Moving across the Atlantic feels like a fresh start, but your finances don’t reset when you land. In fact, managing money as a U.S. expat gets more complex, not less.
Before you move, or if you’ve already made the jump, here’s what to watch closely.
U.S. Accounts Get Complicated Overseas
Your 401(k), IRA, or brokerage account isn’t going anywhere. But once your official address is outside the U.S., your provider might limit your access.
Some freeze trading. Some block reinvestments. Others might just close your account without warning.
Even when you’re able to keep everything intact, local tax rules can make those U.S. accounts look like strange, non-compliant entities. That’s when the headaches begin.
PFIC Rules Can Wreck a Perfectly Normal Investment
Most expats eventually ask: “Can I just invest locally?” The short answer: you can, but should you?
For U.S. citizens, foreign mutual funds or ETFs often trigger PFIC (Passive Foreign Investment Company) rules. That means higher tax rates and dense paperwork, Form 8621, if you’re curious.
Avoiding PFICs usually requires sticking to U.S.-domiciled investments or getting into very specific, IRS-compliant products. These aren’t things local advisers are familiar with, and they’re not always easy to find or buy without specialist help.
Some advisors build investment strategies with PFIC compliance in mind, but it’s worth asking them directly: what exactly are the compliant options available, and how do they source them?
U.S. Friendly Advice Is Harder to Find Than You Think
Here’s a quiet truth: most international financial advisers won’t touch U.S. clients. FATCA and SEC rules make it risky, and few are trained in both systems. The ones who say “yes” often don’t understand how your U.S. tax return works, or how foreign investments could make it worse.
There are advisors licensed across jurisdictions, familiar with the U.S. tax web, and who work with expats specifically.
That said, keep these Questions in mind:
Do they coordinate directly with tax professionals, or will you still need an outside CPA or local adviser?
Retirement Planning Isn’t “Set and Forget” Anymore
Keeping your 401(k) or IRA untouched is possible, but is it smart? In some cases, it might create a mismatch between your retirement needs and the rules of the country where you live.
Transfers are another story entirely. Some plans don’t allow cross-border rollovers. Others hit you with exit fees or tax penalties if the move isn’t structured right.
Estate Planning Can Fall Apart in Transit
Living internationally often puts you at the intersection of multiple legal systems. You might be subject to one country’s inheritance laws, another’s estate taxes, and the IRS’s global reporting rules, all at once.
Basic estate planning in the U.S. might not apply where you live. Beneficiary designations may be ignored. Probate might be automatic. Inheritance taxes could blindside your heirs. Advisors can advise on structures that reduce exposure, but you’ll still need local legal guidance.
Offshore Doesn’t Mean Shady, But You’ll Still Need to Explain It
Smart cross-border planning often involves holding accounts in neutral jurisdictions or specialised platforms. These aren’t tax dodges. They’re designed to keep you compliant across multiple countries. Still, you’ll need to report everything to the IRS, often with Form 8938 or FBAR filings.
Questions to ask an Advisor: Do they help prepare the IRS forms that go along with these accounts? And do they support you if you’re audited?
Always Look for the Right Advice
Cross-border finances can get complicated fast, but you don’t have to figure it all out on your own. Whether you’re still planning your move or already living abroad, getting the right guidance can make a big difference.
If you ever need help, SJB Global is here to point you in the right direction, with advice tailored to U.S. expats just like you.
