U.S. Tax Planning Essentials for High-Net-Worth Foreign Nationals

In this episode of GT's Immigration Insights podcast, host Kate Kalmykov is joined by Greenberg Traurig colleague Gennette Faust for an in-depth discussion on the U.S. tax implications that high-net-worth foreign nationals must carefully consider before obtaining a green card or establishing U.S. tax residency. The discussion covers the critical importance of pre-immigration tax planning, including why asset structures that work well for non-U.S. persons often become highly inefficient – and potentially costly – once an individual becomes a U.S. taxpayer. Gennette explains key concepts such as the substantial presence test, the step-up in tax basis, passive foreign investment companies (PFICs), anti-deferral regimes, foreign tax credits, and the potential for double taxation. She also addresses why timing matters and why engaging a tax advisor at least one year before establishing U.S. residency is strongly recommended. Kate and Genette further explore the interplay between tax and immigration strategy, including the risks created when tax advice conflicts with immigration compliance obligations, the estate and gift tax implications of U.S. residency, and the U.S. expatriation tax regime as it applies to both citizens and long-term green card holders. The episode concludes with a practical discussion on how carefully coordinating immigration and tax counsel – and thoughtfully timing the acquisition of U.S. residency – can result in significant long-term financial benefits for globally mobile individuals and families.