Interactive Brokers: Which legal entity to choose?

Hello Mustachians

I hope you are doing well.

I want to open an account at Interactive Brokers. Which legal entity should I choose? (US, UK, Ireland, Luxembourg)

I started the account opening process at., but I’m not sure anymore if it’s the best choice and I don’t know if it’s the US legal entity. Reason are Tax specific: I don’t want to let my family get into difficulties with US Estate Tax, if I would die.

Which legal entity of Interactive Brokers should/can I choose?
Are there any other tax implications I should be aware of?

My Situation: Newly in CH from a non EU country, taxed at source. I want to start investing in ETFs (eg. MSCI World, VWRL or similar.)

You can’t choose. As a Swiss resident, you go to IB UK.

You are fine for sure as long as you have less than 60k USD invested in US securities including ETFs.

Is an Ireland based ETF. You can buy it at any European broker.

Do some reading please.

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We should really stop this.

Can we start a patreon or go fund me to get an official stamped letter that says that the amount is 11millions and not 60k ?


Below 11 million - no taxes, below 60k - no declaration to US IRS. With “no problem” I mean second (lower) threshold.

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Thank you for your responses with the very valuable links.

So with VT, the cheapest and broadest ETF I would save taxes on dividends (Need to fill the DA-1 Form)

The only drawback is in case of death, that my family would need to figure out to fill the US Tax Forms as seen here: Estate Tax for Nonresidents not Citizens of the United States

But this 60K threshold is only in case of death, right?
You should not do anything except pay the 15% of your dividend to US unless you are not above 11 m
or do I miss the point of the 60k?

Yes, and 11 million also. If wealth of a deceased person includes over 60k USD of US-based assets, a declaration to IRS is required. At least this is my understanding, I am happy to be corrected.

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may be required (probably in only very rare cases)

The big Swiss banks inform you of this IRS regulation if you own significant US situ assets, to be able to say “we told you”, but it’s not their obligation to enforce it. (Of course that could change).
The IRS deceleration is a hefty document to put together.
If every Swiss Erbschaft with some Apple etc (valued at >60k) in the depot would have to fill out such an IRS declaration, then there would be a whole Dienstleistungssektor active. However if one googles the topic, only very few mostly vague links come up (a few specialist lawyers).

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