What is a Brokerage Account?
For American expats, a taxable brokerage account involves more complexities than an IRA, primarily due to the need for IRS compliance. The account must generate a form 1099 and adhere to US tax regulations. Since it isn’t tax-deferred, the portfolio can typically only include individual stocks or US-based funds. US citizens living abroad face stricter limitations on the types of investments they can make. Many non-US ETFs or mutual funds are classified as Passive Foreign Investment Companies (PFICs), which are subject to higher tax rates in the US.
Why Use a Taxable Brokerage Account?
As a US expat residing in France with available cash to invest, you need an investment solution designed with your unique needs in mind. Our taxable brokerage accounts are structured to ensure IRS compliance, giving both you and your tax advisor confidence that the investments within your portfolio adhere to US tax laws.
Key Benefits
US expats face limited investment options while living abroad, especially since many foreign investment products are classified as Passive Investments. To optimize your taxable investments, it’s essential to work with a cross-border financial advisor who understands the specific tax and regulatory landscape. With the right guidance, you can build a tax-efficient portfolio that complies with IRS rules and is positioned to grow in a low-interest, high-inflation environment.
Why Choose Harrison Brook?
At Harrison Brook, we bring years of experience in advising US expats across Europe and the United States. Our approach is personalized — we partner with a range of investment managers across Europe to offer bespoke portfolios tailored to your financial goals. Unlike other firms, we are not limited to a single portfolio provider, giving us the flexibility to design a strategy that truly meets your needs.
How to Open a Taxable Brokerage Account
Setting up a taxable brokerage account is straightforward. We can help you transfer funds in your preferred currency and convert them at competitive exchange rates. While most investments are in US dollars, we offer the option to diversify across multiple currencies. We can also assist in transferring an existing portfolio and gradually diversifying it over time to fit your financial strategy.
