Financial Advice for American Expats in Europe

Arisaig Wealth Management’s David Bellingham discusses some sound financial advice for American expats in Europe alongside guest Steve Lazar. Geared toward Americans living abroad, a wide range of topics are discussed around the implementation of the 2010 Foreign Account Tax Compliance Act, including:

The Impact of FACTA (Foreign Account Tax Compliance Act)

All money abroad must be accounted for
State the maximum amount in each account even if money is just passing through
If you are “Accidentally American” (US connected people) be aware of your FACTA responsibilities
Reporting your obligations does NOT mean you will ultimately be taxed on all accounts

Main Points to Consider as an American Living Abroad?

Report all your income around the world
When making investments make sure to to the kind that are most compliant with US tax obligations
Find an advisor who can accomodate US tax reporting requirements properly
Make it easy on yourself!

The difference between PFIC (Passive Foreign Investment Company) and QEF (Qualified Electing Fund)

Every investment is a PFIC unless considered otherwise. If it is, then you may pay more tax in the US

Recommendations for Managing Assets Onshore vs Offshore

Look out for pitfalls like US institutions who do not want to aid you when overseas
Coordinate your financial team between onshore and offshore compliance and understanding

Other Important Bits of Financial Advice for American Expats in Europe

Watch exchange rates
Gains in overseas pension are taxed on an annual basis
Be aware!

To learn more solid investment advice, contact Arisaig Wealth Management today!

Expat Republic is a media company and does not provide financial advice, please do consult a licensed financial advisor for expat investment advice. The opinions/advice provided in the above is solely those of Arisaig Wealth Management a licensed financial advisor.