Stock Markets Exposed
US Tax for foreign investors?
I am hong kong citizen, studying in the UK and have bank accounts in the US. I want to invest in the US's stock market, but don't know how to set up an account with a stock broker since I am currently studying in the UK, can I do it online? ALso what is the US income tax for foreign student who is studying in a third country like me ?
Public Comments
- 20%
- For US tax purposes you should be considered a non-resident alien, which means that you do not pay income tax in the US. You can easily open an account with a US broker. As long as you fill out a W8-BEN form along with your brokerage account application, capital gains are not taxed in the US. Dividend and interest income, however, will be subject to tax withholding, which you can later claim back in the country you pay income taxes. You'll have to consult a tax professional to get the exact details on how to claim. For more details ask the broker you wanna open an account with as well as check out the IRS (US tax authority) website, there's plenty of info there.
