(I wish beyond FATCA that taxation on Americans domiciled outside of the country would be ended. Such a waste, and I say this as someone who supports taxation for public goods.)
Which they (almost) never have to do. If they need cash in America, they take out super-low-interest loans.
> the owners of it are taxed once the money moves to individuals
Again, that's technically true but only poor schnooks who keep their money in Vanguard index funds are paying those taxes. The wealthy have more sophisticated tax strategies.
As gutitout said, "the US goes so far that foreign banks would rather not deal with you at all." And the worst burden of that falls on average citizens living abroad, not on the wealthy who just move their money to a different haven.
(Note: I am pro all the reporting requirements. But the parent comment is factually true.)
Yup, can confirm - a large majority of smaller banks will not open a bank account for US citizens in Switzerland. The few larger ones will, but there's extra paperwork you need to fill out.
https://ch.usembassy.gov/u-s-citizen-services/local-resource...
That link also confirms what I said: it clearly says the reporting requirements apply to all "U.S. citizens and residents with...any foreign financial accounts", and it provides a list of some banks that still accept American account holders because many do not.
Eg. GDPR
Similar law exists in the US in California, with the difference being that it's possible for a federal court out there to claim jurisdiction if I, as a non-Californian but American resident citizen, do business with Californian customers.
So, yeah, thanks US for making our EU bureaucracy a bit stuffier!
I wonder how US Citizens would feel about filling a form for the Chinese state with each financial institution. They would say it's an insult! Because it is.