I moved out of the US a while back and back to Europe. I have a Green Card but I'm considering renouncing to it as plans have changes and I might decide not to move back to the US.
I have a few investment accounts (Vanguard, Robinhood, Coinbase, LendingClub). After renouncing to the Green Card, I shall reach out to these platforms and let them know that my status flipped to Non Resident Alien.
I'm not eligible for the Exit Tax and as far as I understand, if platforms support I should be legally allowed to maintain my US funds. There would be U.S. tax withholding for dividends but not for capital gains.
I wrote to Vanguard and this is their reply:
I assume that by mandatory withholding they are referring to income generated by dividends but any insight here would help.There is a potential for a mandatory withholding on income generated in the account if you claim to be a nonresident alien. You would be able to maintain your funds at no additional cost.
More in general, I would like to know from you the following: what are the implications of turning into NRA with respect to my accounts and the funds I have in those accounts? Are there any tax surprises that I should be aware of?