U.S. EXPAT TAX GUIDE – SAUDI ARABIA
What should I know about US capital gains tax as a Saudi who holds US citizenship?
As a US citizen residing in Saudi Arabia, you are taxed on your worldwide income, including capital gains from investments, regardless of where you live.
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How are capital gains on stocks and shares taxed?
Capital gains from stocks and shares are taxed based on how long you’ve held the investment:
- Short-Term Gains: Profits from shares held for less than a year are taxed at your regular income tax rate.
- Long-Term Gains: Profits from shares held for more than a year are taxed at a lower rate, usually around 20%, plus a possible 3.8% net investment income tax.
How are cryptocurrencies taxed?
Cryptocurrencies are taxed similarly to stocks and shares. It’s essential to keep detailed records of purchase and sale dates to ensure accurate tax reporting.
What about investments in mutual funds?
Investments in non-US mutual funds are often classified as Passive Foreign Investment Companies (PFICs). If you hold PFICs, you must file Form 8621, and these investments are subject to complex and potentially higher tax rates.
Why is professional advice recommended?
Consulting a tax professional with experience in expat tax issues is highly recommended. They can help you optimize your tax strategy and ensure compliance with US tax laws.
Why partner with a specialist Expat accountant?
Living outside of the US can make your tax filing requirements complicated. To ensure you pay the minimum amount of taxes, it’s critical to work with an accountant who understands every aspect and avenue for reducing your tax liability. We have a dedicated team of tax accountants who work exclusively with US expats earning and investing in Germany. Partnering with a specialist expat accountant can help you navigate complex tax regulations and optimize your tax situation.
