How to invest in international deals?

March 04, 2025

by an investor from Carnegie Mellon University - Tepper School of Business in Philadelphia, PA, USA

I'm a US citizen and am interested in investing in international deals. Does anyone have experience setting up investment partnerships to invest in deals abroad? I have family with French and German citizenships, so maybe that would be helpful. Thanks!

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Reply by a searcher
from Northeastern University in Amsterdam, Netherlands

As a US citizen (not a CPA...don't take as official tax advice!) living and operating a business in Europe (which, from a US fiscal perspective is near-identical to an US resident investing overseas), let me warn you that taxes can be a challenge if set up incorrectly, and tax compliance can be challenging even if set up correctly. There are a ton of variables here which greatly impact the extent of this (country and industry of the business, % stake in the investment vehicle held by US persons, etc), so it is hard to give generic advice, and you'll absolutely want to consult with a CPA with experience dealing with the international tax provisions of the US tax code.

Are you looking to owner-operate in France/Germany, or just be a silent partner? In general, but especially if the former, you need to also beware of tax planning advice generally applicable to those countries, such as deciding whether a personal holding company does or doesn't make sense given anti-tax-sheltering US tax code provisions and whether you plan to elect a pass-through treatment of that entity.

Keywords to Google on this subject: QBAI, Subpart F, FPHCI, GILTI, Forms 5471, 8865, and 1065

I love living and operating in Europe, but the landscape is certainly different from that of the US. I don't have experience structuring investments in Europe, but feel free to DM about owning or running a business here.

Reply by a searcher
from Parsons School of Design in Cuxhaven, Germany

Benjamin, Investing internationally as a U.S. citizen 🇺🇸 is very doable, especially if you have family with French or German citizenship, or dual citizenship yourself. Here’s how to get started: Choose Your Structure: Many of my partner investors use limited partnerships or joint ventures to invest abroad. This allows you to define roles and share profits, and can be tailored for cross-border deals. 🇩🇪🇫🇷🇪🇺 Leverage Citizenship: Having access to EU citizenship (German or French) can make banking, compliance, and deal execution much easier. Some of my strategic consulting clients have used this to unlock local incentives and smooth regulatory hurdles. 📑 Tax and Compliance: Be aware of U.S. and foreign tax rules. International deals may trigger reporting and tax obligations in both countries, so consult a tax advisor familiar with cross-border investments. I might know a guy 😏 🤝 Deal Sourcing: Build relationships with local advisors and networks. I have helped many successful investors in my network, find creative ways to structure deals, sometimes with little or no upfront capital. 🏦 Investment Vehicles: U.S. investors often use vehicles like American Depository Receipts (ADRs), ETFs, or international brokerage accounts to access foreign markets easily. 🧑🏻‍💻 As a German/American citizen, I can help facilitate or collaborate on business acquisitions in both the U.S. and Europe. 💬 If you’d like to discuss specific opportunities or need guidance on structuring your first international deal, let’s connect and explore opportunities! ___ 🗞️ 📰 Subscribe to my monthly newsletter for more insights, case studies and resources: https://bit.ly/F2FNewsletterLI Read my other post at: https://searchfunder.com/article/viewarticle/55348 Private Equity investor For Acquisition Let's connect also at https://www.facebook.com/kennethlbreeze Follow me at https://www.facebook.com/BreezeBusinessConsulting

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