Are you wondering how to bank as an American in France? Moving to France is exciting, but banking can get confusing if you’re unprepared. Here’s a simple 3-step process to banking in France as an American: Step 1: Keep a U.S. Bank That Accepts Foreign Addresses A big problem many U.S. expats face is that U.S. banks won’t let you update your account with a French address. However, there are exceptions: State Department Federal Credit Union (SDFU) is a banking solution built for overseas Americans that’s available if you become a member of the American Citizens Abroad association. (approx. $70/year) Step 2: Pick An Online Multi-Curency Account Before Moving to France Wise: Easy to set up in the U.S., no visa or French address required. However, you’ll usually get a Belgian IBAN, which can be problematic for certain French financial institutions. Revolut: Works like a French bank account with a French IBAN, but you’ll need your visa and proof of address. If you already have those before leaving, you can open it early. Both Wise and Revolut are great for converting dollars to euros at competitive rates, especially for smaller amounts. You only need one! Choose the one that matches your situation so you don’t overcomplicate things. Bonus: Wise and Revolut are also great for sending money to friends or moving smaller amounts of money between accounts quickly — sometimes instantly. Traditional French banks, on the other hand, often take 3–5 business days to process transfers. Step 3: After You’re Settled in France Once you have your French address, we recommend opening a traditional French bank account. This makes it easier to: Pay rent, utilities, and insurance, as some of your expenses may not accept online banks Take out a loan for a property or car purchase Withdraw cash locally Additional proof that you’ve settled in France when you apply for a French visa or visa renewal When choosing a French bank, two things should be at the top of your list: Proximity: pick a branch close to where you live. In France, banking is very regional and you’ll likely visit your local branch more often than you would in the U.S. Experience with Americans: find bankers who are used to working with U.S. clients. They’ll better understand cross-border issues and the unique needs of expats as there are many bank products that you will want to avoid. Stay away from PFICs (Passive Foreign Investment Companies) and don’t get caught in the assurance vie trap! Common banks to look at: BNP Paribas Crédit Agricole Société Générale Credit Mutuelle Banque Populaire Quick Recap Stage Action Key Point Before Your Move Pick one online bank: Wise or Revolut, depending on visa/address. Don’t overcomplicate — one is enough. Both are good for currency conversion. Once Settled Open a local French bank account. Prioritize proximity and bankers familiar with U.S. expats and cross-border needs. Keep it simple Use Wise/Revolut for fast transfers; add a French bank for daily life. Balance speed + local access. Thinking of moving to France? Dunhill Financial is here to help U.S. expats living in Europe with their finances, offering investment strategies designed for European residents. We also work with a team of cross-border experts to offer a full suite of services, including financial, tax, and estate planning. Don't hesitate to reach out to Dunhill and schedule a free consultation with one of our cross-border financial advisors today. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2025 Dunhill Financial. All rights reserved.

We kicked off early with quite a volatile September, but that didn't concern us much. Historically, September is known as the worst month of the year for market performance. What has caught our eye, however, is the move in the bond market. Both US and French 10-year Treasury/Obligations assimilables du Trésor (OAT) yields have cleared 5%. To put these numbers into context, a 10-year yield above 5% pushes sovereign borrowing costs to levels not seen in decades, significantly raising debt-servicing burdens for major economies. At the same time, US 30-year mortgage rates have broken past 7%, putting severe pressure on consumer affordability and home transactions. Borrowing money, it seems, is now officially a luxury experience! Historically, when bond yields spike like this, stock markets take a sharp leg down. Yet this time around, equities have defied typical bond-market dynamics, with the S&P 500 continuously pushing into new all-time highs. Because we dumped our long duration and added commodities earlier at the beginning of the year, this yield surge didn't impact our portfolios much. But it leaves us with an interesting question: is the bond market simply doing what bond markets do, or are fixed-income investors trying to have their own little say ahead of the elections (a US Liz Truss moment)? Political Shifts Politics are strictly top of mind across global markets right now. But looking down at our allocation in Brazil, we were delighted to see a massive political pop-up—even setting aside our core premise of Brazil being a premier commodity-rich stock market. In short, we're getting to double-dip! It was pretty hard to predict that Flávio Bolsonaro would do quite so well in the first round of presidential voting in Brazil. Against expectations, he beat incumbent President Luiz Inácio Lula da Silva, and now seems overwhelmingly likely to win the run-off in two weeks’ time. Until a few weeks ago, Bolsonaro’s chances of prevailing seemed very slim. The elections for the legislature need no second round, and so the scale of the victory for Bolsonaro and the right is already clear. They now hold an outright majority in the upper house, and occupy a far stronger position in the lower house after squeezing the center. At 80, Lula is one of the world’s ultimate political survivors, and it is always unwise to count him out entirely. But it’s hard to see how he can surmount these odds, particularly as the broader regional mood appears tilted against incumbents and in favor of the right. If the political outcome was hard to predict, the market reaction certainly wasn’t; investors were delighted, bidding up Brazil’s Bovespa index to its highest level in dollar terms since 2011. Monday’s rally in the Brazilian Real (BRL) against the US Dollar was the largest single-day gain in four years. Market analysts (including TS Lombard's research team) point to legislative control as the primary driver. With a favorable Congress, Bolsonaro has a real shot at his target of cutting government spending by 1.5% of GDP—a level of fiscal consolidation that market participants felt Lula struggled to credibly signal. Now, fiscal discipline looks to be Bolsonaro’s responsibility to execute. For a deeper dive into these macro trends, make sure to check out Kam's and my recent economic update video discussion. US Midterms & Regulatory Reminders Turning toward the US, we have the upcoming midterms, which might well be part of the reason for this recent bond yield run-up (a bit of a "Liz Truss moment," if I could say). However, history teaches us that a divided government is usually the best-case scenario for equity markets due to policy gridlock and predictable spending constraints. Capitalists among us should be cheering on the Democrats for a split legislature—and with President Trump's approval ratings hovering at an all-time low of 29%, that split outcome is looking increasingly probable. Important Regulatory & Banking Changes EU Banking Framework (Article 21c): A major regulatory update for non-EU financial institutions takes effect on January 11, 2027 under Article 21c of the EU’s updated Capital Requirements Directive (CRD VI). This framework strictly limits how non-EU banks operate within EU member states, which may impact how your US bank accounts interact with European services while