I'm a permanent resident living in the US and would like to invest some money in a company run by my family back in Poland. I'm trying to figure out how to do this and what kind of tax implications it would have.

To make things easier, lets say my brother and I would form a new company registered in Poland, we would both invest the same amount in it and own 50% of it. What is the best way to do all that when it comes to:

  • transferring the initial capital from US to Europe?
  • taking profits out of the company?
  • reporting it on my US tax return?

How would it differ if I were to invest in an already existing company?

  • 2
    Do you file taxes in Poland also, or only the US?
    – Joe
    Commented Sep 7, 2018 at 17:14
  • 1
    Only in the US. Commented Sep 7, 2018 at 17:27
  • When filing US taxes, forms ask if you 1) have or control foreign holdings in banks, stocks, companies, or other assets and 2) whether you've already paid foreign taxes on those accounts/assets. You shouldn't be double-taxed on income/assets where you already paid taxes in Poland, but you should declare the values and taxes already paid on your US returns. Usually if it's < $10K there's nothing more to do, but you still need to report it. As to moving funds back & forth, sorry no idea ...
    – mc01
    Commented Sep 9, 2018 at 7:03


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