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US expat wants to invest in US stocks

Financial discussion for any financial queries for Expats
tbr42
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Joined: June 9th, 2021, 11:41 am

US expat wants to invest in US stocks

#418342

Postby tbr42 » June 9th, 2021, 11:48 am

I am a dual US / UK citizen living in the British Isles who maintains a US address and still files US taxes. My unmarried partner is a British citizen. We have no plans to return to the US for the foreseeable future. My partner and I wish to invest in US stocks, but wish to do so in the most tax-advantageous and least complicated scenario possible (obviously!).

I see three options:
    Open a UK brokerage account in my partner’s name to invest in US stocks.
    Open a UK brokerage account in my name to do the same.
    Open a US brokerage account in my name to invest.

My own (ongoing) research has turned up quite a lot of information that is swimming around in my brain — FACTA, FEIE, US brokerages prohibiting expats from opening accounts, UK brokerages refusing to take on US expats, etc, etc, etc.

Can anyone suggest what they believe is the best method for investing in US stocks in our situation and why?

Or perhaps there’s a possibility we aren’t aware of yet.

Thank you.

gryffron
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Re: US expat wants to invest in US stocks

#418474

Postby gryffron » June 9th, 2021, 8:39 pm

Hi tbr42,
What you invest in doesn't really matter. Most brokers cover all major markets. It's finding a broker that is difficult in your situation.

As you have already discovered, onerous IRS rules mean most foreign brokers won't touch US citizens.

Time and again, Interactive Brokers come up as the truly international solution for expats. This link thinks so too. They have offices all over the world, and seem to understand the problems better than most. Whether you would be better opening an account at their US office or UK one I am unsure. As a US taxpayer I'd suspect the former. But I'm sure a quick phone call to them would help you decide.
UK: 0207-710-5695 http://www.interactivebrokers.co.uk
US: 1 (312) 542-6901 http://www.interactivebrokers.com

If your partner is not subject to US tax rules, then they can open a UK account anywhere. Even using an ISA or SIPP to save tax. But - think ahead - if you/they are likely to move country anytime, then locking yourself into UK tax rules can be pain, and using a flexible basic account at IB might be easier.

Gryff

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Re: US expat wants to invest in US stocks

#431590

Postby DiamondEcho » July 30th, 2021, 9:58 pm

gryffron wrote:If your partner is not subject to US tax rules, then they can open a UK account anywhere. Even using an ISA or SIPP to save tax. But - think ahead - if you/they are likely to move country anytime, then locking yourself into UK tax rules can be pain, and using a flexible basic account at IB might be easier. Gryff


Agree with all Gryffs post just on this point^. As a Brit open 'tax incentivised' a/c's such as ISA's/SIPPs before leaving the UK. You should be able to maintain them whilst you are expatting abroad but once abroad they are (IME) impossible to open.


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