Do You Need an ITIN to Invest in the U.S.?

Giuseppa Maceri, CPA, IRS CAA

If you're a non-U.S. person looking to invest in the US, you may have heard about the Individual Taxpayer Identification Number ("ITIN"). So is it necessary for investors?

What Is an ITIN?

An ITIN is a tax identification number issued by the IRS to individuals who need to file U.S. tax returns or have U.S. tax reporting obligations but are not eligible for a Social Security Number ("SSN"). This typically applies to nonresident aliens, foreign nationals, and certain visa holders.

When You Need an ITIN for U.S. Investments

1. To Open a U.S. Brokerage or Investment Account

Most major U.S. investment platforms require some form of taxpayer identification to comply with federal regulations. If you don’t have an SSN, an ITIN is usually required to:

• Verify your identity

• Report your income to the IRS

• Enable tax withholding and statements (like Forms 1099)

2. To File U.S. Tax Returns

If your investments generate U.S. source income — like dividends, interest, or capital gains — you may need to file a Form 1040-NR (U.S. Nonresident Tax Return). An ITIN is required for this filing.

3. To Claim Tax Treaty Benefits

The U.S. has income tax treaties with several countries that may reduce or eliminate withholding tax on investment income. To take advantage of these reduced rates, you must:

• File Form W-8BEN

• Include a valid ITIN to certify your foreign status and treaty eligibility

4. To Report Real Estate Investment Income

Foreign nationals investing in U.S. real estate will often need to file U.S. tax returns.

Need help applying for an ITIN or setting up your investment tax strategy?

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