I’ve made investments in the stock market; is that a problem?
The US has made investing in the stock market outside the US. extremely complex. Banks abroad are denying US Citizens investment services for fear of a penalty due to FATCA. Buying individual stocks might be possible whereas buying funds outside the US poses a big problem. The US also imposes a non creditable taxation on some investment products abroad.
The US furthmore requires that you report all financial interest you have in the US or abroad (FBAR). The US regulations on reporting these investments are complex. Therefore, we advise you to have this screened by a tax advisor specialised in filing for US citizens abroad. Americans Overseas can provide you with names of professionals if desired.
Why Americans should never own Shares in a Non-US Mutual fund (PFIC)
A PFIC ( Passive Foreign Investment Company) is simply a “pooled investment” registered outside of the United States encompassing mutual funds, exchange-traded funds (EFTs), closed-end funds, hedge funds, insurance products and non-U.S. pension plans. Having so called PFICs results in punitive tax. FATCA makes it nearly impossible for the IRS to not tax them. Do you have PFICs? Or are you unsure? Be well informed, contact Americans Overseas for an affordable financial service adapted to your wishes, investment and knowledge. Avoid this punitive tax.
For people with an American nationality, it can be good to find out what options there are to save for retirement income. For example, there are IRAs (individual retirement account) and Roth IRAs, these savings options can be very interesting from a tax perspective.