your friend. This section of our wiki tries to cover this area:

Nonresident alien investors and Ireland domiciled ETFs - Bogleheads
Ireland applies no taxes of any kind on non-Irish residents who hold Ireland domiciled ETFs. Ireland domiciled ETFs are therefore completely 'tax transparent' to investors, making them preferable to US domiciled ETFs for investors in any country with poor or no US tax treaty coverage, and often acceptable to investors even in countries with good US tax treaty coverage.
Can you say what you have read that you found confusing?
Investor9196 wrote: ↑Sun Jun 05, 2022 12:47 am 3)Any other recommendations apart from VWRA would be appreciated !!
This wiki page offers several suitable ETF suggestions:

Simple non-US portfolios - Bogleheads

Or for more background information and fund and ETF ideas, see the complete non-US investor's section of the wiki:

Outline of non-US domiciles - Bogleheads
Last edited by TedSwippet on Wed Jun 08, 2022 6:59 am, edited 1 time in total.
Topic Author
Investor9196
Posts: 2
Joined: Sun Jun 05, 2022 12:15 am

Re: Investing in VWRA

Post by Investor9196 »

Hey TedSwippet,
Thanks for the Welcome and what a welcome :!: in terms of your prompt and pointed responses .
Well I usually find time during the weekends so will be getting into the links you have provided and then would like to respond (rather more
queries :D ) thereafter

Thanks a lot for the effort and will surely come back by this or the following weekend

Cheers
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