For monkeys that are American and live in the EU or the other way around: through my parents I can get EU citizenship, so I was wondering if anyone has had complications with either getting it or having it. Specifically:
- Do the feds tax inheritances of foreign assets from parents that have dual citizenship?
- Has anyone had trouble opening bank accounts due to FATCA and the Treasury complicating things?
- Are pension benefits taxed only in the country of work (social security in the US and whatever they have in the EU)?
The taxman doesn't make the free movement of capital easy.
Hi BubbaBanker, whoops, looks like nobody chimed in here.... maybe one of these discussions below is relevant:
If those topics were completely useless, don't blame me, blame my programmers...
Bump
An American living/working in the US with EU citizenship will not face any additional taxation from either the US or the EU for being an EU citizen. You’re safe in this situation, including from inheritance tax.
In general, the “problem citizenship” from a tax perspective is the US one. You will need to submit a US tax return every year regardless of where you live and earn your income. If you are working in the EU as a US citizen, you could be subject to additional taxes depending on the nature of your earnings. You will definitely want to consult an expert if you are a highly compensated individual.
Cannot comment on the US taxation of pension benefits earned abroad. There are tax treaties in place that address certain types of earnings but ignore other types. Based on my super limited knowledge, if you are living in the USA, expect to pay taxes on every dollar or euro you earn unless you have some fancy legal entities setup to help shield you.
The USA banks don’t care if you are a citizen of an EU country (most won’t know / ask), as long as you are a US citizen.
Not sure if the above is even helpful, but you should definitely seek advice if you’re an American working in Europe. If you’re an American working in the USA that just happens to be a dual citizen, you’re totally fine.
This is very helpful. In a couple weeks I'm actually going to the consulate to file citizenship papers. As of right now and for the foreseeable future, I have no real intention of moving to the EU just yet, at least not for a couple years, so with the exception of a foreign inheritance, it doesn't sound like anything will be complicated. In the future, assuming higher earnings, I'll definitely looked at getting professional help since it will definitely get complicated, Uncle Sam doesn't like making things simple.
I know just enough to be dangerous here. Seriously, get a professional.
My understanding is that most countries outside of the US will only tax you on what you earn there, while the US will tax you on everything. EU citizenship is unlikely to cause negatives, but most EU banks are unlikely to want to touch you given that you're a US citizen.
That's generally been my understanding as well from what I've found out in the past year. My situation right now isn't very complicated, but I'm sure that could very likely change in the future, so later I will definitely lawyer/CPA up.
However, your point about EU banks, would that still even be the case if I went through with EU citizenship? From a recruiting perspective, it would be good to be treated as a local/other EU hire, but I wasn't aware if simultaneously being a US citizen made that complicated for them, not just for me from a tax perspective. What do they not like about it?
From a hiring perspective I think you're fine. From a banking/tax perspective I think you're f---ed. I'm serious about hiring somebody who knows this stuff. Basically by enrolling you as a customer any bank has to do full US compliance, which is a mess. Don't take internet advice here.
Ask a tax accountant
Try Barclays International Banking. They will take you on as a dual USA/EU citizen and you can setup an offshore account and link other currency accounts, essentially enabling you to have USD/EUR/GBP denominated accounts all linked. Can do it all while living in the USA.
Once you leave the US and start working abroad, definitely get professional tax advice.
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