How to Invest in International Shares From Australia (2026)

Quick answer: Most Australians get international shares through ASX-listed ETFs such as VGS or BGBL (global developed markets), IVV or V500 (US), and VGE or IEM (emerging markets). You buy them in Australian dollars through any broker, with no US tax forms. Buying shares directly on US exchanges gives you individual companies and US-listed funds, but adds a W-8BEN form, currency conversion costs, and possible US estate tax once your US assets exceed US$60,000. Watch for VTS and VEU: they trade on the ASX but are US-domiciled funds, so they carry the same US paperwork.

Three ways to own international shares

	ASX-listed, Australian-domiciled ETF	ASX-quoted, US-domiciled ETF	Shares or ETFs bought directly overseas
Examples	VGS, BGBL, IVV, V500, VGE, IEM, NDQ	VTS, VEU	Apple, NVIDIA, US-listed ETFs
Buy through	Any Australian broker, in AUD	Any Australian broker, in AUD	A broker with international market access
Currency conversion	No (the fund handles it)	No	Yes, AUD to USD and back
W-8BEN form	Not needed	Needed	Needed
US estate tax exposure	No	Yes	Yes
Tax statement	One annual statement from the fund	US-fund distributions	You record each dividend and trade

VEU, for example, is a cross-listing on the ASX of the US-domiciled Vanguard FTSE All-World ex-US ETF. IVV vs VGS vs VTS covers the domicile difference in detail.

Option 1: ASX-listed international ETFs

These are the simplest route. The fund holds the overseas shares; you hold units in an Australian fund.

ETF	What it holds	Fee (p.a.)
IVV (iShares)	S&P 500, the 500 largest US companies	0.04%
V500 (Vanguard)	S&P 500	0.07%
BGBL (BetaShares)	1,000+ developed-market companies outside Australia	0.08%
VGS (Vanguard)	MSCI World ex-Australia, 1,247 companies	0.18%
DHHF (BetaShares)	All-in-one: 40.5% US, plus Australia, other developed and emerging markets	0.19%
NDQ (BetaShares)	Nasdaq 100, tech-heavy	0.48%
VGE (Vanguard)	Emerging markets (excludes South Korea)	0.48%
IEM (iShares)	Emerging markets (includes South Korea)	0.69%

Even a "global" fund is mostly American: the US was 74.07% of the MSCI World ex-Australia index that VGS tracks at 30 September 2026. So choosing between IVV and VGS is mostly about whether you also want the other quarter: Japan, the UK, Canada and Europe. For emerging markets, see ASIA vs VGE vs IEM.

What about US tax? These funds still have US tax withheld on the dividends they receive from US companies, but it happens inside the fund. It shows up on your annual tax statement as foreign income with a foreign income tax offset, and you don't fill in any US forms. See how to read an ETF tax statement.

Option 2: buying directly on overseas exchanges

Brokers with international market access let you buy individual US companies and US-listed ETFs. Compare their international fees and currency conversion costs in our broker comparison. The extra steps:

W-8BEN form. This certifies you're not a US person, which cuts US tax on your dividends from 30% to the 15% treaty rate. A W-8BEN generally expires at the end of the third calendar year after signing, so it needs renewing.
Currency conversion. You convert AUD to USD to buy, and back to sell. Each conversion has a fee or spread, which can cost more than the brokerage itself on small trades.
Tax records. You declare each US dividend at its gross amount in your Australian return and claim the US tax withheld as a foreign income tax offset. You also track the AUD cost base of every purchase for capital gains tax.

US estate tax: the risk most people miss

If you die holding US-situs assets, which include US shares and US-domiciled ETFs like VTS and VEU, your executor must file a US estate tax return once those assets exceed US$60,000. Australian-domiciled ETFs such as IVV, V500 and VGS avoid this, because you own units in an Australian trust, not US shares.

Direct investing makes sense if you want specific companies, or US-listed funds with no ASX equivalent (for semiconductors, see SEMI vs SMHG vs SMH vs SOXX), and your US holdings will stay well below the estate tax threshold or you've taken advice on it.

Tax: what's the same and what differs

	Australian-domiciled ETF (e.g. IVV, VGS)	Direct US shares or US-domiciled ETF
US tax on dividends	Withheld inside the fund; shown as a foreign income tax offset	15% withheld from your dividends (with W-8BEN)
W-8BEN	No	Yes, renewed periodically
US estate tax	No	Yes, above US$60,000 of US assets
Australian CGT on sale	Yes	Yes
Currency exposure	Yes, unless you choose a hedged fund	Yes
Record-keeping	One annual tax statement	Every dividend and trade

Capital gains on all of these are taxed in Australia. Units or shares held more than 12 months get the 50% discount on gains up to 30 June 2027; gains after that use indexation with a 30% minimum rate under the 2027 CGT changes. Use the Capital Gains Tax Calculator to estimate a sale, and the ETF Calculator to model long-term growth with fees.

Frequently asked questions

What is the best way to invest in international shares from Australia?

For most people, an ASX-listed, Australian-domiciled ETF: VGS or BGBL for global developed markets, IVV or V500 for the US, and VGE or IEM for emerging markets. You buy in Australian dollars through any broker, with no US tax forms and no US estate tax exposure.

Do I need a W-8BEN to buy US shares?

Only for shares or ETFs that are US-listed or US-domiciled, including VTS and VEU quoted on the ASX. It reduces US tax on your dividends from 30% to 15% and generally needs renewing every three years. Australian-domiciled ETFs like IVV and VGS don't need one.

Do Australians pay US tax on US shares?

US tax is withheld from dividends: 15% with a W-8BEN for direct holdings, or inside the fund for Australian-domiciled ETFs. You can generally claim it as a foreign income tax offset in your Australian return. Capital gains on US shares are taxed in Australia.

Is VGS mostly US shares?

Yes. The US made up 74.07% of the MSCI World ex-Australia index that VGS tracks at 30 September 2026. The rest is mainly Japan, the UK, Canada and Europe.

Are VTS and VEU safe for Australians?

They're legitimate Vanguard funds, but they're US-domiciled, so you need a W-8BEN and your holding counts towards the US$60,000 US estate tax threshold. Australian-domiciled alternatives such as IVV, V500, VGS and BGBL avoid both.

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This article is for general information only and does not constitute financial, tax or legal advice. Individual circumstances vary. Consult a registered tax agent or licensed financial adviser before making decisions based on this information.