living abroad. Please call us if you get any letters from your home bank back in the US. Tax Deadline Alert (October 15th): The October 15th US expat tax extension deadline is now just a week away! If you have any outstanding questions, please give us a call—and please be kind to your accountants right now, as they are slammed busy getting filings across the finish line! Market Update The main theme for September was escalation. August's hope of a Hormuz settlement faded and crude rose back above $100 a barrel, its highest since May. Central banks responded: on 16 September the Fed raised rates by a quarter point to 4.00%, its first increase since July 2023, a week after the ECB lifted its deposit rate to 2.50%. U.S. equities declined -0.84% in dollar terms for the month but remain up +12.42% YTD, while Global ex-U.S. equities fell -2.38% but keep their lead at +14.22% YTD. Europe was the weakest region at -4.56% (+6.03% YTD), around half of it currency. Emerging Markets (-0.56%), Asia Pacific (-0.18%) and Latin America (-0.30%) were close to flat and remain 2026's strongest regions at +23.38%, +23.46% and +14.75% YTD. Large Growth (+2.18%) was the only style segment to gain. The dividing line was balance sheets rather than discount rates: companies funding themselves from cash flow, chiefly the large technology names spending on AI, shrugged off higher yields; those that borrow, or whose customers borrow, did not. The sector table tells the same story. Technology rose +5.08% (+36.45% YTD) and now makes up 40.83% of the S&P 500, while Financials (-7.14%), Materials (-7.15%), Real Estate (-6.48%), Consumer Cyclical (-6.44%, now -8.29% YTD) and Utilities (-5.92%) bore the damage. Energy fell -3.26% even with crude above $100, having already priced much of this in (+40.28% YTD). Fixed income had its weakest month of the year, with U.S. bonds -2.61% and Global bonds -2.38%, and U.S. Real Estate fell -6.40%, cutting its 2026 return to +3.67%. Consumer sentiment dropped from 55.2 to 48.1 as the 30-year mortgage rate passed 7%. Since month-end, the picture has softened. Payrolls rose only 29,000 in September, with the prior two months revised down a combined 60,000, and wage growth of 3.0% is now running below 3.4% inflation. Markets now see an October hike as unlikely, Treasury yields have eased from their highs, oil is floating at $100 and the Nasdaq 100 has reached new records. October is a month of scheduled decisions: September CPI on 14 October and PPI on 15 October. The FOMC on 27-28 October. The UK Budget on 28 October, and the ECB on 29 October. The U.S. midterm elections on 3 November, followed by the October jobs report on 6 November. The Fed is fighting inflation from an energy shock it cannot influence while the labor market cools, and the 14 October CPI print is the data point most likely to decide which concern wins. For the midterms, the bond market cares less about the result than the fiscal path, and neither outcome looks likely to reduce Treasury issuance. The models are not positioned on any single outcome; with the strongest and weakest assets both driven by rates in opposite directions, dispersion continues to argue for disciplined rebalancing over conviction. Heatmap In dollar terms, September reversed August's gains: the average allocation fell -2.01% and the median -2.63%. Unlike July, losses were broad, with only four of 22 holdings finishing positive and a handful of gainers pulling the average above the median. Brazil (EWZ +4.8%) led, helped by commodity exposure and a central bank that tightened well ahead of its peers, followed by cybersecurity (CIBR +4.6%), extending August's +9.1%. Commodities (FTGC +0.1%) were flat. Energy (VDE −1.9%) slipped despite crude rising, the behavior we flagged in August: the sleeve had run on the risk premium, and adding on strength would have been the wrong response. Fixed income was negative throughout, but for different reasons. BND (-2.6%) fell on rates alone, while BOND (-3.5%), PICB (-3.5%) and high yield (PCEB -4.2%) also carried currency losses; roughly two points of PCEB's decline was the euro rather than credit. For non-USD bonds this is a translation loss that reverses if the dollar does, and the underlying yields are now materially higher. The weakest holdings were rate-sensitive or European: U.S. real estate (VNQ -7.0%), European equities (FEP -6.0%), U.S. small caps (VB -5.1%), UK equities (FKU -4.4%) and U.S. value (VTV -3.6%), with FEP and FKU also carrying currency drag. Emerging Markets (AVEM -0.1%) beat the -0.56% headline EM return, and Infrastructure (GRID -1.0%) proved more resilient to rising yields than in July. If CPI confirms a softer path on 14 October, the rate-sensitive holdings that led the losses are the most likely to recover, and rebalancing toward target is how the portfolio participates. Yield Curve September brought the largest monthly move in Treasury yields this year, close to parallel: the 2-year rose to 4.88% (from 4.34%) and the 10-year to 5.29% (from 4.73%), crossing 5% mid-month for the first time since 2007. At the front end, the 3-month (4.20%) and 6-month (4.33%) sit above the new 4.00% upper bound on fed funds, pricing a further increase, though weak payrolls have pushed that expectation toward December. Cash above 4% remains available for short-term needs. Twelve months ago, this segment was priced for cuts; it is now priced for hikes. This is where the bond book sits by design, with duration around seven to eight years and laddered maturities, locking in intermediate yields at their highest since before the financial crisis. A position that will get extended in the near future where opportunities arise. The long end (20-year 5.68%, 30-year 5.64%) remains a term premium story rather than a war story, with the Treasury expecting to borrow $628 billion in the fourth quarter alone. The softer jobs report pulled the 10-year back toward 5.16%, a meaningful move but nowhere near enough to reverse September. Abroad, the pressure is more acute. The UK 10-year stands at 5.48%, and the 30-year gilt briefly topped 6% on 1 October, the highest since 1998. The Bank of England held at 3.75% in September with three votes for a hike, and the 28 October Budget gives gilts a policy and fiscal test within a fortnight. The euro curve repriced most at the front, with the 2-year at 3.18% from 2.00% a year ago, while the 10-year remains well below U.S. and UK levels at 3.61%. Credit is behaving better than the headlines suggest. U.S. BBB yields rose 60bp to 6.22%, in line with Treasuries, so investment-grade spreads were essentially unchanged. That is a market repricing the cost of money rather than fearing defaults, and it supports keeping credit at the higher-quality end. For income clients the conclusion from August holds and is stronger: September made fixed income painful to own and made forward yields the most attractive of this cycle. Currency Movements GBPUSD: MoM (%) -2.29% YTD (%) -1.76% EURUSD: MoM (%) -2.14% YTD (%) -3.46% GBPEUR: MoM (%) -0.15% YTD (%) +1.76% The US dollar was the standout in September, strengthening by more than 2% against both sterling and the euro over the month. GBP/USD has now given back its gains for the year and sits 1.8% lower year to date, while EUR/USD is down 3.5% since January. Sterling was broadly flat against the euro in September and remains 1.8% higher year to date. For clients holding assets or spending in a currency other than their portfolio's base currency, these moves can account for a meaningful component of reported returns. What to watch this month: UK inflation (September): 21/10 relevant to GBPUSD + EURGBP US Fed rate decision: 28/10 relevant to USDGBP + USDEUR ECB rate decision: 29/10 relevant to USDEUR + EURGBP DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2026 Dunhill Financial. All rights reserved.

