Inbound to the U.S.? Financial Moves to Make Before You Arrive

The key to protecting your wealth when relocating to the United States is knowing when, and where, to act. Whether the move is driven by a career change, family reasons, or retirement, becoming a U.S. resident marks a major shift in how your finances are taxed, reported, and regulated.

Once you are part of the U.S. system, you fall under some of the most complex tax rules in the world. These include worldwide income taxation, strict reporting requirements for foreign assets, exposure to estate and gift tax, and punitive treatment of certain non-U.S. structures. Preparing in advance can make all the difference. At Skybound Wealth USA, I help foreign nationals and returning Americans review their finances before entering the system, minimising tax exposure, reducing compliance burdens, and protecting long-term wealth.

Here are some of the most important steps to take before U.S. residency begins.

1. Know When U.S. Tax Residency Starts

Effective planning begins with understanding when you officially become a U.S. tax resident. This usually occurs either on the day you enter with a long-term visa such as a green card or H-1B, or when you meet the Substantial Presence Test, which is based on time spent in the U.S. over three years.

The test uses a weighted calculation: all days present in the current year, one third of days from the prior year, and one sixth from the year before that. For some people, deferring entry until the start of a new calendar year can delay U.S. tax residency by twelve months, giving valuable time to make strategic moves.

2. Trigger Gains Before You’re Taxable

Once you are a U.S. resident, all capital gains become taxable, even if they were built up long before your arrival. Unlike some countries, the U.S. does not reset the cost basis of non-U.S. assets. This means long-held property, business shares, or investment portfolios may be exposed to tax on appreciation that occurred over decades.

Selling or restructuring assets before arrival can lock in gains free of U.S. tax. In some cases, gifting strategies or rebasing assets to new structures may also provide a more favourable starting point.

3. Exit Non-Compliant Investment Structures

One of the biggest surprises for new arrivals is the U.S. treatment of foreign investment funds. Many non-U.S. mutual funds, ETFs, and insurance-based products are classed as Passive Foreign Investment Companies, or PFICs. These come with complex filing requirements and punitive taxation, including the loss of long-term capital gains treatment.

Restructuring your portfolio into U.S.-compliant investments before arrival avoids unnecessary reporting headaches and ensures your wealth grows efficiently within the U.S. system.

4. Review Foreign Trusts, Companies, and Foundations

Foreign structures are another common trap. Foundations are often treated as grantor trusts, foreign companies may be deemed controlled foreign corporations, and offshore holdings can be treated as transparent or abusive if not properly disclosed. Each of these may bring heavy reporting obligations, look-through taxation, or even exposure to GILTI rules.

If you are a shareholder, settlor, or beneficiary of a non-U.S. entity, it is vital to carry out a legal review before arriving in America. In some cases, restructuring or dissolving entities ahead of time is the most effective solution. Coordinating with U.S.-based tax and legal counsel ensures compliance and avoids IRS scrutiny.

5. Prepare for Estate and Gift Tax Rules

The U.S. estate and gift tax system catches many people off guard. Citizens and residents are taxed on their worldwide assets, with exemptions currently set at $13.61 million per person but due to reduce significantly in 2026. Anything above the threshold is taxed at 40 per cent.

Non-citizens face an even tighter regime, with an exemption as low as $60,000 unless residency or other structuring is in place. Gifting strategies before residency can reduce exposure, but once in the system, detailed reporting applies even to gifts between spouses or family members. Without preparation, your estate could be far more exposed than expected.

6. Understand FATCA, FBAR, and Global Reporting

Finally, entering the U.S. system brings extensive disclosure requirements. The FBAR requires you to report foreign financial accounts if their total value exceeds $10,000, including pensions, investments, and joint accounts. FATCA extends reporting further, applying once foreign assets cross $50,000 for U.S. residents, or $200,000 for those living abroad.

Failure to file can result in penalties starting at $10,000 per violation, and can open the door to wider audits. These rules are aggressively enforced, so preparing your reporting position before arrival is essential.

How Skybound Wealth USA Helps

Inbound planning is all about timing and structure. At Skybound Wealth USA, we build pre-arrival financial roadmaps that restructure investments, eliminate PFIC exposure, coordinate with international tax advisers, prepare for estate implications, and set up compliant U.S.-based accounts. The earlier this planning is done, the more options you have to protect your wealth.

Start Your U.S. Chapter on the Right Foot

Relocating to America may be a new beginning, but it doesn’t need to come with financial complications. With the right preparation, you can protect your wealth, reduce future tax burdens, and enjoy peace of mind that your finances are ready for the move.

If you are planning a move to the U.S., contact Skybound Wealth USA to arrange a pre-arrival strategy review and make sure you step into your new life with confidence.

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