Seville, ANDALUCIA, May 06, 2026 (GLOBE NEWSWIRE) — EuroAmerican Financial Advisors (EAFA) is drawing attention to a growing issue affecting Americans who invest through European financial institutions: a lack of critical information needed for accurate U.S. tax reporting.
Why Investing in Europe Can Create 1099 Tax Headaches for Americans
In a newly published article, EAFA explains how differences between U.S. and European reporting standards can unintentionally expose American expat investors to higher tax liabilities.
In the United States, investors receive annual 1099 forms from financial institutions that include detailed transaction data, including, crucially, the purchase dates of investments. This is essential for determining whether gains are taxed at long-term or short-term capital gains rates in the United States.
However, European financial institutions do not provide purchase dates on their annual client statements. Americans are subject to U.S. reporting of their worldwide income and assets, and without this information, American investors struggle to demonstrate how long an asset was held, typically leading to gains being taxed at higher short-term rates by default.
“Many Americans are unaware of this gap until they file their taxes,” said Shane Clark, EFP, President and co-founder of EuroAmerican Financial Advisors. “It’s not that European firms are doing anything wrong, they are simply operating under different reporting standards. But the simple omission creates real consequences for U.S. taxpayers.”
EAFA is actively engaging with European financial institutions to advocate for a practical solution: including asset purchase dates on annual statements. This small adjustment could significantly improve transparency and reduce unnecessary tax burdens for American investors abroad.
The full article, “Why Investing in Europe Can Create Tax Headaches for Americans,” provides a clear explanation of the issue and its implications.
EuroAmerican Financial Advisors
About EuroAmerican FInancial Advisors
EuroAmerican Financial Advisors provides award-winning specialist investment advisory and financial planning services for US citizens moving to and living in the EU.
Press Inquiries
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https://eurousafa.com/
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