The issue with Roth IRAs in Spain is complex, not least because the US-Spain Tax Treaty was signed before Roth IRAs were established in the US. Generally, the Spanish authorities will consider a Roth IRA to be most similar to a regular, taxable account and will not consider them to be tax-deferred or a pension plan. In terms of tax treatment in Spain, trades inside the account should not trigger a taxable event. If the gains and dividends are not distributed, no tax liability should occur in Spain. However, if the client takes a distribution and is considered tax resident in Spain, it may trigger a taxable event. The Spanish tax authority will likely tax the earnings and growth that are distributed. Importantly, the US Roth IRA rules specifically designate the order in which distributions are categorized. In the US, the original contributions are withdrawn tax-free first, before proceeding to designate withdrawals as earnings and growth. Spain does not use this method. They apply a pro-rata cost basis method, under which every distribution the client receives will be categorized as a proportional mix of original contributions and growth and earnings. Scenario 1: If no distributions taken there will be no tax liability in Spain. However, the client will still need to declare the full amount of the account to the Spanish tax authorities for the Wealth Tax or Solidarity Tax. Which one applies depends on the client’s regional residence and net worth. If the aggregate total of foreign financial accounts (including IRAs and bank accounts) exceeds €50,000, they must be declared on the clients’s Spanish tax return (Modelo 720). Scenario 2: Once again, no tax liability accrues in Spain merely for trading activity within the account. Distribution tax will be calculated as follows: Find the proportion of the account that is attributable to basis and that which is attributable to growth and earnings Apply the growth and earnings proportion to the amount being distributed. This is the amount that will be liable to taxation in Spain. Add this amount to the client’s Spanish savings income base Refer to the Spanish Savings Tax Scale, which is generally 19%-29%, but can be up to 30%. Note that the client cannot claim a Foreign Tax Credit on their US tax return to offset the liability in Spain, as the IRS considers that these distributions should not attract taxation. The client will still need to declare the full amount of the account to the Spanish tax authorities for the Wealth Tax or Solidarity Tax. Which one applies depends on the client’s regional residence and net worth. If the aggregate total of foreign financial accounts (including IRAs and bank accounts) exceeds €50,000, they must be declared on the clients’s Spanish tax return (Modelo 720). Scenario 3: No distribution means no tax liability in Spain. The client will still need to declare the full amount of the account to the Spanish tax authorities for the Wealth Tax or Solidarity Tax. Which one applies depends on the client’s regional residence and net worth. If the aggregate total of foreign financial accounts (including IRAs and bank accounts) exceeds €50,000, they must be declared on the client’s Spanish tax return (Modelo 720). Scenario 4: Taking a distribution will incur a liability in Spain Distribution tax will be calculated as follows: Find the proportion of the account that is attributable to basis and that which is attributable to growth and earnings Apply the growth and earnings proportion to the amount being distributed. This is the amount that will be liable to taxation in Spain. Add this amount to the client’s Spanish savings income base Refer to the Spanish Savings Tax Scale, which is generally 19%-29%, but can be up to 30%. Note that the client cannot claim a Foreign Tax Credit on their US tax return to offset the liability in Spain, as the IRS considers that these distributions should not attract taxation. The client will still need to declare the full amount of the account to the Spanish tax authorities for the Wealth Tax or Solidarity Tax. Which one applies depends on the client’s regional residence and net worth. If the aggregate total of foreign financial accounts (including IRAs and bank accounts) exceeds €50,000, they must be declared on the client’s Spanish tax return (Modelo 720). Planning Ahead Holding a Roth IRA while living in Spain doesn't have to be a problem, but it does take some planning. When you take distributions, how Spain calculates the taxable part, and which wealth and reporting rules apply to you can all make a real difference. Everyone's situation is different, so if you have questions about how this applies to you, please get in touch with our team. We're happy to talk it through. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2026 Dunhill Financial. All rights reserved.

For U.S. citizens living in France and across Europe, the tax consequences of selling an investment can extend well beyond the country in which they reside. Following the Federal Circuit’s August 31, 2026 companion decisions in Bruyea v. United States and Christensen v. United States, a $1 million foreign capital gain could potentially generate as much as $38,000 of U.S. Net Investment Income Tax (NIIT)—even where substantial European taxes have already been paid on the same gain. The decisions reversed earlier taxpayer victories and reinforced the U.S. government’s position that treaty provisions designed to mitigate double taxation do not necessarily override the Internal Revenue Code’s restrictions on using foreign tax credits against NIIT. This distinction can be particularly important for Americans resident in France, as well as U.S. citizens elsewhere in Europe who hold significant investment portfolios, property or other appreciating assets. Under Internal Revenue Code Section 1411, NIIT is imposed at 3.8% on the lesser of an individual’s net investment income or the amount by which modified adjusted gross income exceeds the applicable threshold. Those thresholds are currently $250,000 for married taxpayers filing jointly, $125,000 for married taxpayers filing separately and $200,000 for single and head-of-household filers. Net investment income can include capital gains, dividends, interest, rents and royalties. The difficulty for Americans in Europe is that NIIT operates differently from ordinary U.S. federal income tax. Consider a U.S. citizen resident in Paris who realizes a substantial gain from the sale of a foreign investment. French taxation of the gain may generate foreign tax credits sufficient to reduce or eliminate the taxpayer’s regular U.S. income-tax liability. That does not necessarily eliminate NIIT. As the Federal Circuit concluded in Bruyea and Christensen, the relevant treaty provisions do not provide taxpayers with an independent mechanism for crediting foreign taxes against the Section 1411 liability where the Internal Revenue Code itself does not permit that credit. The result highlights an increasingly important issue for internationally mobile Americans: eliminating regular U.S. income tax through foreign tax credits does not necessarily mean eliminating U.S. tax exposure altogether. For U.S. citizens in France and elsewhere across Europe, this makes advance planning particularly important before realizing significant capital gains, restructuring investment portfolios or disposing of highly appreciated assets. The interaction between local taxation, U.S. federal taxation, foreign tax credits and NIIT should ideally be considered before—not after—a transaction occurs. References: Bruyea v. United States and Christensen v. United States, U.S. Court of Appeals for the Federal Circuit, companion decisions issued August 31, 2026; Internal Revenue Code §1411 (Net Investment Income Tax). DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2026 Dunhill Financial. All rights reserved.

