Foreign Ownership of U.S. Financial Assets

EPGD Law Foreign Reporting

Foreign ownership of U.S. assets has grown significantly over the past 20 years as a result of more globalized financial markets.

How much Foreign Investment is in the U.S. Stock Market?

As of July 2019, foreign ownership of U.S. stocks totaled $7.7 trillion, a record high. This significant amount of investment can be contributed to the technology boom that is influencing financial markets. U.S. tech companies like Apple, Google, and Amazon draw a lot of foreign investment.

Do Foreign Investors Pay U.S. Taxes?

The U.S. tax ramifications differ depending on the investors status as a U.S. resident versus a Non-Resident Alien (“NRA”). The U.S. tax implication for NRAs are significantly more beneficial.

Generally, U.S. residents fall under the category of U.S. tax residents and pay tax on their worldwide income. This category includes green card holders and most visa holders.

On the other hand, NRAs only pay tax on income that is considered “U.S. source income.” So, if you are a foreign investor in a U.S. company that pays you a dividend, you must pay a 30% U.S. tax on the dividend income. However, capital gains from the sale of U.S. stocks are not subject to any U.S. tax liability.

EPGD Business Law is located in beautiful Coral Gables, West Palm Beach and historic Washington D.C. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.

*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

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Eric Gros-Dubois

Eric P. Gros-Dubois founded EPGD Business Law in 2013 and is the current head of the firm’s corporate, estate planning, and tax practice, and manages the firm’s Washington D.C. office. With a JD and MBA, and a specialization in finance, Eric is able to step back and view the legal world through a commercial lens while also acting as a trusted business advisor for his clients. He does his best to be solutions oriented, and tries to think like a business owner, not just a lawyer.


*The following comments are not intended to be treated as legal advice. The answer to your question is limited to the basic facts presented. Additional details may heavily alter our assessment and change the answer provided. For a more thorough review of your question please contact our office for a consultation.

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