Best solution for access to US ETFs for a European

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lmd995

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Oct 17, 2024
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Hi to all members of the most valuable community known to man.



French national and Croatian resident here. I'm planning to follow this guy's strategy for income investing https://youtube.com/@passiveincomeinvesting?si=CViEQPFSRr_F-LCT



Does anybody known him by the way ? Is he any good ?



I'm looking for any tips to bypass the EU ban on most of US funds, I know you can get professional investor status on IBKR but I'm afraid this procedure is incredibly tedious and its outcome quite uncertain.



Paraguay residency seems very nice to me (also an opportunity to take a nice holiday ), but the problem would be then wiring profits from my PY bank account back to croatia, it would kind of burn the whole setup I'm pretty sure.



Anyone could suggest ideas ? I'm looking to keep it as simple as possible (quite a headache I know). I know about Serbia for example but I know many people from there and I think the reliability of banking there is closely related with their shifting political situation, so I dont know if it's worth considering.



Initial amount is 100k with further monthly deposits of 5k (for compound interest. I live like a monk and work in a sector with very high demand in Europe. Transportation is a recession-proof industry hehe).



So would be grateful for any advice from the incredible professionals here regarding what's the simplest and at the same time most reliable setup for my purpose, so that I can focus on the investing itself, at least for the next 2 years lets say, without worrying about changing dumb regulations, and so on (I know that no one knows that. And except WW3, alien invasion, Elon musk choosing me to replace him for managing his businesses cause being too busy with his government job, etc ...)
 
Tried it in the past, a bit of a hassle to be honest to get approved by mercury (I didnt), and there's always the risk that they terminate you without warning, that's the way it was a few years ago at least, don't know about now, I'll have to give it a try again just in case.
 
A Costa Rican company with a local bank account could indeed be a solid option for this type of setup. Costa Rica is known for its relatively stable banking system, and it offers favorable conditions for foreign investors. A corporate structure here might help you bypass certain EU restrictions, while also providing a reliable avenue for moving profits.



As for Paraguay residency, it’s attractive, but like you mentioned, transferring funds internationally could be a challenge due to banking limitations. A Costa Rican company would allow you to operate more seamlessly with banking options that cater to international transactions without triggering many regulatory headaches.



I’d suggest consulting with a local advisor in Costa Rica to ensure you comply with local tax laws while maintaining ease of access to your funds. This setup could be less complex than navigating through multiple jurisdictions with their unique challenges.



Regarding the guy you're following on YouTube, I’d recommend doing a thorough background check. Make sure his strategies align with your long term financial goals, as “passive income” can vary widely in effectiveness depending on market conditions and the assets involved.
 
Houdini said:






A Costa Rican company with a local bank account could indeed be a solid option for this type of setup. Costa Rica is known for its relatively stable banking system, and it offers favorable conditions for foreign investors. A corporate structure here might help you bypass certain EU restrictions, while also providing a reliable avenue for moving profits.



As for Paraguay residency, it’s attractive, but like you mentioned, transferring funds internationally could be a challenge due to banking limitations. A Costa Rican company would allow you to operate more seamlessly with banking options that cater to international transactions without triggering many regulatory headaches.



I’d suggest consulting with a local advisor in Costa Rica to ensure you comply with local tax laws while maintaining ease of access to your funds. This setup could be less complex than navigating through multiple jurisdictions with their unique challenges.



Regarding the guy you're following on YouTube, I’d recommend doing a thorough background check. Make sure his strategies align with your long term financial goals, as “passive income” can vary widely in effectiveness depending on market conditions and the assets involved.

Click to expand...

That's awesome insight here, much appreciated. Many thanks!
 
lmd995 said:






I'm looking for any tips to bypass the EU ban on most of US funds, I know you can get professional investor status on IBKR but I'm afraid this procedure is incredibly tedious and its outcome quite uncertain.

Click to expand...



We discussed EU PRIIP and solution in thread below.














Post in thread 'IBKR alternatives (based outside the US) for non-US / non-EU citizens?'



Mar 6, 2025









Nigital Domad said:






It's not important. I just assumed less hassle overall is the broker is not based in the US? Perhaps that is an incorrect assumption?

Click to expand...



Just know that if your resident in EU/UK and find a broker in EU they have to follow PRIIP rules meaning some US ETF's may not be accessible to you as a retail customer. But in US and outside EU/UK they don't give a damn about that stuff so maybe less hassle. I talked about this below. There are also a few suggestions in that thread in general.










  • Martin Everson












You don't need to do anything else than use a broker outside the UK/EU.
 
Martin Everson said:






We discussed EU PRIIP and solution in thread below.














Post in thread 'IBKR alternatives (based outside the US) for non-US / non-EU citizens?'



Mar 6, 2025









Nigital Domad said:






It's not important. I just assumed less hassle overall is the broker is not based in the US? Perhaps that is an incorrect assumption?

Click to expand...



Just know that if your resident in EU/UK and find a broker in EU they have to follow PRIIP rules meaning some US ETF's may not be accessible to you as a retail customer. But in US and outside EU/UK they don't give a damn about that stuff so maybe less hassle. I talked about this below. There are also a few suggestions in that thread in general.










  • Martin Everson












You don't need to do anything else than use a broker outside the UK/EU.

Click to expand...

Thanks!



I've read it



Missing out on IBKR is just such a pity for me. Do you have any recommendations except establishing Paraguay residency ? Many thanks in advance!
 
lmd995 said:






Thanks!



I've read it



Missing out on IBKR is just such a pity for me. Do you have any recommendations except establishing Paraguay residency ? Many thanks in advance!

Click to expand...



You could try accessing IB indirectly by using an IB white label provider outside EU i.e in Georgia like Caucasus Capital. They use the US IB setup rather than EU IB rulebook I believe. Not sure it will help as they still might apply PRIIP to you based on residency but worth trying.
 
Martin Everson said:






You could try accessing IB indirectly by using an IB white label provider outside EU i.e in Georgia like Caucasus Capital. They use the US IB setup rather than EU IB rulebook I believe. Not sure it will help as they still might apply PRIIP to you based on residency but worth trying.

Click to expand...

Thanks a lot for the recommendation!
 
Would an UK non-res Ltd cut it though?







Martin Everson said:






You could try accessing IB indirectly by using an IB white label provider outside EU i.e in Georgia like Caucasus Capital. They use the US IB setup rather than EU IB rulebook I believe. Not sure it will help as they still might apply PRIIP to you based on residency but worth trying.

Click to expand...
 
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