Q&A Corner – Why is it so difficult for US Persons to access financial services in France or Europe?

Q: Why is it so difficult for US Persons to access financial services in France or Europe?

A: This is due to strict US regulations. A US Person includes citizens (even dual nationals), green card holders and residents. Even if living in France, a US person is still still subject to US tax law worldwide.

Most French banks and insurers avoid US clients due to FATCA, a US law requiring them to report US account holders. The cost and risk of non-compliance (30% withholding penalties) makes servicing US clients unattractive.

Additionally, if a French financial product, such as a fund or SCPI, becomes accessible to a US person, it could trigger SEC obligations. This can be a costly burden and legally risky. In fact, many firms refuse to take on US clients so they can stay outside of the SEC’s jurisdiction.

Assurance vie is also off-limits. For the IRS, it’s a “foreign trust” with heavy reporting across complex IRS forms (for example, 3520/3520-A). The IRS may treat their growth as passive foreign investment companies (PFICs), triggering punitive taxation.

The bottom line is that many institutions simply refuse US Persons, even if they live full-time in France. 

Solutions exist via FATCA-compliant platforms, Luxembourg-based wrappers or SEC-registered advisers, but they’re niche, more expensive and require expert guidance. 

Overall, direct SCPI access is extremely rare, but structured solutions via Luxembourg can be an option with proper guidance.