Hi all,
Given a recent question I had, and the little amount of info on G4 Visa, I wanted to share some info after a chat with a tax advisor so anyone with incoming G4 visa would save the money and the time.
- interest and dividends from non-US source are tax exempt. This includes UCITS ETF in Ireland or Luxembourg, so all the MSCI ACWI, MSCI World/EM, Vanguard FTSE all world, etc. as well as foreign stocks and foreign bonds. It would be hard to have them in a US broker: in any case, it is important that you hold them in a non-US broker.
- interest from US CDs, certain bonds, etc. should be free (I say should because I have no interest in them so didn't go into much details). Note: the same is not true for bond etf or mutual funds with a US domicile.
- if held in a non-US broker, even US stocks dividends/interest are tax free (I admit I did not ask more info, I have no interest in holding individual stocks)
- stay away from capital gains, those are taxed 30 % anywhere in the world unless you spend less than 183 days in US, which is unlikely for G4 visa holders based in US.
- Capital gains net loss cannot be carried forward from year to year. Also for this reason, you do NOT need to file a return if you do not have net capital gains.
- note for capital gains: need to translate in USD the cost basis and the proceeds, just like in the UK, in case you're working with a non-USD currency
- exception for UK people: capital gains in SIPP or pension wrappers should be tax exempt too. I personally will not realize any of them anyway. ISA/LISA capital gains will raise capital gains tax at 30% again
- remember US source income is taxable at 30%: so no renting of your flat, no rental property in US
- rental property income abroad is tax exempt, except of course for the capital gain
Probably the most important piece is to find a bank/institution that is happy with a US address, as many banks will ask you sell everything and close the account just because of the US address, regardless that you are non-resident. FYI: AJBell and FinecoBank are ok. Vanguard UK is not. I presume IBKR will be ok with it.
I would like to thank Ted Swippet for his comments to my previous post.
Given a recent question I had, and the little amount of info on G4 Visa, I wanted to share some info after a chat with a tax advisor so anyone with incoming G4 visa would save the money and the time.
- interest and dividends from non-US source are tax exempt. This includes UCITS ETF in Ireland or Luxembourg, so all the MSCI ACWI, MSCI World/EM, Vanguard FTSE all world, etc. as well as foreign stocks and foreign bonds. It would be hard to have them in a US broker: in any case, it is important that you hold them in a non-US broker.
- interest from US CDs, certain bonds, etc. should be free (I say should because I have no interest in them so didn't go into much details). Note: the same is not true for bond etf or mutual funds with a US domicile.
- if held in a non-US broker, even US stocks dividends/interest are tax free (I admit I did not ask more info, I have no interest in holding individual stocks)
- stay away from capital gains, those are taxed 30 % anywhere in the world unless you spend less than 183 days in US, which is unlikely for G4 visa holders based in US.
- Capital gains net loss cannot be carried forward from year to year. Also for this reason, you do NOT need to file a return if you do not have net capital gains.
- note for capital gains: need to translate in USD the cost basis and the proceeds, just like in the UK, in case you're working with a non-USD currency
- exception for UK people: capital gains in SIPP or pension wrappers should be tax exempt too. I personally will not realize any of them anyway. ISA/LISA capital gains will raise capital gains tax at 30% again
- remember US source income is taxable at 30%: so no renting of your flat, no rental property in US
- rental property income abroad is tax exempt, except of course for the capital gain
Probably the most important piece is to find a bank/institution that is happy with a US address, as many banks will ask you sell everything and close the account just because of the US address, regardless that you are non-resident. FYI: AJBell and FinecoBank are ok. Vanguard UK is not. I presume IBKR will be ok with it.
I would like to thank Ted Swippet for his comments to my previous post.
Statistics: Posted by jg12345 — Sat Dec 16, 2023 7:04 am — Replies 0 — Views 77