Message Font: Serif | Sans-Serif
No. of Recommendations: 2
saunafool: "The U.S. laws actually make it worse. Americans cannot have investment accounts overseas. Or, they can, but the only two things which are accepted investments are cash and U.S. Treasuries.

. . .

If American law makes it impossible for me to extract the money without paying punitive taxes (i.e. 70% when you add the European income tax plus the U.S. tax) and they make it impossible for me to invest locally--because all of my retirement expenses will be in Euros, I would have to consider renouncing citizenship."

I am neither a tax pro nor af ormer expatriate, but neither statement above sounds correct to me. And with regard to the latter statement, the US gives a credt for foreign taxes paid.

"You may claim the Foreign Tax Credit for taxes paid in a foreign country. However, you may not claim a tax credit for taxes paid on any income which has been excluded from US taxation using the foreign earned income exclusion or the foreign housing exclusion."

And with respect to the first statement, see


Regards, JAFO
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.