This article contains details specific to global investing
. It applies to non-US investors, United States (US) investors, and US citizens and US permanent residents (green card holders) living outside the US.
The following outline is provided as a topical overview of non-US domiciles:
These articles address Bogleheads® investing for individuals living and investing in countries other than the United States (US).
Non-US domiciles applies to US nonresident aliens, and also to US citizens and US resident aliens (that is, green card holders) living outside the US. A nonresident alien is someone who is not a US citizen or resident. US citizens, resident aliens and residents are known collectively as US persons.
Pay special attention to the section on Tax issues highlighting the impact of US tax legislation even on investors domiciled outside of the US.
- For nonresident aliens: The US has unfavourable tax rules for US assets held by foreigners, some bordering on confiscatory. It taxes dividends paid by US stocks and US domiciled ETFs to foreigners at up to 30%, and may apply an estate tax of up to 40% on all US situated assets above a minimal $60,000 exemption. Be sure to understand how these tax rules will apply to you. If you need to avoid them, switch away from the usual US domiciled investments discussed among and used by US investors, and instead use equivalent investments domiciled in other countries, for example Ireland.
- For US persons: Uniquely among developed countries, the US taxes its citizens and permanent residents on their worldwide income whether they live in the US or outside. It uses protectionist tax laws to dissuade US citizens and residents from holding non-US domiciled investments. Because of these, you must usually invest as if living in the US, and you effectively cannot use normal investments freely available to non-US persons living in the same country as you.
In both cases, take care to understand these tax rules and restrictions early on. This will help to avoid huge problems later.
Investing in and from European Union countries
Introduction to investing in and from European Union countries
Investing in and from non-European Union countries
Pension fund performance studies