“Banking establishments are more dangerous than standing armies” - Thomas Jefferson One of the most important considerations as you plan your move overseas is banking. Should you open new bank accounts abroad? If so, how easy is it to do? What about your American accounts: should you keep them open, or would it be more beneficial to close them? It’s right to ask these questions while planning your move abroad, as in some cases the decisions you make can result in paying more or less tax after you move. With the right advice though, it’s straightforward to make decisions in your best interest. In this article, you’ll learn about: Should you keep your US bank account when moving abroad? Should expats open a foreign bank account? How can expats open a foreign bank account? Should expats consider a fintech (online-only) bank account? Should you keep your US bank account when moving abroad? When moving abroad, most expats wonder whether it’s worth keeping their bank accounts open back in the states. The main advantages of doing so are that it helps you to maintain your US credit score, it allows you to pay US bills and make transfers to other US bank accounts easily, and it allows you to receive payments from other US accounts without paying bank or currency conversion fees. If your stateside bank won't permit you to use a foreign address on your account, you can use credit unions such as the State Department Federal Credit Union (SDFCU) through organizations like American Citizens Abroad (ACA) to open an account. Having an active American bank account also gives you access to products and services that are only available in the US. Some products are available in the US before the rest of the world, too - such as new iPhones, for example! It often depends on how long you’re moving abroad for, though. If you know that you’ll be back in a year or two, then keeping your US accounts active will save you the hassle of opening new ones when you return. On the other hand, one possible scenario when keeping your US bank accounts active while abroad is that you may still pay state income taxes if the accounts are located in a state such as New York, California, South Carolina, Virginia, and New Mexico. Some expats in fact choose to relocate to a low or no-tax state before moving abroad, so as to be able to keep their US financial accounts without paying state taxes when they move abroad. You might also consider changing your US bank to one that charges less to withdraw and transfer money internationally. Chase Bank is one example of a global banks that caters to expats, and so is worth considering in this respect, in addition to the aforementioned option of opening an account with the SDFCU through the ACA. Citibank also reimburses you for charges incurred when using ATMs out of their network overseas. Should expats open a foreign bank account? Whether expats should open a bank account in the country they’re moving to depends on your circumstances, but if you’ll be based in a single place abroad for a considerable length of time, then you’ll probably need to. If you are going to be working for a foreign employer, or starting a business abroad, a foreign bank account is essential. Furthermore, many basic everyday necessities of living abroad will necessitate having a foreign account, such as renting or buying a home, or paying bills and for services. Having a foreign bank account also means you won’t be charged every time you use your bank card, including fees and currency conversion costs. Many American banks charge fees between 3-5% for each purchase made overseas, for example. How can expats open a foreign bank account? While the rules and requirements vary depending on which country you’re in, more often than not banks abroad are looking for the same information as an American bank. So to open an account as an expat, most foreign banks will want to see proof of ID, such as a driver’s license or passport, and proof of a permanent local address. Some may also ask to see proof of your income, or a local tax identification number. As an example; if you’re an expat living in Seoul and you’re opening a South Korean bank account, you’ll need your passport, your visa, your Alien Registration card, a copy of your address in English and Korean, a certificate of employment and a Korean phone number. While not every country has requirements as stringent as this, the point is that you should always do your research and gather what you need beforehand. Some banks let you open your account online without the need to go to a branch. You can normally check the bank’s requirements on their website. FBAR and FATCA. FBAR and FATCA are reporting requirements for Americans with overseas accounts. Whether you have to file these forms from abroad with your US tax return is based on whether the combined values of all of your non-US financial accounts exceeds the minimum reporting thresholds at any time during a year, which start at $10,000 for FBAR filing. This doesn’t mean having to pay US tax on your overseas bank balances, it’s just a reporting obligation, but an important one to be aware of! Should expats consider a fintech (online-only) bank account? While traditional banks offer a myriad of account types and services, another option for expats is a electronic money provider. Opening an account with a fintech company is often quicker and easier than a traditional retail bank, and the process normally involves just uploading some photos of your ID and other documents in a mobile app. You may also have to go through an identification process where you need to show an ID or passport over live video. Alternatively, some companies ask you to take a selfie in their app to verify that you are the same person as the ID you provide. Two of the most popular fintech institutions for expats in Europe are Revolut and Wise. Wise offers international money transfers at an extremely discounted rate compared with traditional banks. Expats often wonder whether e-money is as secure as traditional banking. In fact, fintech companies have some of the best security available, by necessity to generate customer trust, and account balances are often guaranteed by local governments if the bank fails for any reason, similarly to traditional banks. Fintech providers are also proponents of enhanced security measures such as two-factor authentication and biometric identification. Another useful security feature that they offer is the ability to turn off your card instantly in the app, in case it’s lost or stolen. Of course, one drawback of using a fintech is that these institutions are not banks, and so while great for sending/receiving funds, those funds would not be protected in the case of bankruptcy. Summary Whether or not you keep your account in the US open depends on a range of factors, including whether you expect to return to live in the US (and, if so, when), whether you’ll be visiting regularly, what state you live in (and so whether having an account could mean paying state taxes from abroad), and whether you’ll need to receive money or pay bills in the US. Whether you keep your US account or not, most expats will also need to open a bank account abroad, either for living expenses or to receive overseas income. Whether you choose a traditional bank or fintech solutions for your overseas banking will depend on your requirements. Many expats choose to use a fintech provider when they first arrive, due to the ease of opening them, then they open an account at a traditional bank later on when they need to access other traditional banking services, such as credit, insurance and mortgages, all three of which often serve a crucial function of helping to minimize costs while building your life in your new host country. Opening a bank account abroad can trigger FBAR and FATCA reporting in the US, however your accountant will be able to take care of these requirements for you along with your tax return. Your financial advisor can help you plan your banking, based on your situation. #Banking #FinancialPlanning #FinancialAdvisor #Expats #FinancialDecisions DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. THE INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN.

