US Citizen, no US residence. Am I out of luck?

[griffitp12]

Wait sorry, isn't SPY a JP index, even if it's indexing US funds? Therefore doesn't that make it a PFIC, which I need to avoid?

Maybe a broader question is, for 1.) US Citizens in Japan that 2.) are investing small amounts, is the usual route to somehow finagle a Vanguard account (which I have yet to be able to do) or invest in someone else's name to avoid the taxation penalties?

[Kanto]

SPY is a US-domiciled ETFs that trades on the Tokyo Stock Exchange as Japan Depositary Receipts (JDRs):

These JDRs may be attractive for US taxpayers, because they are not PFICs -- they are US-domiciled ETFs. If a US-based investor has a W-9 on file with their brokerage, then no US withholding taxes should be withheld from dividends from these ETFs (instead, dividends will be reported on that taxpayer's Schedule B). For a non-US taxpayer, the above funds will have 10% tax withheld from the dividends to be paid to the US, unless that taxpayer refuses to allow account details (account number and year of opening) to be reported by the JDR sponsor, in which case 30% tax will be withheld. (Japanese withholding tax, if held outside of a NISA, will be the same in all cases.)

https://www.bogleheads.org/wiki/Investi ... _residents

If you did not set it up before you left, it will be extremely difficult. Read through the forums and you can see some successes and failures.

[griffitp12]

SPY is a US-domiciled ETFs that trades on the Tokyo Stock Exchange as Japan Depositary Receipts (JDRs):

These JDRs may be attractive for US taxpayers, because they are not PFICs -- they are US-domiciled ETFs. If a US-based investor has a W-9 on file with their brokerage, then no US withholding taxes should be withheld from dividends from these ETFs (instead, dividends will be reported on that taxpayer's Schedule B). For a non-US taxpayer, the above funds will have 10% tax withheld from the dividends to be paid to the US, unless that taxpayer refuses to allow account details (account number and year of opening) to be reported by the JDR sponsor, in which case 30% tax will be withheld. (Japanese withholding tax, if held outside of a NISA, will be the same in all cases.)

https://www.bogleheads.org/wiki/Investi ... _residents

If you did not set it up before you left, it will be extremely difficult. Read through the forums and you can see some successes and failures.

So if I want to avoid PFIDs and I didn't set up a Vanguard account before I left, what are my options?

[RetireJapan]

I think you may be overly fixating on Vanguard, which is just another broker (albeit one that is owned by the investors of the funds). Other brokers have similar products, both in the US and abroad.

[griffitp12]

I think you may be overly fixating on Vanguard, which is just another broker (albeit one that is owned by the investors of the funds). Other brokers have similar products, both in the US and abroad.

For sure, I buy that. This thread has been really helpful for me to recognize that. But as a US citizen, if I buy products that aren't US registered funds, I get extremely unfavorably taxed, correct?