4 ms·
One thing you have to be aware of, is that the US assumes any financial dealing outside the US is strictly for evading taxes. If you have a pension fund in you
by beagle3 5y ago
One thing you have to be aware of, is that the US assumes any financial dealing outside the US is strictly for evading taxes.
If you have a pension fund in your home country, you’ll likely be reporting and paying tax on its interest. Be prepared to have your looked country banks refuse to deal with you or limit you to saving accounts, and lots of other complications. When living in the US, my tax filing (because of I had to sell some non U.S. assets) one year topped 200 pages; and every year it cost me about 5-10 full work days to prepare the tax filing.
Many people just don’t bother reporting everything, whether out of ignorance or out of negligence - and very rarely get audited. But I wasn’t willing to take the risk.
My advice is: before moving, find an accountant who specialized in US tax for people in your country (and the treaty), and discuss your specific situation. Minor changes before moving could make your financial life incredibly less stressful - and most of them cannot be done once you’ve moved.
At the very least, you must know of FBAR, FATCA, and the treaties that apply to you. But really, two hours with a professional tax person will probably have an ROI of x1000 or so.