Foreigners buy U S Mutual Funds?

[Fred Lee]

Is it possible for a foreigner lives outside of U S to buy U S mutual funds
or stocks? Assuming they have U S dollars in U S bank. Most importantly,
what is the tax implications?

Thanks in Advance.

Fred

[Michael Sullivan]

In article <71l1qd$b66$1...@clarknet.clark.net>,

Fred Lee <yiu.sh...@mail.cdsi.com> wrote:
>Is it possible for a foreigner lives outside of U S to buy U S mutual funds
>or stocks? Assuming they have U S dollars in U S bank. Most importantly,
>what is the tax implications?

Yes. The tax implications vary depending on what country is involved.
With some countries (Canada, some of the EC), my understanding is that if
you file all the proper paperwork, the tax isn't much different from
investing in your own country, or investing by a US citizen.

However, I wouldn't assume anything without talking to a qualified tax
practioner in both countries, which I am not. The rules for every country
are different.

Michael

[Client...@heroncapital.com]

Unless specifically restricted by the laws of a non-US citizen's
home country, foreigners are free to buy any US assets they want
including stocks, bonds, mutual funds, real estate etc.

A problem you may experience in opening a mutual fund or stock
brokerage account for a non-US citizen is that they may not have
a Social Security or Tax-ID number. These numbers are sometimes
required in order to get full services. For example, all of the
Fidelity Investments web and touch-tone services require a
Tax-ID, otherwise all actions must be placed through a human.
Although a non-US citizen may obtain a "foreign" tax-exempt
tax-id, many won't for fear of tax authority reporting.

Best regards,
David Edwards, President
Heron Capital Management, Inc.
(800) 99-HERON
http://www.HeronCapital.com