# Investments in Italy:



## sardoc (Mar 28, 2016)

Good Day to all. I am a US citizen resident in Italy for the past 25+ years. Until recently I kept most my savings in the U.S. recently I transferred these funds to Italy and due to tax requirements of both countries, in particular PFIC and Foreign Life Insurance requirements in US, I need some investment advice. Any help including investment consultant recommendations will be appreciated.


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## Bevdeforges (Nov 16, 2007)

In my experience, the "traditional" investment advisers outside the US don't normally have much understanding of the US tax laws - which leads to the old "you can't open an account if you are a US citizen" trip. OTOH, it can depend on just how much in investments you have. I know of some folks here in France who have modest "assurance vie" accounts and who report them on their FBARs each year but don't bother with the various elaborate forms for PFICs and what have you. So far so good - they have never had any comeback from the IRS or Treasury.

Once you get involved with paid investment consultants who claim to know something about the US regs, you'll probably find that your US reporting situation gets very complicated very quickly.
Cheers,
Bev


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## NickZ (Jun 26, 2009)

When the US government cracked down on foreign US accounts many non US banks started refusing US clients. It isn't a problem with US tax laws. They just don't want the risk of being charged by the US government under the new laws. 

I'm not talking about small outfits either. My bank does a lot of expat business and basically pulls out the garlic and holy water to make sure you aren't an US citizen.

But it sounds like the OP already has an account. Doesn't the US embassy keep a list of tax lawyers/accountants?


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## Bevdeforges (Nov 16, 2007)

NickZ said:


> But it sounds like the OP already has an account. Doesn't the US embassy keep a list of tax lawyers/accountants?


Some do, some don't. The US Consulate in Paris used to have a pretty good list of attorneys and tax accountants - but being on the list was no recommendation. They simply put out a call each year for "English speaking" practitioners who wanted to be included. I've noticed the lists are getting slightly out of date now that the IRS offices outside the US have been shut down and the personnel sent back home.

It might do to find some of the US expat groups in Rome or other Italian cities. Very often these groups can point you to a US-based tax or financial adviser - usually one of their members or someone who sponsors the group through advertisements or donations. (Makes it "uncomfortable" for them to hang around the group if they get a rep for bad advice.)
Cheers,
Bev


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## sardoc (Mar 28, 2016)

Thank you Bevdeforges & NickZ for the help and advice. I have tried to contact two tax consultants from a Rome Expat site; one only advises corporations, the other didn’t respond. My Italian bank, one of the largest in Italy, is has tried but until now has not come up with anything. In 2015, I liquidated and declared as PFICs three small Italian Mutual funds for all years required. I had an Italian Life Insurance like the French Assurance vie which I thought was safe. Then I found out that depending on the CPA or tax lawyer you are talking to it is definitely a PFIC or may be a PFIC. Also, it is possible that if it doesn’t meet certain criteria, it can be more toxic than a PFIC, incurring Excise Tax and yearly mark to market reporting. Finally, there is proposed legislation in Congress with more surprises for foreign life insurance holders and I doubt if things will improve. Regards.


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