I have been considering opening a Schwab International Brokerage account as I have heard good things about it. Since I am an American  retired and living in Thailand, I can no longer maintain my Brokerage account with Vanguard, Fidelity, T. Rowe Price etc.  Actually, I have a brokerage account with a major American brokerage and, like many Americans, 

use my brother's American mailing address. But this is inconvenient and I sometimes worry about  US address being discovered and then having to close it.

 

I called Schwab International and was quite disappointed at how little the sales person at the other end knew about account requirements. What was more alarming were the tax implications. 30% withholding taxes on dividends. She then asked me if Thailand has a tax treaty with the USA. She said I would be required to send in a W-8 ben tax form. I asked her if those taxes on my dividends can be refunded if, after doing my TurboTax filing returns, I might not be required to pay any taxes. She was perplexed. She said I would need to get a Thai tax number as well. So apparently they send my information to the Thai revenue department. This is scary. I asked her if I could open a joint account with my Thai wife and she said no problem and, in the event of my death, she would be sole owner of the account. No will necessary. I liked this idea because my wife wouldn't have to go to the US Embassy with all kinds of forms and a death certificate to be notarized. 

 

So I am now having second thoughts about Schwab International but I wonder what other options I have. I love the idea of having an account and using my Thai address. They also provide good debits cards with no fees when used in Thailand and I can easily transfer funds  my from the brokerage account to my Thai bank account. But 30% in dividend taxes is considerable. Most of my income form my present brokerage account comes form dividend paying etf"s and closed end funds. 

 

 

 

 

 

You can maintain your other accounts.

 

Keep a USA mailing address with them on file and a USA phone number.

 

Sure it cost money but that’s the price one pays for living overseas.

 

I spend about 9 months every year in Thailand.  I maintain my T-mobile phone number and have a digital mailbox,  Ipostal1

Year round.

 

I also have DTAC as my Thai phone and T-mobile having e-sim.  I can switch back and forth when needed such as for authorization for certain accounts.

 

Get rid of the notion of burning all bridges with the USA .  Makes life easier in Thailand.

10 hours ago, khaepmu said:

I have been considering opening a Schwab International Brokerage account as I have heard good things about it. Since I am an American  retired and living in Thailand, I can no longer maintain my Brokerage account with Vanguard, Fidelity, T. Rowe Price etc.  Actually, I have a brokerage account with a major American brokerage and, like many Americans, 

use my brother's American mailing address. But this is inconvenient and I sometimes worry about  US address being discovered and then having to close it.

 

I called Schwab International and was quite disappointed at how little the sales person at the other end knew about account requirements. What was more alarming were the tax implications. 30% withholding taxes on dividends. She then asked me if Thailand has a tax treaty with the USA. She said I would be required to send in a W-8 ben tax form. I asked her if those taxes on my dividends can be refunded if, after doing my TurboTax filing returns, I might not be required to pay any taxes. She was perplexed. She said I would need to get a Thai tax number as well. So apparently they send my information to the Thai revenue department. This is scary. I asked her if I could open a joint account with my Thai wife and she said no problem and, in the event of my death, she would be sole owner of the account. No will necessary. I liked this idea because my wife wouldn't have to go to the US Embassy with all kinds of forms and a death certificate to be notarized. 

 

So I am now having second thoughts about Schwab International but I wonder what other options I have. I love the idea of having an account and using my Thai address. They also provide good debits cards with no fees when used in Thailand and I can easily transfer funds  my from the brokerage account to my Thai bank account. But 30% in dividend taxes is considerable. Most of my income form my present brokerage account comes form dividend paying etf"s and closed end funds. 

 

 

 

 

 

I have a ROTH with Schwab & have a headache about withdrawals /withholding tax 10% every time I want to withdraw & wire to Thailand.   Yes, a tax free ROTH & I haven't added to the ROTH since retiring 25 years ago.

 

My Thai wife & I recently opened a brokerage acct for the benefits you mentioned.  But I haven't added any funds yet for the reasons you cited about US tax withholding &/or Schwab possibly sending tax info to Thai Revenue Dept.  Admittedly, I assume there would be no problem getting any lawfully due tax refund from US IRS next year, if one wants to wait that long.

I have no difficulty maintaining my Fidelity account. 

 

My wife and son both have Fidelity accounts as well. 

 

They all withhold taxes at the same rate, unless you can claim exempt. 

 

If you are an American citizen there should not be any withholding tax with Schwab on dividends or capital gains, even if you reside outside the USA.

 

If you are not an American citizen and you live in Thailand there is a tax treaty between the US and Thailand that reduces the standard withholding tax from 30 percent to only 15 percent if you claim Thailand as your tax residence.

 

Withholding tax for non US citizens only applies to dividends earned on stocks and ETFs. There are no taxes at all though for non US citizens on capital gains earned from US equities or on interest earned in the US.

 

The W-8BEN tax form is only for non US citizens. It sounds like the person at Schwab who gave you this information assumed you were not an American citizen, which is why they mentioned withholding tax and the tax form.

 

I have a Schwab account but do not use it. I use Interactive Brokers instead since it is much more convenient for people living outside the US who want to invest in US equity markets. You can also live in Thailand and still use a Thai address to open an account with Interactive Brokers. No hassles with them and you don't have to hide behind someone else's address in the US. They accept both US citizens and non-US citizens living in Thailand with a Thai address. 

