Author: luca3m
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US Expat Finance 101
Living abroad as a US citizen involves complex financial considerations. Global taxation requires citizens to report and pay taxes on worldwide income. The Foreign Account Tax Compliance Act (FATCA) enforces reporting of foreign financial accounts. To navigate these challenges, it’s advised to maintain a US bank account, manage investments through a US broker, and stay…
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How to vote from overseas
Overseas voting can be challenging due to limited information online. Steps to vote from abroad include registering first for an Absentee Ballot via the Federal Voting Assistance Program. Afterwards you will receive a ballot via email that you will send back to the elections office.
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What happens to US retirements accounts when living abroad
US citizens’ retirement planning often involves 401(k)s, Traditional IRAs, and Roth IRAs. This post discusses managing these accounts while residing abroad. Retaining these accounts is feasible, and rolling over 401(k)s to Traditional IRAs is recommended. Contributing to Traditional IRAs while abroad may have tax implications, but Roth IRAs may still be a viable option. Withdrawals…
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How US investments are taxed in Italy
US citizens residing abroad should be aware of the taxation of earnings from a US broker in Italy. Capital gains are taxed only in Italy under the tax treaty, with different rates for stocks, government bonds, and US ETFs. Dividend income is taxed in both countries, entailing complexities and potential double taxation. Understanding these factors…
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Banking with Wise for US Expats
Wise is an ideal banking solution for US expats due to its multi-currency account features. With the ability to fund accounts in USD and EUR, fast and free money transfers, low currency exchange fees, and hassle-free account relocation, Wise provides convenience and cost-effectiveness for expats.
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Italian wealth tax: IVAFE
IVAFE, or “Imposta sul Valore delle Attività Finanziarie detenute all’Estero,” is a tax on financial assets held abroad by Italian residents, including ETFs. It is paid yearly at a 0.2% rate for assets held in non-blacklisted countries (including the US). This tax can be likened to an ETF management fee.
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Demystifying Direct indexing
In recent years, direct indexing has gained momentum, particularly with the rise of FinTech companies. It represents a newer approach to investing compared to traditional ETFs and mutual funds, offering increased customization and the potential for higher returns. What is Direct Indexing? ETFs and mutual funds typically hold a portfolio of stocks that mirror an…
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How to invest as US Citizen living in Italy
US citizens living in Italy face investing challenges. Italian banks struggle with FATCA compliance, while US brokers require a US address. US ETFs also incur unfavorable taxation. Solutions include investing in individual stocks through US brokers or establishing a US Trust in Italy, though the latter is costly and suitable for wealthier individuals.
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Managing your bank accounts abroad
Living abroad as a US expatriate? Managing your US bank accounts overseas can be complex. Keep your account for financial connections, future convenience, and credit score maintenance. Maintain minimum balances to avoid fees and watch out for foreign transaction fees. Some banks support expats, while others may require account closure.
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How to keep your US mobile phone number as an expat
Moving abroad brings logistical challenges, including maintaining connectivity through your mobile phone for staying in touch, 2-factor authentication, and cost-effective solutions. US Mobile and Google Voice offer affordable plans to keep your US number active abroad, providing essential services without unnecessary features, ensuring seamless connectivity and security.
Spaghetti Finance 