FACTA – Compliant Investment Plans

US taxpayers often find it difficult to hold their legitimate assets outside the US. This is because the US tax authority, the IRS, taxes US citizens on their worldwide income. However, there are ways for US taxpayers to hold their assets outside the US in a way that is compliant with FATCA and tax efficient.

Many firms are reluctant to help due to the high compliance and reporting burden for everyone involved, including investors, custodians, and advisers. SJB Global can offer both US compliant investment and retirement options for US-connect individuals. We consider whether compliant US solutions are both tax-efficient in the US as well as their country of residence thus highlighting the importance of cross-border advice and regulations. Your likely retirement destination also needs to be considered as some of the options available may offer greater benefits should you retire in certain countries.

Investment Options

We work alongside US-compliant platforms that are designed for US expats. This allows US expats to invest in a wide array of investments such as ETFs, mutual funds, DFM, stocks and bonds. Platforms also report directly to the IRS with both the 1099 and 1042 reports and any withholding tax is deducted directly from the investor’s portfolio and paid to the IRS monthly. They provide comprehensive reports that are sent to advisers and investors on an annual basis. These reports are what investors can use to file to the IRS. Other benefits include:

  • Can invest in any major currency – GBP/EUR/USD
  • Provide IRS requirements for US expats
  • Non-PFIF investment options such as ETFs, mutual funds, stocks and shares, bonds etc
  • A flexible account with no hidden fees or surrender penalties
  • Online access