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Broker · Europe

DEGIRO & PFICs for US persons

DEGIRO's universe is UCITS by construction — which makes nearly every fund on it a PFIC for a US taxpayer. What to check before you file.

By Danilson Ramos · Founder, Atamatax

Updated July 2026

Tax review partner: onboarding in progress. This article has not yet been independently reviewed by a credentialed professional — every figure cites its IRS source so you can verify it directly.

DEGIRO is one of Europe's largest retail brokers — and for a US person, one of the most reliable ways to accumulate PFICs, because its fund universe is European by construction.

Can a US person use DEGIRO?

DEGIRO's onboarding generally does not accept US persons (its account terms and W-8 process screen for US status — confirm current policy with DEGIRO). In practice the US persons who hold DEGIRO accounts are usually people who opened one before becoming a US person, accidental Americans, or green-card holders who didn't flag their status. The tax rules below apply to all of them.

Why almost everything at DEGIRO is a PFIC

EU PRIIPs rules effectively block European retail brokers from selling US-domiciled ETFs (no KID document), so the ETFs DEGIRO offers are UCITS funds domiciled in Ireland or Luxembourg. For a US taxpayer each one is generally a PFIC: one Form 8621 per fund per year, and the punitive §1291 default regime on gains and large distributions unless you elect otherwise.

Holding at DEGIROPFIC?Typical filing
UCITS ETF (ISIN IE, LU…)LikelyForm 8621 each year
European mutual fund (ISIN NL, DE, FR…)LikelyForm 8621 each year
Individual company sharesNoReport the account
Cash balance / money-market sweep fundThe sweep FUND is likely a PFICCheck the fund's ISIN
The detail people miss: DEGIRO historically parked uninvested cash in a money-market fund rather than a bank balance — a non-US fund that is itself likely a PFIC. Check your statements for a fund ISIN on the cash line.

FBAR and Form 8938

A DEGIRO account is a foreign financial account: it counts toward the $10,000 FBAR aggregate and toward the Form 8938 thresholds. Export your annual statement (positions + cash, with maximum and year-end values) — that's the data both forms need.

  • Export the annual report / positions overview (CSV) — ticker, ISIN, quantity, year-end value.
  • Check each ISIN prefix: US… is not a PFIC; IE/LU/NL/DE/FR… likely is.
  • Note each account's maximum balance during the year for the FBAR.
  • If you hold UCITS funds, model the §1291 cost before selling anything.

Check your DEGIRO holdings before you file

Upload the positions CSV or paste your ISINs — the free checker flags likely PFICs and estimates your Form 8621 workload. Atamatax is tax-preparation software, not a CPA firm, and this is not individualised tax advice.

Broker policies change — confirm current DEGIRO terms with DEGIRO. Atamatax provides preparation software and educational estimates, not individualised tax, legal, or investment advice.

Atamatax provides tax preparation support and educational resources. This website does not constitute legal or tax advice.

Frequently asked questions

Can I open a DEGIRO account as an American?
DEGIRO's onboarding generally screens out US persons — most US-person DEGIRO holders opened the account before acquiring US status. Confirm current policy with DEGIRO. If you already hold an account, the PFIC and FBAR questions on this page apply regardless of how it was opened.
Are my DEGIRO ETFs PFICs?
If they're UCITS funds (ISIN starting IE or LU — the bulk of DEGIRO's ETF universe), then generally yes for a US taxpayer. PFIC status follows the fund's domicile, not the broker. Individual company shares are not PFICs.
Do I report DEGIRO on the FBAR?
Generally yes if your combined non-US accounts exceeded $10,000 at any point in the year — the DEGIRO account counts toward that aggregate whether or not anything in it is a PFIC.

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