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
Published July 2026 · Updated August 2026
Takes ~2 minutes — then continues into your full free diagnostic.
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 DEGIRO | PFIC? | Typical filing |
|---|---|---|
| UCITS ETF (ISIN IE, LU…) | Likely | Form 8621 each year |
| European mutual fund (ISIN NL, DE, FR…) | Likely | Form 8621 each year |
| Individual company shares | No | Report the account |
| Cash balance / money-market sweep fund | The sweep FUND is likely a PFIC | Check the fund's ISIN |
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.
Authorities cited
- IRC §1291 — IRC §1291 — Interest on tax deferral (excess-distribution regime)
- IRC §1297 — IRC §1297 — Definition of a passive foreign investment company
- IRS Form 8621 — About Form 8621 — Information Return by a Shareholder of a PFIC or QEF
- 31 CFR §1010.350 — 31 CFR §1010.350 — FBAR (FinCEN Form 114) filing requirement and $10,000 threshold
- FinCEN Form 114 (FBAR) — Report of Foreign Bank and Financial Accounts (FBAR)
- IRS Form 8938 — About Form 8938 — Statement of Specified Foreign Financial Assets
Primary sources (Cornell Legal Information Institute for the US Code and CFR; IRS.gov for forms, procedures, and treaty documents). This page is general information, not individualized tax or legal advice.
Atamatax provides tax preparation support and educational resources. This website does not constitute legal or tax advice.