Written by: Carlo Bertoncello, Luca Biancardino and Giuseppe Calisi The dream of "La Dolce Vita" often leads American retirees to the sun-drenched coasts of Italy. However, once the suitcases are unpacked in a beautiful villa in Liguria, the reality of cross-border taxation sets in. For US citizens, this transition is particularly complex due to the unique "citizenship-based" taxation of the United States interacting with Italy's residence-based system. To illustrate how these cross-border considerations can arise in practice, consider the hypothetical case of John (75) and Susan (66), a retired American couple who have recently established tax residency in Liguria. John and Susan’s Balance Sheet John and Susan Bianchi have accumulated significant assets over their careers. Their primary objective is wealth preservation for their own retirement and eventually for their two children: Giorgia (31), who lives in the U.S., and Federico (36), who resides in Italy. Both children are married and independent, meaning John and Susan are a separate tax household. Their financial situation is structured through two brokerage accounts (one each), one U.S. revocable living trust to avoid US probate, and their individual retirement accounts (IRA). The Balance Sheet With financial planning, it helps to zoom out and take the helicopter view of the entire family net worth as the first step. We look at John and Susan household net worth before stepping into the Italian tax simulation.  A Tax Simulation As Italian tax residents, John and Susan are subject to tax on their worldwide income. In Italy, US Revocable Trusts are generally considered "fiscally interposed" (transparent). This means the Italian Revenue Agency ( Agenzia delle Entrate ) looks through the trust structure and taxes John and Susan directly as the beneficial owners of the underlying assets. Moreover, often the trustees are the same settlors, thus, despite the qualification of the trust by the Italian Revenue Agency (either transparent or not), as the settlors are Italian residents, also the trust will be considered subject to Italian tax law. For the tax simulation we look at the assets in Susan’s and John’s taxable accounts at Interactive Brokers. We will put more ink to paper to look at the details of tax treatment of foreign trusts in Italy in future articles. In future articles will delve further into the specific tax treatment of foreign trusts in Italy.   Redditi di Capitale (Capital Income) This category includes dividends and interest payments. Italy applies different imposte sostitutive  (substitute taxes) depending on the asset type. Combined, we have about €3.9M in their taxable accounts. The assets are structured as such: Let’s calculate the taxes capital income for equities: For the bonds instead, we have to use two different tax rates because the portfolio is split between US Treasuries and global corporate bonds. Let’s look at the tax calculation: Tax rate on white list government bonds: 12.5%  Tax rate on corporate bonds: 26% Cash/Money Market (€301k): Assuming a 3% yield, generating €9,050 of interests. Total Tax on Redditi di Capitale: €25,068 In the above mentioned cases of equities and bonds, it shall be considered that the taxable base is the gross amount of the dividends/interests, as commissions, other costs and US taxes are not deductible from Redditi di Capitale . However, under the Italian-US Double Tax Treaty (DTA), US ordinary taxes might be offset. Taxes on financial instruments are full of exceptions and require a deep knowledge to avoid mistakes: one of these exceptions is about non-harmonized  ETFs. Keep reading for more information.  Redditi Diversi (Capital Gains) This represents profit from selling assets. Unlike the US, where long-term capital gains have preferential rates, Italy taxes realized financial gains at a flat rate. Scenario: John and Susan rebalance their portfolio, selling some equities for a realized gain of $43,094. There is one caveat with holding ETFs in their portfolio and capital gains tax in Italy: Susan and John cannot harvest their losses. We will explain that in a moment, stay with us!  The point is that capital gains, only with reference to ETFs, are considered Redditi di Capitale , that means the capital gains are seen as an interest. On the other hand, capital losses are considered Redditi Diversi . Gains and losses from these two categories of income (Redditi di Capitale and Redditi Diversi) cannot be offset. Thus, capital losses cannot be used to harvest the capital gains from ETFs; however they can be used against capital gains of other financial instruments, such as shares and bonds.  Among the exceptions already mentioned, it must be taken into account that withdrawals from Roth IRA, generally are not recognized as tax-free by the Italian Revenue Agency, so they might be subject to tax in Italy. IVAFE (Tax on Foreign Financial Assets)  This is Italy’s "wealth tax" on financial assets held abroad. It applies to the market value of the assets at year-end. IVAFE applies to the asset values converted to EUR using monthly exchange rates approved by the Italian Revenue Agency. Also checking and savings accounts are subject to IVAFE but only if they exceed the annual average amount of €5K. For checking accounts IVAFE is calculated as a flat tax of €34 per account per annum.  It must be noted that alternative  investments, such as paintings or musical instruments, under certain circumstances must be included in the Italian tax reporting obligation (section RW of the income tax return), but they are not subject to the wealth tax. IVIE (Tax on Foreign Real Estate)  John and Susan own a property in the State of Washington, and being a tax resident in Italy implies paying taxes on your worldwide income. When owning properties outside Italy, tax residents must pay tax on foreign real estate called IVIE. Let’s see how much Susan and John have to pay for their US property and how to report it to the Italian tax authorities?   Usually the taxable base is equal to the purchase price of the property converted at an approved exchange rate at the time of the purchase. Let’s assume that John and Susan bought their US property in March 2009 and paid $325K for buying their property in the State of Washington. For calculating IVIE we need to convert the purchase price to euros at the historical FX rate. For simplicity, we are going to use the average mid rate for the month of March 2009 (USD to EUR 0.78).   Italy allows the deduction of US property tax paid in the same fiscal year. Often, US taxes on real estate are higher than Italian taxes, so frequently happens that IVIE is not due. Total Annual Italian Tax Bill (Estimated) Combining these figures, John and Susan’s estimated annual Italian tax liability on their assets is $52.5K as summarized below: All amounts calculated are presented for illustrative purposes only and are based on multiple assumptions made in order to simplify the reasoning. Special Investigation: The "Non-Harmonized" ETF Hurdle While the simulation above assumes a standard 26% tax rate on equity dividends and gains, John and Susan must navigate a specific hurdle regarding their US-domiciled ETFs. The Italian Regulator and Agenzia delle Entrate  distinguish between harmonized (EU-compliant/UCITS) and "non-harmonized" funds. Because US ETFs do not comply with EU directives, they are classified as non-harmonized. Historically, and according to strict interpretation, income (dividends) and capital gains from non-harmonized funds do not qualify for the flat 26% substitute tax. Instead, they are added to the taxpayer's ordinary income and taxed at progressive IRPEF rates, which can reach 43% (plus regional and municipal add-ons of ~2-3%). Implications for John and Susan: If the Agenzia delle Entrate applies the ordinary income tax rates to their US ETFs: The Dilemma: They cannot switch to European ETFs (UCITS) because the US would view those as PFICs (punitive US tax). They are caught between US PFIC rules and Italian non-harmonized fund rules. Better Alternatives? Direct indexing and individual stocks and bonds. To solve this, John and Susan should consider restructuring their portfolio to hold individual stocks and bonds rather than ETFs. Direct Indexing:  Instead of holding an S&P 500 ETF, they can use a "Direct Indexing" strategy - often available via US custodians for accounts >$100k (i.e. Interactive Brokers) -  to buy the actual shares of the 500 companies or any other major index. Tax Impact:  Income and gains from individual stocks  and bonds  are always taxed at the flat 26% rate in Italy, regardless of whether the company is US or EU-based. Result:  By holding the underlying securities directly, they bypass the "non-harmonized" penalty entirely, securing the 26% Italian rate while remaining perfectly compliant with US tax laws (no PFICs). The Critical Decision: Choosing a Tax Regime To pay these taxes, John and Susan must choose one of three regimes. For US citizens, this choice is critical to avoid conflict with US tax rules (FATCA and PFIC). Let’s clarify what these different regimes are and how they differ from each other.  