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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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Hello. I m a european citizen working and living in Europe.

Resolved Question:

Hello. I´m a european citizen working and living in Europe. I´m planning to open a broker account in the US to invest in US stocks. I will have to transfer some funds and I expect to transfer back gains. Will I have to pay taxes on that? How does it work? thanks for your advice.
Submitted: 3 years ago.
Category: Tax
Expert:  Lev replied 3 years ago.

LEV :

If you are neither US citizen nor US resident - you will be taxed only on income from US sources.
There are no taxes on transfer funds - you might be only taxes on income earned. How the source of income is treated - see IRS publication - http://apps.irs.gov/pub/irs-pdf/p519.pdf

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So - interest you will earn - is not your taxable income for US; Dividends distributed by US corporation is generally taxable, but if paid by foreign corporation - not taxable.

JACUSTOMER-cinekkzr- :

Basically, the earnings will come when selling the stocks. Will I then be taxed on that revenue?

LEV :

yes - if these are stocks of US companies

JACUSTOMER-cinekkzr- :

Perfect. Last question. In that case, as a reference, do you know the approximate % to pay?

LEV :

depending on the total income - you might be required or not to file your tax return based on your total income from US sources. Please also be aware of US-France tax treaty - income from the sale of stocks is a capital gain - if you are a resident of France - it will not be taxed - see IRS publication page 36 - http://www.irs.gov/pub/irs-pdf/p901.pdf - see the row for France. You will need to file a form with your broker to claim the tax treaty exemption.

JACUSTOMER-cinekkzr- :

perfect. Thanks!

LEV :

This is a form to use - Form W-8BEN (PDF) Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding - but consult your broker to be sure there will not be any withholding.

Lev, Tax Advisor
Category: Tax
Satisfied Customers: 22646
Experience: Taxes, Immigration, Labor Relations
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