Living Abroad with Assets in the United States

A person who lives outside the United States and is not a U.S. citizen holds U.S. securities, a brokerage account, a house, a share in a U.S. company or a retirement account from years of work here. The U.S. estate tax reaches these assets above USD 60,000, the U.S. income tax reaches their income, and at death an institution freezes the account until the estate is cleared. The firm’s attorneys measure the exposure and arrange the holdings so that the family is not caught by it.

Authorities on this page§§ 2101 to 2106§§ 2501, 2511§ 871§ 6018Treas. Reg. § 20.6325-1Form W-8BEN

Law stated as of October 2026

In brief.

The estate of a nonresident who is not a citizen is taxed on U.S.-situs property at rates up to 40 percent above USD 1,000,000, against a credit of USD 13,000, which shelters USD 60,000 (sections 2101 and 2102(b)).
Shares of U.S. corporations and U.S. funds, cash with a broker, U.S. real estate and tangible property in the United States are U.S.-situs; bank deposits, portfolio debt, life insurance and shares of foreign corporations are not (sections 2104 and 2105).
Lifetime gifts of intangible property, U.S. shares included, are outside the gift tax of a nonresident; gifts of U.S. real estate and tangible property are not (sections 2501(a)(2) and 2511(a)).
The income tax takes 30 percent at source from U.S. dividends, or the treaty rate on Form W-8BEN; portfolio interest, bank interest and gains on securities are not taxed.
A convention with the country of residence may remove the estate tax on shares and accounts altogether, but the return and the transfer certificate remain where the U.S. assets exceed USD 60,000.

What is happening

For the estate tax, the United States looks at a nonresident’s assets one by one. Shares issued by a U.S. corporation are U.S.-situs wherever the account is kept, and so are U.S. mutual funds and exchange-traded funds, cash held with a broker, U.S. real estate and tangible property located here (section 2104; Treas. Reg. § 20.2104-1). Deposits with a U.S. bank, bonds within the portfolio interest exemption, the proceeds of insurance on the owner’s life and the shares of a foreign corporation are not (section 2105). On the U.S.-situs estate the tax runs from 18 to 40 percent, the top rate applying above USD 1,000,000, and the only credit is USD 13,000 (sections 2101 and 2102(b)); the estate of a citizen or domiciliary, by contrast, has a basic exclusion amount of USD 15,000,000 in 2026. A return on Form 706-NA is due within nine months where the U.S. assets, increased by adjusted taxable gifts, exceed USD 60,000 (section 6018(a)(2)), and a U.S. custodian releases U.S.-situs property only against the IRS transfer certificate (Treas. Reg. § 20.6325-1). The situs of a U.S. retirement account is not decided by statute; practice treats the account as U.S.-situs.

The gift tax of a nonresident reaches only U.S. real estate and tangible property situated here; a gift of U.S. shares or of a brokerage account is not taxed (sections 2501(a)(2) and 2511(a)). The income tax takes 30 percent at source from U.S. dividends and other fixed income, reduced to the treaty rate on a Form W-8BEN that carries the owner’s foreign tax identifying number (section 871(a); Treas. Reg. § 1.1441-6); portfolio interest, interest on bank deposits and gains on the sale of securities are not taxed to a nonresident (section 871(h), (i)). Rent from U.S. real estate is taxed on the gross amount at 30 percent unless the owner elects to be taxed on the net income, and the sale of U.S. real estate is taxed as if the seller were in business here, with withholding of 15 percent of the price (sections 897 and 1445). Fifteen conventions change the estate tax picture: the six of the domicile type leave shares and accounts to the country of residence, and most of the others grant a pro rata share of the unified credit.

Holding	Estate tax	Gift tax	Income tax at source
Shares of U.S. corporations, U.S. funds and ETFs	U.S.-situs	No	30 percent on dividends, or the treaty rate
Shares of foreign corporations and foreign funds	Not U.S.-situs	No	None
Deposits with a U.S. bank	Not U.S.-situs	No	None on the interest
Cash with a U.S. broker	U.S.-situs	No	Interest the broker credits is not clearly exempt; many custodians withhold
U.S. Treasury and corporate bonds (portfolio debt)	Not U.S.-situs	No	None on the interest
U.S. real estate	U.S.-situs	Yes	30 percent of the rent or net election; 15 percent withheld on a sale
Shares of a U.S. company founded or acquired by the owner	U.S.-situs	No	30 percent on dividends, or the treaty rate
U.S. retirement accounts	Not decided by statute	No	30 percent on distributions, or the treaty pension rate

What has to happen, in order

Establish status and domicile
Citizenship, immigration history, where the home and the family are; a green card holder living abroad may remain a U.S. domiciliary for the estate tax (Treas. Reg. § 20.0-1(b)).
Inventory the U.S. assets by situs
Account by account, with the issuer of each security, the type of each cash balance and the holder of each real estate title.
Measure the exposure
The U.S. estate tax at death under the Code and under the convention of the country of residence, and the tax at home on the same assets.
Decide the holding structure
Direct holding, a non-U.S. fund or holding company, joint ownership, a revocable trust with a U.S. trustee, beneficiary designations: each changes the tax, the probate and the release at death.
Put the documentation in order
A current Form W-8BEN at every institution with the treaty claim and the foreign tax number; the net election for rental property; the identification numbers the institutions require.
Write the wills
A U.S. will for the U.S. assets, coordinated with the will at home, or one will that both systems accept; the executor and the ancillary probate the U.S. assets will need.
Review on each change
A move, a marriage, a new account or a change in the law: the structure is checked against the facts.

How the firm helps

The firm’s attorneys advise foreign nationals and their advisers on the U.S. side of their wealth, and act for the family when the plan is put to the test.

The written exposure analysis: situs, Code and convention, with figures.
The holding structure: the choice among direct holding, non-U.S. vehicles, joint ownership and trusts, and its implementation with the custodians.
The U.S. will and its coordination with the will at home.
The documentation at the institutions, Form W-8BEN included, and the U.S. income tax returns where any are due.
The estate itself, when the time comes: Form 706-NA, the treaty claim, the transfer certificate and the release.

Initial consultation

What documents to prepare for the initial consultation

The latest statements of every U.S. account, showing the securities held
Deeds and purchase documents of U.S. real estate, with any mortgage
Documents on U.S. company interests: formation documents, shareholder agreements, latest financial statements
Statements of U.S. retirement accounts and the beneficiary designations
Passports, U.S. visas or green card, and the history of residence in the United States
Existing wills and trust documents, in the United States and at home
Forms W-8BEN on file with the institutions, if any
U.S. tax returns filed in recent years, if any
An overview of the assets outside the United States and the family situation

Copies are sufficient. The firm sets up a secure portal for the documents and reviews them before the consultation.

Where a convention applies

Under the conventions with Austria, Denmark, France, Germany, the Netherlands and the United Kingdom, U.S. shares, funds and accounts of a resident of the other country are in general taxable only there; the United States keeps real estate and business property. Under the other conventions the credit is prorated to the worldwide estate. Without a convention, the Code applies in full.