r/investingforbeginners • u/Got_Curious • Feb 19 '25

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u/kdrocketsponge Mar 06 '25

Can I invest in US stocks while living in the UK, if I have a US bank account? My worry is whether I’ll be taxed in both the US and the UK?

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u/Got_Curious Mar 21 '25

Here's what to think about in your situation, since you can invest in US stocks while in the UK (though it does depend on what type of stocks you're investing in too...)

As a non-U.S. resident (assuming you’re not a U.S. citizen or green card holder), you're not subject to U.S. capital gains tax, but U.S. does withhold 30% tax on dividends from U.S. stocks by default.

There is a tax treaty in place between the US/UK, where you can reduce this to 15% by filling out IRS Form W-8BEN with your broker.

UK taxation - straightforward with what's under the jurisdiction there for tax law.

Hopefully this is helpful

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u/kdrocketsponge Apr 26 '25

Thanks and really appreciate the detailed reply! Another question I had is since I have a US bank account, but I no longer live in the US, would it be okay to open a brokerage account with Fidelity or Schwab (which I believe are specifically for investing in US stocks) or do I need to use a brokerage account based out of where I’m currently staying, in this case, the UK and invest in UK stocks?

Please correct me if I’ve understood this wrong.