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After moving out of the US, should I wait until I'm no longer a resident for tax purposes before investing in EU-domiciled accumulating ETFs?

Personal Finance & Money Asked by RareBox on February 14, 2021

I’m a EU citizen (and US non-citizen) who recently moved back to EU from the US. I liquidated my US investments and my plan is to invest in EU-domiciled accumulating index fund ETFs (such as VUAA).

I’m a US resident for tax purposes for this year.

Since non-US ETFs are classified as PFICs, I’m concerned that my tax situation would become complex for this year. Many resources, such as Bogleheads wiki, strongly recommend to avoid PFIC taxation which seems to be designed as punitive.

What should I keep in mind if I want to invest in such ETFs this year? Or should I just wait until the next year when I’m no longer filing US taxes as a resident?

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