US Friendly Investment Management

Expat Investment Options

Expat investment options can take many guises but are broadly broken down into two categories: onshore or offshore. Although, for many expats, the offshore investment option is considered more favourable due to its tax benefits. As an American abroad you will be taxed on your worldwide income and gains. The US also have some punitive rules for holding some common investment structures open to expats. 

‍Beware USA taxation on existing PFIC investments

Passive foreign investment company, or PFICs, are non-US investment funds, such as mutual funds, hedge funds, and Exchange-Traded Funds (ETFs). As well as tax wrappers, such as offshore bonds, are also classified as PFICs.

These PFICs are subject to draconian taxation by the Internal Revenue Service (IRS). This means that taxation can often wipe out any profit they generate. There’s also additional administration to consider, as you must file a report to the IRS for each PFIC you hold.

Understanding your investment options as an expat can be complex and confusing. Getting the right advice is crucial to ensure you don’t fall foul of the more complex investment rules or end up paying unnecessary tax. Talk to one of our wealth advisers for independent advice about your course of action.

How We Invest for Americans

As a multi-jurisdictional investment advisory firm licenced in both Switzerland and the US we understand the issues faced by expats. We have developed our offering for U.S. expats both in house and with investment partners that are tax efficient, US friendly, multi-currency and above all don’t compromise on quality. 

What’s more if you move away from Switzerland these accounts are fully portable meaning they can be taken with you and managed from one of our many offices in the UK, Europe, Australia or the US.

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