Short answer: yes, you can. Longer answer: yes, but not in the way you might expect, and definitely not by carrying on as if you never left. 

If you have recently moved abroad, or you are planning to, you may have already had an unpleasant surprise. Perhaps your US brokerage sent a polite but firm email asking you to close your account. 

You are not doing anything wrong. You have simply walked into one of the most awkward corners of international finance: investing as an American overseas. 

The good news is that thousands of US citizens invest successfully from abroad every day. They just do it with a plan. Here is an overview of the landscape. 

Why investing gets complicated when you move 

US citizens generally remain subject to US tax filing requirements and taxation on worldwide income even when living abroad. Whether you move to Lisbon, Lyon or Valencia,the IRS may still expect an annual tax return, and it still cares deeply about what you invest in. 

At the same time, your new home country will usually consider you a tax resident too. So you are now answering to two tax systems at once. 

This creates three common roadblocks: 

1. US brokerages closing accounts. Many large US platforms restrict or close accounts once they learn you have a foreign address. It is a compliance decision on their side, not a reflection of you. Some investors are tempted to keep using a relative’s US address instead. It is worth being aware that doing so can breach the platform’s terms of service, complicate your tax position and create problems that surface later. 

2. Foreign banks avoiding Americans. Under FATCA, non-US financial institutions must report accounts held by US citizens to the IRS. Many local banks and investment firms decide the paperwork is not worth it and simply decline American clients. 

3. The PFIC issue. This is the big one. If you invest in non-US mutual funds or ETFs, the IRS will usually classify them as Passive Foreign Investment Companies, or PFICs. The tax treatment is punitive and the reporting is a headache. A European index fund that looks straightforward on paper can become significantly less attractive on an after-tax basis purely because of how the IRS taxes it. Sadly, many Americans only discover this after they have invested. 

How Americans abroad commonly approach investing 

Despite all of the above, there is a well-trodden path. It generally involves three elements.

US-domiciled investments. US-listed ETFs and funds are not classified as PFICs, so many Americans abroad focus on them. The challenge is access, because EU regulations (specifically the requirement for a document called a KID under PRIIPs rules) restrict how European residents can buy US funds directly. There are compliant routes to hold US-domiciled investments while living in Europe, and this is an area where the choice of platform or adviser can make a practical difference. 

• Expat-friendly custodians. A number of brokerages and investment platforms are specifically set up to serve Americans abroad. They understand FATCA, they will not panic at a foreign address, and they can hold the kinds of investments that suit a cross-border situation. 

• Coordination between both tax systems. Where an investment is held can matter as much as what is held. A structure that is tax-efficient in the US can be taxed heavily in Spain, and vice versa. The treaty position between the US and the country of residence can significantly affect after-tax outcomes, which is why many expats treat cross-border tax planning as a core part of their investment approach rather than an afterthought. 

What about existing accounts? 

Moving abroad does not automatically require closing US retirement accounts such as IRAs and 401(k)s. 

However, custodian policies vary, and withdrawals may be taxed differently in your new country of residence. Understanding how withdrawals will be treated before drawing anything is generally a valuable planning conversation to have. 

Taxable brokerage accounts are more case by case. Some custodians will let you keep the account with a foreign address, some will restrict trading, and some will ask you to leave. Finding out where you stand before you move gives you far more options than finding out after. 

The bottom line

Being American abroad does not shut the door on investing. It just changes which doors are open. 

Those who navigate it well tend to have three things in place: an understanding of the PFIC rules, a custodian that welcomes expats, and planning that covers both sides of the Atlantic.