Little update from me:
https://www.internaxx.com/expat-investor/smart-investing/after-new-regulations-heres-how-canadians-europe-can-build-portfolioA good sum up of the restrictions with alternatives (only for Canadian citizens and their sweet, sweet non-citizenship based taxation).
- If you don't live in Europe, this won't affect you.
- If you already own ETFs that trade on the Toronto Stock Exchange or the New York Stock Exchange you don't have to sell them.
- You can continue to hold your current ETFs if they trade on the Toronto or the New York exchanges, but you can't add money to them.
- All EU brokerages have been asked to comply with this rule. The rule has even extended to the U.S. brokerage, Interactive Brokers, which enforced the rule in June for its European-based clients.
- Canadians in Europe that use Canadian-based brokerages won't be affected.
@Geographer, maybe Vanguard meant in a broad sense that you can keep investing as in Points 2/3. I know that Germans who invest in EU ETFs and then move to the US are forced to liquidate their EU ETF shares or transfer them out of the account to a non-US-person (normally a family member). Holding is way better than forced liquidation, even if it is clearly lacking.
Point 4 also a confirmation that the info in the original post is now outdated: IB may have allowed US-ETF purchases in April of 2019, but in my experience mid-June 2019 and this linked post it no longer does.
KORREKTION 25.08.2019: >> Post is from 2018! BikeLover was able to purchase in April and July 2019! I could not. For this and more confusion, read newer posts. Point 5 does open the door for some Canadian, Cayman, or Sengalese broker... not just US.
So this echoes and expands
@flipboard 's sentiment: the goal is a non-EU broker without EU ties that accepts non-resident customers. Expect even more taxes and paperwork if a non-US broker, though.
> I am still looking for this, let's look together!
I found one small US broker who seems up for this, but am a bit skeptical as there is no track-record. The customer service did say I could purchase ETFs as I am not a EU citizen. My understanding of the policy is that it applies to EU residents, however, and thus my initial impression is a little dampened. At the same time, if I can purchase them and the regulation kicks in, I don't think I would get in trouble as a customer.
> Does that seem plausible?
> Anyone have experience with Toledo Trade?
Also, I feel like this question might deserve its own thread, but it is a viable way:
> does anyone know any no frills, low fee RIAs who might support Mustachians abroad?
Finally, a useful resource which may update over time: the German broker Lynx accepts US citizens customers (most don't), but has EU ties and therefore all US, Canadian, Mexican, Hong Kongese and Australian ETFs are currently out. You can search for your unavailable ETF here:
https://www.lynxbroker.de/service/gesperrte-etfs/#Amerika So many to not be able to choose from!
If the funds manager decides to become EU conform and make KIDs (Vanguardian angel, are you listening?), then they could be purchased by retail client EU residents. Optimistically, I would hope that if enough people complain to the goodhearted people at Vanguard, maybe they will make it happen. Heck, if they would let me make the KID for them I would. I can't imagine it's any worse than the other things I've had to rule out (i.e. becoming a US RIA and setting up an LLC to be classified as a MIFID professional) and it has a lot more incentive than securing my paltry peach fuzz stache for myself.
> communicate our plight loudly to Vanguard!