Option 1: Regime Amministrato (Administered Regime) In this regime, you move assets to an Italian bank. The bank acts as a withholding agent ( sostituto d'imposta ), deducting the 26% or 12.5% tax automatically. Pros : Simplicity. Anonymity from the Italian tax return agency. Cons for Americans: The PFIC Trap :  Italian banks typically sell European Mutual Funds (UCITS). The US IRS classifies these as Passive Foreign Investment Companies (PFICs). PFIC taxation is punitive (often >50% tax rate) and requires onerous reporting (Form 8621). Investment Restrictions: Due to EU PRIIPs regulations, Italian banks usually cannot sell the US ETFs that John and Susan currently own. They would be forced to sell their efficient US portfolio and buy punitive PFIC funds. Option 2: Regime del Risparmio Gestito (Managed Savings Regime) Here, a professional asset manager makes decisions for you. Pros : Taxes paid by the manager, and avoid the non-harmonized ETF hurdle. Cons for Americans:  Tax Mismatch: This regime taxes accrued gains ( maturato ). You pay tax if the portfolio value goes up, even if you don't sell. The US taxes only realized gains. This creates a timing mismatch for Foreign Tax Credits. You might pay Italian tax in 2024 on accrual, but have no US tax to offset it against, leading to potential double taxation. Option 3: Regime Dichiarativo (Declaratory Regime) In this regime, John and Susan keep their assets in their US brokerage accounts. They calculate their own taxes and report them on the Italian tax return ( Modello Redditi PF ). Pros : PFIC & FATCA Compliance: They keep their US ETFs, avoiding the PFIC nightmare. Their US accounts are fully compliant with FATCA. Control: They control when to realize gains, allowing for tax planning. Foreign Tax Credits: The timing matches. They pay Italian tax on realized gains/income, which generally aligns with the US system, allowing them to claim the Italian tax paid as a credit on their US return (Form 1116) to reduce US taxes. Cons : Requires a knowledgeable commercialista  (Italian equivalent of CPA) to calculate the taxes (converting USD to EUR) and file the return. Even better? Working with a team of tax professionals in Italy and the U.S. who can support you with both jurisdictions.  Option 4: wealth planning using structures Italian law permits the use of specific legal structures, such as holding companies or Italian trusts, which may offer different tax treatment depending on structure and implementation. It is crucial to verify that these options align with individual financial needs and goals, as they necessitate specialized cross-border planning. We will delve deeper into these structures in future publications. Stay tuned for further insights. Conclusion: The Verdict For John and Susan, and American expats in their position, the Regime Dichiarativo  may provide the most coherent alignment with U.S. tax rules. However, the appropriate regime depends on individual circumstances.Adopting the Regime Amministrato  or Gestito  would require moving assets to Italy, likely forcing the sale of their US portfolio and the purchase of PFIC classified European funds. A tax disaster in the eyes of the IRS. By staying in the Regime Dichiarativo : They satisfy FATCA:  Their US accounts are transparent and compliant. They avoid PFICs:  They retain their efficient US domiciled financial assets (ideally in the form of single stocks and bonds). They may optimize Foreign Tax Credits:  They pay the (total amount of the taxes in €) in Italian taxes via the F24 model and claim this amount as a credit on their US tax return, mitigating double taxation. Living in Liguria offers a wonderful lifestyle, but it requires a "Declaratory" approach to finance: keep your assets American, but do your full Italian reporting. The lesson from Susan and John's story is that building their new life in Liguria is possible, and how investment strategies cannot work away from your life strategy. It’s more than just about growth or income, it’s about positioning your assets in the right places, with the right tax structure that supports the life you have chosen. And sometimes, it is not possible to do it all yourself. With the appropriate cross-border financial and tax advice, these are surmountable hurdles. Don’t let them distract or derail you from the life you want to live.    When you want to help other people tell them the truth, when you want to help yourself tell them what they want to hear.  — Pablo Picasso Want to learn more form Carlo Bertoncello and Luca Biancardino ? Visit their website: BertoncelloBPA or email them at segreteria@bertoncellobpa.it DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2026 Dunhill Financial. All rights reserved.

The UK government introduced an advantageous savings vehicle in 1999 and has increased the maximum amount that we can save in those several times since. At the time of writing in 2023, we can contribute up to £20,000 to such a plan annually. There are 4 types of ISA: Cash ISAs - A Cash ISA functions mostly in the same way as a standard savings account. However, if you have a Cash ISA, you will not pay tax on the interest you earn, whereas if you have a savings account with a bank or building society, you will pay Income Tax on earnings over £1,000. Stocks and Shares ISAs - Your money is invested in assets like shares, bonds, property, and commodities in a Stocks and Shares ISA (also known as an investment ISA), and you don't have to pay tax on capital gains or income (interest and dividends). Innovative finance ISAs - You can become a lender with an ISA by lending to qualified individuals and businesses using an online peer-to-peer lending platform in exchange for a defined amount of interest over a certain length of time and paying no tax on the interest you earn. Lifetime ISAs - You can save for your first home and/or retirement by contributing to a Lifetime ISA, and you won't have to pay tax on your earnings or capital gains. The government will add 25% to your investment (maximum £1000). Your maximum contribution for the year is £4,000 and if you are not using the money for your first home, you can access funds after turning 50. Cash ISAs are considered typical international bank accounts in the United States, with interest taxed at ordinary rates. When it comes to stocks and shares ISAs, though, you'll need to be cautious in determining the underlying investments. If the investment is in individual shares or bonds, the income is treated similarly to interest from a cash ISA, with income flowing to the appropriate section of the return (for example, schedule B, D, etc.) based on the nature and classification of the income produced. We will cover all three of the issues that are controversial regarding setting ISAs up for Americans in the UK. The three issues are PFICs, HMRC reporting funds, and the tax situation between the jurisdictions. PFICs If you walk into many of the high street banks, they won’t even permit you to buy one of their off-the-shelf ISAs (except for a cash ISA). With this, they are actually doing you a favor as the IRS in the United States would classify these investments as PFICs (Passive Foreign Investment Companies), which can become very costly from a tax vantage point. You can find plenty of information on the internet on why Americans should avoid this at all costs, even if you take the QEF election. HMRC The HMRC has a strict list of funds that meet their qualifications and are approved as offshore reporting funds. We utilize this guideline even for ISAs to keep all our clients’ portfolios consistently independent of whether they invest in a tax-advantaged wrapper or in a general investment account. Tax Situation The real reason that funding an ISA becomes controversial for Americans is the tax situation. In the UK, the growth and distribution of an ISA will not be taxed. However, the US does not recognize this tax advantage and will, therefore, tax the account as if it were a regular investment. So, why would we want to shift the tax burden from the UK to the US? Simply because US capital gains tax rates on passive income are lower than UK tax rates. For the UK tax year 2023, the tax-free dividend allowance is £2,000 (reducing to £1,000 from April 2023 and £500 from April 2024). Dividends above this level are taxed at: 8.75% (for basic rate taxpayers) 33.75% (for higher rate taxpayers) 39.35% (for additional rate taxpayers) Capital gains also have a tax-free allowance of £12,300 (reducing to £6,000 April 2023 and to £3,000 April 2024), but thereafter you will pay 20% taxes (unless you're in the basic rate tax band) which, apart from those making a significant salary, is higher than the rate in the US. Therefore, you're better off paying US taxes and avoiding UK taxes by placing the money in an ISA. With all these complications of even setting up an ISA for this small portion of the American population in the UK, you will find only a few firms that offer them properly. Dunhill Financial has partnered with Morningstar Wealth Platform (formerly Praemium) to offer compliant portfolios that can be utilized in ISAs. Morningstar Wealth Platform (formerly Praemium) issues 1099s to make your US taxes as simple as possible and we ensure that we use no PFICs (i.e., all US-listed securities) and that all funds are HMRC reporting funds. To learn more about this offering, please see our portfolios here . Get in touch with our expert advisors to see how they can help in your situation. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2023 Dunhill Financial. All rights reserved.

