Advice for NRA(Costa Rica) using omnibus account

For investors outside the US. Personal investments, personal finance, investing news and theory.
Sister forums: Canada, Spain (en español)
---------------
Post Reply
Topic Author
whiterabbit87
Posts: 15
Joined: Thu Jan 07, 2021 9:38 pm

Advice for NRA(Costa Rica) using omnibus account

Post by whiterabbit87 »

Hello bogleheads im an investor from Costa Rica looking for advice.I am currently holding U.S domiciled ETF’s bought through the NYSE.However I recently found out about the tax imposed on NRA on balances over 60k.I talked to a bank at my home country(Costa Rica) and they told me that I could buy the same ETF’s through them which I understand would be purchased through an omnibus account.Since the shares would be purchased through an omnibus account would that really allow me to dodge the 60k limit imposed on NRA for estate tax?
Last edited by whiterabbit87 on Mon Feb 08, 2021 5:47 pm, edited 1 time in total.
Iporante
Posts: 127
Joined: Tue Dec 22, 2020 11:20 am

Re: Advice for NRA(Costa Rica) using omnibus account

Post by Iporante »

I don't have an answer for you, but there is a Costa Rican frequent poster, Galeno, who may be able to provide you an answer and some additional advice. You should send him a private message to make sure he sees your post.
Neuralgia
Posts: 46
Joined: Tue Mar 23, 2021 5:26 pm

Re: Advice for NRA(Costa Rica) using omnibus account

Post by Neuralgia »

whiterabbit87 wrote: Mon Feb 08, 2021 10:35 am Hello bogleheads im an investor from Costa Rica looking for advice.I am currently holding U.S domiciled ETF’s bought through the NYSE.However I recently found out about the tax imposed on NRA on balances over 60k.I talked to a bank at my home country(Costa Rica) and they told me that I could buy the same ETF’s through them which I understand would be purchased through an omnibus account.Since the shares would be purchased through an omnibus account would that really allow me to dodge the 60k limit imposed on NRA for estate tax?
I'm also from CR. Which bank are you talking about?

I'm on the same situation, looking to avoid high fees, trying to handle my retirement fund on my own, but our options seem to be limited.

I'm using eToro right now, and I'm about to finish research and start investing in an Ireland ETF: SWDA
https://markets.ft.com/data/etfs/tearsh ... DA:LSE:GBX

Saludos
User avatar
galeno
Posts: 2653
Joined: Fri Dec 21, 2007 11:06 am

Re: Advice for NRA(Costa Rica) using omnibus account

Post by galeno »

Every bank in CR has access to the financial markets of the world.

Two problems: outrageous fees and taxes. horrible transparency.

If you have less than $100k use Schwab International.

When you have more than $100k switch to IBKR.
KISS & STC.
Neuralgia
Posts: 46
Joined: Tue Mar 23, 2021 5:26 pm

Re: Advice for NRA(Costa Rica) using omnibus account

Post by Neuralgia »

Galeno, why the difference in brokers, depending on your total invested?

How do you add funds to Schwabb and IB?

I thought you could only use wire transfer (no debit/credit card) to add funds, which the last I checked, in BAC you had a $20 fee per wire transfer and a % after $10k which was quite high (can't remember the exact %).

Because of this I eliminated both brokers from my list of possibilities. Right now I'm using eToro, under UK regulations, but I'm always open to new and BETTER options.
User avatar
galeno
Posts: 2653
Joined: Fri Dec 21, 2007 11:06 am

Re: Advice for NRA(Costa Rica) using omnibus account

Post by galeno »

@neuralgia

You have a great point regarding the wire transfer fees at BAC.

We used to send a personal check every 3 months. Now nobody used personal checks or the CR correo anymore.

How do you get your money from CR to eToro?

Regarding the difference between Schwab and IBKR. IBKR charges an annual fee for balances less than $100k. Schwab does not.
KISS & STC.
Neuralgia
Posts: 46
Joined: Tue Mar 23, 2021 5:26 pm

Re: Advice for NRA(Costa Rica) using omnibus account

Post by Neuralgia »

With etoro I just use my debit card. I can even use my credit card, and earn miles :wink:

The problem with etoro is that their platform is more oriented to what these guys call "social trading", where you copy other investors Portfolios.

My Ireland ETF options are limited to SWDA.L, I don't have FI Ireland ETF's.

I actually opened a thread here, asking some questions about my investments. Yesterday. Hope you have the chance to give me your input.

viewtopic.php?f=22&t=344052
Topic Author
whiterabbit87
Posts: 15
Joined: Thu Jan 07, 2021 9:38 pm

Re: Advice for NRA(Costa Rica) using omnibus account

Post by whiterabbit87 »

Neuralgia wrote: Wed Mar 24, 2021 12:19 am
whiterabbit87 wrote: Mon Feb 08, 2021 10:35 am Hello bogleheads im an investor from Costa Rica looking for advice.I am currently holding U.S domiciled ETF’s bought through the NYSE.However I recently found out about the tax imposed on NRA on balances over 60k.I talked to a bank at my home country(Costa Rica) and they told me that I could buy the same ETF’s through them which I understand would be purchased through an omnibus account.Since the shares would be purchased through an omnibus account would that really allow me to dodge the 60k limit imposed on NRA for estate tax?
I'm also from CR. Which bank are you talking about?

I'm on the same situation, looking to avoid high fees, trying to handle my retirement fund on my own, but our options seem to be limited.

I'm using eToro right now, and I'm about to finish research and start investing in an Ireland ETF: SWDA
https://markets.ft.com/data/etfs/tearsh ... DA:LSE:GBX

Saludos
You can use any of the banks here the problem as Galeno rightly points out are the outrageous fees and the 15% capital gains tax.However from what I understand they use omnibus accounts which can be a pretty good alternative to insulating you from any estate taxes when holding us domiciled ETFs.
Topic Author
whiterabbit87
Posts: 15
Joined: Thu Jan 07, 2021 9:38 pm

Re: Advice for NRA(Costa Rica) using omnibus account

Post by whiterabbit87 »

galeno wrote: Wed Mar 24, 2021 7:48 am Every bank in CR has access to the financial markets of the world.

Two problems: outrageous fees and taxes. horrible transparency.

If you have less than $100k use Schwab International.

When you have more than $100k switch to IBKR.
Thanks for replying Galeno.
I was wondering why use schwab international when you have less than $100k?I thought that on balances above $60k it would be best to have Irish domiciled ETF's which from what I understand only IBKR provides.Would you mind expanding more on your judgement?
User avatar
galeno
Posts: 2653
Joined: Fri Dec 21, 2007 11:06 am

Re: Advice for NRA(Costa Rica) using omnibus account

Post by galeno »

IBKR treats accoints under $100k harshly.

Since one needs to start somewhere Schwab International is a good place to start.

When you have that $100 k you switch to IBKR.
KISS & STC.
Post Reply