can i become investor in vanguard from czech republic

Not only will the tax rate applied to these investments be much higher than the tax rate applied to a similar or identical U.S. PFICs are subject to special, highly punitive tax treatment by the U.S. tax code as Passive Foreign Investment Companies (PFICs). mutual funds, ETFs, hedge funds, certain insurance products, etc.) should be avoided because such investments are treated under the U.S. taxation, Creative Planning International broadly recommends that all non-U.S. PFIC taxationįor investors subject to U.S. The Problem – Special Tax Regimes in the UK and the U.S. After describing the problem, we present a series of solutions and rank them in terms of their tax/compliance efficiency as well as their soundness as investment strategies. In this note, we address a Catch-22 investment tax issue that affects Americans who reside in the United Kingdom. Furthermore, when it comes to long-term wealth management planning, it is critically important that a sound investment strategy not be forfeited to achieve tax or compliance objectives alone.Ĭreative Planning International specializes in implementing investment strategies that are tax efficient and compliant, yet still sound from the point of view of strategic investment objectives. citizens from double taxation, navigating the complexities of cross-border taxation still requires diligent tax planning. tax code and bilateral tax treaties that generally protect U.S. While there are special provisions in the U.S. permanent residents) are taxed by the United States, as well as their country of residence, no matter where they live or how long they have lived outside the United States. The United States, almost uniquely in the world, taxes not only on the basis of residence, but also on the basis of citizenship. FATCA legislation makes this once easily ignored tax issue critical for all American investors living in the United Kingdom and Americans moving to the UK.

exchange traded funds that are also so-called UK “reporting funds.” Most importantly, the new U.S.

U.S.-based funds can be taxed punitively by the UK) can be successfully navigated by investing in efficient U.S. This investment “Catch-22″ (UK funds are taxed punitively by the U.S. This is because the United Kingdom has a parallel system of punitive taxation of non-UK funds. Passive Foreign Investment Company (PFIC) tax regime raises high hurdles for Americans in the United Kingdom to invest wisely and tax efficiently.

Can i become investor in vanguard from czech republic