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Expat investment guidance
Hey folks,
I'm looking for some good guidance to navigate obvious loopholes or money leakage that I'm either probably falling foul, or at risk of.
Question: How should I be setup to
minimize brokerage fees - What brokerage would you recommend?
avoid the risk of being whacked by the IRS? - Should I change my portfolio to Irish/Luxemburg ETFs etc.?
Situation:
Making long term investments, a few 2-3$k a month into boring ETFs
British Expat, fully domiciled and resident in Qatar
Using eToro, with Seychelles account (I had this account for about 10 years, seemed smart to put money somewhere)
Splitting investments 1/3 SCHD, VTI, MTUM (US funds)
A little less than $30k today, way less than $60k that I understand gets the IRS interested
@kifflom1 You are British. Why are you worried about the IRS unless you are a US tax payer? You should be more concerned about HM Revenue & Customs.
@sir_faith The UK's tax is high, but its really easy to manage if you are abroad:
As long as you have a contract/proof of residency overseas HMRC doesn't want to know anything about your foreign assets
UK income is easy to control and declare: rental income, dividends from UK companies etc.
To maintain it you spend less than 31 days in the UK on work / 90 days visiting as a tourist (ish)
By contrast I understand the US has some entertaining rules on non-resident aliens
30% of dividends are automatically withheld from non-US Citizens when investing in US domiciled funds through brokers
If >$60k is invested and you die then your family has to pay US estate tax of 40%
An article I found with some info on these:
https://www.thenationalnews.com/bus...ds-are-a-tax-danger-for-expatriates-1.1103326
@kifflom1 But why bother with
anything US related in any of this. Is it just because you’re attached to buying these particular funds?
@glegbart Inexperience going in, and they seemed like a good place to start. Also not sure of the best way to access non-US funds
@kifflom1 What I do as European in the middle east:
Open an Interactive brokers account (cheapest broker) and invest in Irish domiciled ETFs so you only get the 15% tax from dividens and no state tax etc.
You can see the etfs in
https://www.justetf.com/uk/find-etf.html
@kifflom1 You could Invest in VWRP using Interactive Brokers. It’s a good global index fund that plenty of people recommend to move with the global market.
It’s in £ (in Ireland I believe) so you don’t pay any US related tax.
