For US expats living in Europe, maintaining access to US banking and investment services is a critical yet often underestimated challenge. Staying connected to the US financial system while living abroad is vital for long-term financial security and success. However, navigating the complex landscape of US banking and investment requirements from overseas can quickly become overwhelming without the right guidance and support.

The Importance of Holding US Bank and Investment Accounts as an Expat

Accessing US banking and investment services from abroad can feel like a maze of bureaucratic red tape. Most US banks require account holders to have a US residential address, which is problematic for many who have relocated to Europe indefinitely. Additionally, regulatory frameworks like the Foreign Account Tax Compliance Act (FATCA) have led many US financial institutions to shy away from serving US citizens abroad, further complicating access to essential banking and investment services.

Maintaining a US bank account is not merely a convenience, it is fundamental. Payments to the IRS, state entities, and other federal obligations often require a US account, as attempting these transactions from a European bank can result in currency conversion fees, delays, and even penalties for late payments. Similarly, government benefits such as Social Security are typically deposited into US bank accounts. Without one, expats face unnecessary hurdles in accessing their funds.

If having a simple bank account is already a problem, investment management is even more complex for US expats. While foreign financial institutions may offer enticing investment opportunities, US tax laws often treat these foreign accounts and investments unfavourably. Expats holding non-US registered investments may face significant tax implications, including triggering complex reporting requirements and higher tax liabilities. For instance, investing in mutual funds regulated outside of the US can imply the application of Passive Foreign Investment Company (PFIC) rules, leading to exorbitant taxes and detailed annual reporting.

To avoid these pitfalls, US expats should prioritize holding US-registered financial products within regulated US custodial entities. These accounts not only ensure compliance with US tax laws but also simplify tax reporting. Without the right investment structure, expats may find that after-tax returns are significantly eroded.

Holding the right assets is crucial, but just as important is holding them in the right way. This entails an appropriate jurisdiction with the correct legal structures and accounts. For US expats, establishing a US-registered investment portfolio is key to maximize tax efficiency and preserve long-term wealth.

Savile Capital Group: A Global Financial Marketplace

Savile Capital Group specializes in providing comprehensive, tailored financial solutions for US expats, offering a unique combination of US banking, investment management, and tax-efficient strategies that support the needs of Americans living abroad.

Savile Capital Group LLC is a partnership of affiliated financial entities that provide a full range of brokerage, banking, and investment advisory services. Savile’s subsidiaries include its broker-dealer, Savile Capital Markets LLC (member of FINRA and SIPC), that offers investment services and products including brokerage accounts through RBC and StoneX. Additionally, Consultiva Wealth Management Corp, a SEC registered wealth manager, is the Group’s Investment Advisor.

Savile’s investment management services offer a wide array of options, from traditional investments like stocks, bonds, mutual funds and ETFs to alternative investments such as private equity and private credit. The firm maintains nine model portfolios for different investor profiles. A simple, automated questionnaire measures investment objectives, time horizons, and risk tolerance which determines the appropriate model portfolio per investor profile. These portfolios are aligned with expats’ long-term financial goals and address the regulatory challenges of being an American living abroad.

Finally, one of Savile’s key differentiators is its alliance with a Wyoming-based bank, allowing the firm to offer US expats direct access to US banking services. This development means that qualifying US expats should be able to now open and maintain a US bank account as a part of Savile’s value-added services.

Secure Your Financial Future with Savile Capital Group

Living abroad as a US expat presents unique financial challenges, but with the right partner they can be successfully overcome. Savile Capital Group provides the tools, expertise, and personalized support that US expats need to manage their finances with confidence, ensuring they remain connected to the US financial system while optimizing their investments for long-term success.

If you are a US expat in Europe facing banking and investment challenges, contact Savile Capital Group today to discover how we can help you secure your financial future.

For more information, contact James Levy-Newman at jlevy@savileco.com or US Tax Consultants