While the United States Stock Market is regulated by United States law, there are no specific laws that prohibit non-US citizens from investing in the United States Stock Market. Several international brokerages allow foreigners to trade on the United State Stock Market; however, more documentation is generally required. For United States citizens, brokerages usually ask for your social security number, but that isn’t an option for a foreigner.
What Documentation May Be Required?
International brokerages may ask for your passport, national I.D. card, driver’s license, alien I.D. card, and proof of your address before you can begin investing on their site.
Tax Implications
United States investors pay capital gains tax which depends on whether you held the stock for under a year or over a year. However, foreigners are not subject to capital gains tax. Instead, they will pay 30 percent on their investment income, including any dividends received. In some situations, you may be subject to lower rates.
Real Estate
In addition to investing in the United States Stock Market, some investors are attempting to buy up United States real estate as an investment option.
Golden Passport Crackdown
It was announced in March that there would be a crackdown on golden passports. A golden passport ticket is a citizenship by investment, allowing wealthy individuals to receive citizenship or residency in exchange for investing a certain amount of money into the country.
Golden Passport Eligibility in The United States
In the United States, the EB-5 program provides foreigners with green cards if they have invested a minimum of $1.8 million in the United States and created a minimum of 10 full-time jobs for United States workers. This program allows individuals from other countries to invest in the United States economy and help U.S. citizens obtain full-time jobs while giving them the ability to live the American dream by moving to the United States and owning a business.