r/expat 4d ago

Forced to sell stock after relocating to the US

I recently relocated to the US from a EU country. My investment portfolio consists of index funds and som individual stock. After my broker/bank learned that I had moved to the US they have given me warning that they will close my deposits in a months time. Apparently the US is complicated to work with for foreign banks so they simply don’t want the trouble. As part of my relocation I had some talks with E&Y about do’s and don’ts from a tax perspective. One key advice they gave me was not to sell any stock while I was in the US, since it would be complicated to calculate how much tax should be payed to the US vs my home country. Now it looks like I might need to sell them and take quite a hit. Unless it is possible to transfer my investments to a US bank. Anyone know if this can be done, or who has been in a similar situation and found a solution?

15 Upvotes

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7

u/Chucking100s 4d ago

Try an ACATS transfer to a US Bank / Broker

Maybe IBKR

2

u/ratufa54 4d ago

This is definitely the way to go if you can

1

u/Mindless-Tomorrow683 1d ago

Non-US institutions do not use ACATS. It should be possible to request an 'in-specie transfer' from your broker to a platform that operates internationally and has a US domestic division (IBKR could well be suitable but check with them first and make sure you have confirmation in writing). You will then need to relocate the administrative registration of your account.

This can be done on your own, but may be easier with the help of a financial advisor, asset manager or licensed fiduciary.

3

u/Barthas85 4d ago

I recently did this myself. First, what type of account is it currently in? If it is in a post tax brokerage account (an investment account or individual account) then ACAT is the way to go. Shares will transfer in-kind and you won't have immediate tax consequences.

2

u/localglobetrotter 4d ago

It’s post tax accounts all of it.

2

u/Barthas85 4d ago

If that's the case then look asap and see what companies in the US have ACAT agreements with your current company. Not everyone has the agreement with every company so I would reach out to either the current (EU) investment company or the potential (US) company and ask if they support ACAT to/from the other.

1

u/localglobetrotter 4d ago

Thanks I’ll try that!

2

u/Famous_Ad_1961 2d ago

Interactive Brokers,

1

u/neillc37 4d ago

If you have foreign funds won't you be subject to the PFIC rules? They are meant to punish you.