When the government approaches or reaches its debt limit, it creates a situation where there is a risk of default on the country's obligations, which can have serious economic consequences. This is the typical card that the radical right plays in budget talks and we have seen it twice in the last decade. In the event that both parties can't come to an agreement, we would most likely see: Sharp increase in unemployment Double digit drop in GDP US Dollar dropping by Brexit-sized levels. That being said, it’s still only a single digit probability and therefore we aren't making any one-sided trades that could go against us when it’s more likely approved (gold, volatility or inverse funds). We may make some tweaks to decrease our USD exposure and invest more in non-US assets to play into longer term trends but also help minimize the losses of this black swan event, should it materialize. The last time the radicals pulled this, Warren Buffett's Berkshire Hathaway's debt became better rated than US government debt. These shenanigans have increased the price to borrow across the board and therefore we are all worse off for this behaviour. That being said, the government has more tools in their back pocket to avoid an outright default and it would be in their best interest to do so. While the debt ceiling brinkmanship often generates concern and uncertainty among investors, there are several reasons why we shouldn't be concerned. 1. Historical Precedence: The US has experienced debt ceiling debates and temporary impasses in the past, but it has always managed to avoid defaulting on its debt obligations. The government has implemented various measures, such as employing accounting techniques or utilizing available funds, to ensure that debt payments are made on time. 2. Political Incentives: Both major political parties understand the potentially catastrophic consequences of a default. Despite differences and disagreements, lawmakers have consistently demonstrated a willingness to reach a compromise and raise the debt ceiling to avert a crisis. The debt ceiling brinkmanship is often a part of political negotiations and posturing, rather than a genuine intent to default. 3. Economic Impact: A default on US debt would have severe repercussions, not only for the United States but also for the global economy. It would likely lead to increased borrowing costs, destabilize financial markets, and erode investor confidence. Recognizing this, policymakers have a strong incentive to avoid such an outcome, providing reassurance to investors. 4. Central Bank Interventions: In the event of a debt ceiling crisis, central banks, including the Federal Reserve, can play a crucial role in stabilizing financial markets. They have the ability to inject liquidity, provide emergency funding, and implement measures to mitigate the impact of any potential default. 5. Long-Term Creditworthiness: The United States has a long-standing reputation for honoring its debt obligations. Despite periodic political brinkmanship, the country has consistently maintained its status as a safe haven for investors. The strength of the US economy and its commitment to fiscal stability make it unlikely that a temporary debt ceiling crisis would significantly undermine its creditworthiness in the long term. While it is important to monitor the progress of debt ceiling negotiations, investors should take into account the historical track record, the economic incentives, and the actions that policymakers and central banks can take to manage any potential crisis and the fallout. If you have any questions, don't hesitate to contact us. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2023 Dunhill Financial. All rights reserved.

We’ve been reading a lot about the idea of reducing one’s carbon footprint as one of the main means to reduce carbon emission which are deemed to be the main factor in enhancing global warming. If you’re curious about checking out your carbon footprint, have a look here [ Carbon Footprint Calculator ]. While an active approach to changing your lifestyle based on carbon emissions might not be for everyone, it can still be an interesting thought process to review what we eat or where we travel and approaching our regular habits from a less obvious perspective. Have you, for example, thought about where that apple comes from that you’re eating? Supermarkets offer a wide variety of apples which can be locally source but also internationally from another country or even another continent. There’s a couple of interesting initiatives that aim to tackle the emission problem from various stand points. For example, bio-bean [https://www.bio-bean.com/renewals/coffee- recycling/] is a UK company using coffee grounds to create logs and pellets. With this they reduce the gases that develop during the natural decompositions process and create a new energy resource at the same time. Another fun option is growing some of your fruit or veggies at home. While this is not as easy for metropolitans without a garden, there’s now even options to grows your herbs and smaller fruit and vegetable at home with indoor smart gardens. Your harvest is organic and the energy you need to maintain it is less than having your tomatoes shipped from e.g. Italy to Germany. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2023 FMeX. All rights reserved. Distributed by Financial Media Exchange.

