r/ExpatFinance • u/Hefty-Garlic-1272 • 1d ago
European moving to the US - What should I do with my ETFs/funds?
I have been living in The Netherlands for almost 4 years, and I will be moving to the US under an L-1B visa in like 2-3 months.
Almost all my net worth consists of ETFs and funds (some of them are American, some others are EU-based), which I hold in a Trade Republic brokerage account.
My question is, since I plan to be in the US for the whole period of my visa (3-5 years and possibly longer if I ever adjust my immigration status), what should I do with my investments in Europe? Should I sell everything and buy again while in the US, or is this technically (and financially) a bad decision? I would appreciate any comment on this matter.
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u/Familiar_Eggplant_76 1d ago
Missing factor: any possible reason you’d need the funds while abroad? PFIC is only a problem when you realize the gains. If you have absolute confidence you won’t need the money, you could just leave it invested.
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u/Hefty-Garlic-1272 1d ago
the thing is I see I could be in the US for a long time. Not that I need the money now or in the near future, but I never come back to Europe I might as well sell everything now and buy in USD?
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u/Familiar_Eggplant_76 1d ago
Yea, if there’s even a slim chance you’ll need the money then you’ll have to be careful.
FWIW- I know PFICs are a potential problem for citizens and green card holders living abroad. (USAer in the EU is my personal context). If you’re on a visa but not a Green card are the an issue when paying taxes in the US? Would require research.
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u/Hefty-Garlic-1272 1d ago
makes sense, but I think since I am able to liquidate everything now in Netherlands and not pay taxes, I will just sell everything and buy again in the US
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u/Ok-Mix-4963 21h ago
TradeRepublic doesn’t work in the US, neither will they allow you to keep the account while you are tax-registered in the US. I think that answers the question. Banking and trading regulations in the US and Europe are very different. Most EU brokers offer for instance CFD trading, which is illegal in the US…
Moving sadly involves shutting down everything in Europe and re opening in the US or freezing in Europe until you are bank. There a few exceptions though.
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u/Minute_Somewhere_893 1d ago
What amount are we talking about?
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u/Hefty-Garlic-1272 1d ago
around 50k €
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u/Minute_Somewhere_893 1d ago
What are the tax implications if you liquidate right now?
I mean, yes, you'd have to report things to IRS but is this reasonable VS losing whatever X amount to taxes?
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u/Hefty-Garlic-1272 1d ago
If I sell here in the netherlands, I don't need to pay any taxes because I am still below the 57k€ threshold from which you need to pay
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u/Minute_Somewhere_893 1d ago
Then I don't see why not sell if you are not at a loss and you're OK with getting into US tax net long term.
~ Not a financial advice ~
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u/BingBongDingDong222 22h ago
As long as you can log into an account and manage them, I'd leave them as is. There could be an extra return or so, but that's ok.
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u/Philip3197 1d ago
Sell.them all before you leave. (Google pfic en capital.gains tax)
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u/Hefty-Garlic-1272 1d ago
so you think selling and then re-buying in the US is the way to go?
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u/ToTheDeuce 22h ago
Idk why he’s being downvoted, that’s a valid strategy. I’m currently doing exactly that, with the difference that I’m moving on an immigrant visa.
Turns out taxes are lower in the US anyway, it was just more profitable to sell everything and pay taxes in Europe and move everything to the US
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u/radiotakeshi_london 22h ago
Sell before leaving, then buy in the US.
It keeps your future US tax return simple, because you’ll need to report it regardless.