Thanks for your response to my recent topic about Schwab International. Really useful info.  Since I am an American,  I thought it a bit strange that they would take 30% tax from my dividends. So apparently, after opening a joint account with my Thai wife and submitting a W-8BEN form, Schwab would deduct 15% from half of all the dividends. Not sure how that works. I have heard good things about Interactive Brokers and I am going to look into using them as an alternative to Schwab. The thing is, I generally don't buy individual stocks or trade them. I am, for the most part, long term and hold high dividend paying ETF's and closed end funds. 

I guess it could be llegal, but everyone I know with a Schwab account just uses a U.S. address.  What are they going to do ask a person to go to a Schwab office and show them your passport?

1 hour ago, khaepmu said:

Thanks for your response to my recent topic about Schwab International. Really useful info.  Since I am an American,  I thought it a bit strange that they would take 30% tax from my dividends. So apparently, after opening a joint account with my Thai wife and submitting a W-8BEN form, Schwab would deduct 15% from half of all the dividends. Not sure how that works. I have heard good things about Interactive Brokers and I am going to look into using them as an alternative to Schwab. The thing is, I generally don't buy individual stocks or trade them. I am, for the most part, long term and hold high dividend paying ETF's and closed end funds. 

It’s because if your wife is on the account and she is not a US citizen, then the entire account is treated as if it is owned by a non US citizen and the withholding tax applies to all the earnings. If you leave your wife’s name off the account, then there will be no withholding tax because you are an American citizen.

 

With your wife’s name on the account at Schwab and when using an overseas address, you also will not be able to invest in any of their mutual funds or any of their brokered CDs. That is because you are considered an international client when using an overseas address and the account is treated as a foreign account holder account, so there are certain products you cannot invest in. However, you will still be able to invest in ETFs and stocks. 

 

 

1 hour ago, bkk6060 said:

I guess it could be llegal, but everyone I know with a Schwab account just uses a U.S. address.  What are they going to do ask a person to go to a Schwab office and show them your passport?

What is illegal? You can have a Schwab account with an overseas address. They allow it, but it places you in a different category as an international client. There may be certain products you cannot invest in as an international client, but there is nothing wrong or illegal with that setup.

I guess I can live with the 15% tax deduction on a joint account. I wonder how this works when I file my income tax with the  IRS. One reason I am leaning towards a joint account is because, according to Schwab, in the event of my death, my wife becomes  sole owner.  No will or probate involved. Now I use my brother's address in the USA for my  American brokerage account. But his health is questionable now and his wife told me they might be moving early next year so I won't be able to use them much longer.  I have a 'transfer on death' for my Thai wife my present brokerage in the USA. The brokerage account gave us elaborate instructions to follow in order to have the assets transferred to my wife's bank in Thailand when I pass.  But I am afraid she would find it a bit complicated and daunting filling out and signing numerous forms at the US Embassy in Bangkok along with death certificates and translations. 

You might consider pre-filling out an example CRODA (Consular Report of the Death of an American Citizen Abroad) so your survivor has most of the information in front of them when dealing with the ACS (American Citizen Services - https://th.usembassy.gov/u-s-citizen-services/ ) whom I found to be very courteous and sympathetic.

 

The Thai Consulates here issues an electronic version:

https://th.usembassy.gov/electronic-report-of-death-of-a-u-s-citizen-or-u-s-non-citizen-national-abroad/

 

More information here:

https://fam.state.gov/fam/07fam/07fam0270.html

 

Here is a version to illustrate the layout and information included - pre-filling it out will ease the burden of your survivor(s)

https://common.usembassy.gov/wp-content/uploads/sites/117/2023/10/DS-2060.pdf 

 

Besides my information - passport, birth, U.S. address I I listed as notify/copies to my spouse, my U.S. executor and alternate, my U.S. broker, and checked social Security and VA (I am a veteran).

 

At one point a translation of the Thai death certificate - this requirement has be dropped.

 

There is a Thai translation of what the Embassy can and cannot do as a call-out on the upper right of

https://th.usembassy.gov/u-s-citizen-services/death-of-a-u-s-citizen/

 

 

3 hours ago, khaepmu said:

I guess I can live with the 15% tax deduction on a joint account. I wonder how this works when I file my income tax with the  IRS. One reason I am leaning towards a joint account is because, according to Schwab, in the event of my death, my wife becomes  sole owner.  No will or probate involved. Now I use my brother's address in the USA for my  American brokerage account. But his health is questionable now and his wife told me they might be moving early next year so I won't be able to use them much longer.  I have a 'transfer on death' for my Thai wife my present brokerage in the USA. The brokerage account gave us elaborate instructions to follow in order to have the assets transferred to my wife's bank in Thailand when I pass.  But I am afraid she would find it a bit complicated and daunting filling out and signing numerous forms at the US Embassy in Bangkok along with death certificates and translations. 

If you open an account with Fidelity Investments you can name your wife as the sole beneficiary on the account in the event of death without making her a joint account holder. Avoids the tax withholding and ensures she gets everything. You can invest in ETFs and stocks through Fidelity too. 

You guys have been providing very useful information. Thanks for taking the time. Actually, my wife is the sole beneficiary on my American brokerage account. The brokerage account said that if my wife got a bit confused as to the procedures to follow she could call them and they would provide a Thai translator to help her along. But I can't keep this account much longer as my brother is moving and he and his wife are quite old now so I am probably go with Schwab International.

 

I was unaware of CRODA and the information that The Thai Consulate and the other sites you added. I am sure I will find them all helpful. Really appreciate it.