A well-structured estate plan can be invaluable to you and your family. It is common for people to put off planning their estates. After all, no one wants to anticipate his or her own death. In addition, many people may believe that only the wealthy require estate planning or that all that is involved is tax planning, which can be done “later.” They may well be wrong on both counts. Your level of wealth and the ultimate tax consequences of your estate become secondary to the planning and care of your family and other heirs. A well-structured estate plan, particularly for American Expats can be invaluable, especially when dealing with cross-border jurisdictions. Through it you can control the distribution of your assets and possessions, as well as name guardians for your children or plan care for other dependents. While the estate planning process can raise some difficult emotional and personal issues, your heirs will be glad you did it, and you will know that your wishes are assured. How to Begin? Your first step should be to assemble a competent, professional estate planning team. Your attorney, financial professional, insurance agent, bank trust officer, and/or accountant are all possible members of your team, depending on the size and complexity of your estate. They can help you complete an analysis of your current estate by looking at your financial position as of today and helping you analyze your family’s needs for the future. Does a family member have special needs or require medical attention? How much will an education cost when your children reach college age? How will your family’s overall cost-of-living requirements change? How will estate taxes affect your assets as they are currently held? The answers to these questions can help you develop an estate plan that will adequately provide for your family’s needs. What Information Should Be Gathered? A thorough estate analysis requires gathering any and all materials involving current or future income, property ownership, insurance, and legal arrangements already in place. This includes records of the following: Current income from employment and all investments Any expected deferred compensation All retirement benefits, from Social Security (including survivors’ benefits), IRAs, pensions, and profit-sharing plans Investment documents, certificates, passbooks, etc. Deeds to primary and vacation residences Personal property Life insurance policies of which you are the owner, the insured, or the beneficiary Trust agreements, if any Your will, if you have one Current and expected debts and obligations, including mortgage and loan balances, real estate liens, taxes payable, consumer debts, and estimates of funeral costs and estate settlement expenses. Once assembled, a complete analysis can begin, giving you the basis for a comprehensive estate plan. 7 Steps to Estate Preservation If you begin planning in a timely fashion, there are methods that may allow you to take steps to preserve your estate and minimize estate taxation while satisfying both the Internal Revenue Service and the courts. You can also potentially save your heirs needless effort and expense. Consider the following steps: Use Your Applicable Exclusion Amount to the Fullest. For 2022, the personal federal estate tax exemption amount is $12.06 million (it was $11.7 million for 2021). This means that when you pass away, the value of your estate is calculated and any amount more than $12.06 million is subject to the federal estate tax unless otherwise excluded. A married couple has a combined exemption for 2022 of $24.12 million Plan a Gifting Program. Further tax shielding is gained through use of the annual $16,000 gift exclusion, which is indexed annually for inflation. This allows gifting (in the year 2022) of up to $16,000 each, to any number of donors annually without payment of gift tax. (When a spouse is involved in the gifting program, the annual exclusion will increase up to $32,000). Provision must be made for the immediate use of the gift by the donor; gifts of future interest will not qualify. Professional assistance and careful structuring of your gifting program are, therefore, essential. Draft a Will. A will is a formal, legal document instructing your survivors in the settlement of your estate. It is crucial to the success of an estate plan that your will be properly written by a qualified, experienced legal professional and witnessed simultaneously by two parties. Establish Trusts. Utilizing trusts can be an excellent method of accomplishing long-term estate planning goals. Trusts, while seemingly complex, are simply very powerful tools designed to help individuals handle a variety of family and tax-related problems. Plan Your Charitable Bequests. The value of all property transferred for “charitable” or “public” purposes is deductible, with certain limitations, when determining valuation of an estate for tax purposes. Utilize Life Insurance to Its Fullest Advantage. Life insurance can fulfill two important functions in your estate planning. First and foremost, it can provide for the immediate cash needs of your spouse or other beneficiaries. Second, and of equal importance, the use of an irrevocable life insurance trust (ILIT) can prevent inclusion of your life insurance proceeds in your estate and help your executor pay your estate tax bill without having to sell estate assets. Title Assets Properly. The simplest and least expensive estate planning technique for married couples is to take title to assets as “joint tenants.” This will exclude assets from probate and may eventually save legal costs. [Note: Residents of community property states should remember that all income and assets acquired by a married couple living in those states, except for individual gifts and inheritances, are considered community property, half of which is included in each spouse’s estate valuation.] Remember: You Can’t Take it With You The careful planning of an estate can require a great deal of expertise. If you surround yourself with a professional, supportive team as you begin the process, work through its many stages and adjust your plans over time, you can prepare yourself – and those you love – for the future. Get in touch with our expert advisors to see how they can help you navigate the bumpy road, so you can enjoy the journey ahead. #EstatePlanning #FinancialPlan #RetirementPlanning #FinancialAdvisor DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 FMeX. All rights reserved. Distributed by Financial Media Exchange.

Living and working abroad can be an exciting, satisfying and profitable experience. But on the flip side, there are tax considerations that come into play, as well as concerns about planning for a secure retirement. One of them is the ability to make regular contributions to an individual retirement account (IRA) from wages earned abroad. While in general the rules governing IRA contributions remain the same whether the earner lives in the United States or outside the country, there are additional tax considerations that govern foreign earned income. In broad generalities, the first $ 126,500 earned as a foreign employee or though self-employment abroad is eligible for a foreign earned income tax exemption. Expats may also claim a tax exemption for foreign housing costs. Taking advantage of such exclusions, though, can limit the dollar amount of individual contributions to either traditional or Roth IRAs. The earnings cap for a Roth IRA for a single filer is $161,000 modified adjusted gross income (and phase outs start at $146,000), so the window of eligibility for "taxable income" can become rather narrow. For married filing jointly, the limit is $240,000 with phase out starting at $230,000. Regular IRAs bear no income cap, but contribution eligibility is available only to those with wages or earned income greater than the foreign exclusion amounts. An alternative for American expats is to claim the foreign tax credit on taxes paid in their country of residence. By doing this, the foreign income is taken into account in the tax calculation but the taxes owed in the US will be offset against the taxes already paid in the country of residence. All earnings are then deemed taxable income which increases the eligibility for IRA contributions. This works in high tax states in Europe, but not so well in low tax states like the UAE. The wise course of action, for any American earning money in a foreign country is to consult with a reputable tax attorney or accountant. Planning is necessary in order to reap the extensive benefits of living and working abroad, in addition to assuring a secure future by continuing contributions to retirement accounts. Get in touch if you need guidance, one of our qualified advisors would be more than happy to assist you. All numbers referenced are for tax year 2024. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN.

One man's trash is another man's treasure as the saying goes. This is also the case when it comes to investments. If you happen to have a loss in your accounts, a good strategy might be to sell it to harvest the loss. Why? Simple, you can offset $3000 of loss against your earned income and you can carry forward the rest of the losses indefinitely to pair against future gains. That way you can prevent large taxable gains over the long term. What happens if I really like the stock long-term? You can use one of two strategies: I - Double up your position in the short term and after you avoid the wash sale rule (30 days), sell the first lot. II - Sell the first position, buy a correlated position and switch back after 30 days. For instance, sell Coke and buy Pepsi, after 30 days you can switch back. The rule defines a wash sale as one that occurs when an individual sells or trades a security at a loss, and within 30 days before or after this sale, buys a “substantially identical” stock or security, or acquires a contract or option to do so. (Source: Investopedia) Our advisors would be happy to help you with similar strategies to help you manage your losses. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.