Investing in the United States: market, taxation and strategies for a French investor

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Investing in the United States is attracting a growing number of French individual investors, drawn by the size of the US market, the dynamism of its companies and the variety of available investment vehicles. Between the stock market, real estate and private equity, the options for a French investor wishing to gain exposure to the United States have multiplied in recent years. But you still need to know the right strategies, understand the applicable taxation and weigh the risks before getting started. This guide takes stock of the US market, the main routes of access for an individual investor, taxation for a non-resident and diversification options, including through private equity, an option still little known to French investors.

Why invest in the United States?

The United States remains the world's largest economy and the planet's leading financial center. The country accounts for a major share of global stock market capitalization, driven by indices such as the S&P 500, which brings together the 500 largest listed companies in the country, or the Nasdaq, dominated by technology stocks. This market size gives investors access to leading companies in almost every sector, from technology to healthcare, including energy and major consumer companies.

Over the past decade, the US market has often posted stock market performances higher than those of other major financial centers, including France and the United Kingdom. This momentum logically attracts investors in search of returns, even though it comes with volatility and sometimes high valuations, two factors to keep in mind before investing in the United States.

High-potential sectors, from technology to innovation

Silicon Valley, the East Coast and hubs such as New York or Boston concentrate a large share of global innovation, particularly in artificial intelligence, cybersecurity, healthcare and financial technologies. These sectors attract considerable volumes of funding every year and make the United States a prime ground for spotting tomorrow's companies, well before any potential stock market listing.

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What should you invest in in the United States? The main options for an individual investor

A French investor has several avenues for investing in the United States. Each one corresponds to different objectives, a different investment horizon and a different level of risk.

The US stock market: stocks and index ETFs

The most accessible solution remains investing on the stock market, either directly in US stocks or through ETFs that track an index such as the S&P 500 or the Nasdaq 100. This option provides immediate diversification across a large number of companies, with high liquidity and low management fees. It remains, however, exposed to market fluctuations and to movements of the US dollar against the euro.

Real estate in the United States: SCPIs and direct purchase

American real estate, in Florida, New York or other major cities, also attracts French investors seeking rental income or geographic diversification. However, buying directly means handling administrative formalities, local taxation and often the distance from the property, on the other side of the Atlantic. SCPIs invested in the United States offer a simpler alternative, by pooling investments and management across a portfolio of properties.

Private equity in the United States

Less known to the general public, private equity makes it possible to invest directly in unlisted companies, in their growth or transfer phase, with a performance potential that can exceed that of listed markets in exchange for lower liquidity. The United States accounts for a major share of global fundraising in private equity and venture capital, driven by ecosystems such as Silicon Valley, home of Y Combinator, the accelerator that made Silicon Valley. The differences between the main approaches to unlisted investing, venture capital, growth equity or LBO, are detailed in our article private equity vs venture capital.

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How to invest in US private equity with Fundora

Investing in private equity in the United States was until now reserved for institutional investors and family offices, as the funds targeting this market require high access conditions. Fundora was designed to open this asset class to individual investors.

The FPCI and SPV mechanism to lower the entry ticket

Fundora identifies and offers private equity strategies, structured as FPCIs (Fonds Professionnels de Capital Investissement, professional private equity funds) combined with SPVs (Special Purpose Vehicles). This mechanism pools the subscriptions of several individual investors within a single structure, which then invests directly in the target funds. It significantly lowers the entry threshold compared with a direct subscription to an institutional fund, with the minimum amount varying according to the strategy open for subscription.

Discretionary management entrusted to Kyoseil Asset Management

The effective management of the strategies offered by Fundora is carried out by Kyoseil Asset Management, a portfolio management company approved by the AMF, under the management mandate. This regulatory architecture frames the selection of funds, which aims at the global top 25% of private equity managers, with target multiples generally between 2.5 and 4 times the amount invested.

Strategies focused on the US market

Several past Fundora strategies have specifically targeted the US market, across a variety of private equity segments: secondary pre-IPO in the United States with PRE-IPO SECONDARY USA, venture capital in Silicon Valley with Redwood Venture, and US technology and fintech transactions with Allstars 20 Secondary. These strategies illustrate the diversity of options available to an investor wishing to gain exposure to US private markets, beyond listed stocks or real estate alone. The return targeted by these private equity strategies is detailed in our article dedicated to private equity returns.

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US taxation for a French investor

Taxation is a key point of vigilance before investing in the United States, whether in stocks, real estate or private equity.

The France-US tax treaty and double taxation

France and the United States are bound by a tax treaty designed to avoid double taxation of income and wealth. A French investor, who is a tax resident in France and a non-resident in the United States, remains in principle taxed in France on all of their income, while benefiting from a tax credit corresponding to the tax already paid in the United States. The precise terms depend on the type of income and the investment vehicle used, which is why it is advisable to seek tax advice before any investment operation in the United States.

Taxation of capital gains and dividends

For a non-US resident, dividends paid by US companies are subject to withholding tax, reduced thanks to the France-US tax treaty compared with the standard rate, provided the required declaration formalities have been completed, notably Form W-8BEN. Capital gains realized on stocks, ETFs or funds are, for their part, generally taxed in France, under the standard conditions applicable to investment income.

Inheritance and transfer of US assets

US inheritance law treats non-residents differently: US assets held directly, whether real estate or securities, may be subject to specific inheritance taxes in the United States, with rules that are less favorable than for a US resident. A bilateral tax treaty on inheritance frames this risk, but it makes it necessary to plan the structuring of your wealth before investing, particularly for large amounts.

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Risks and factors to watch

As with any foreign market, investing in the United States exposes you to specific risks that should be weighed before taking a position.

Volatility, economic cycles and political context

The US market can go through marked phases of both rise and decline, particularly in technology stocks whose valuations are high. Trade policy decisions, for example the tariff measures taken under the Donald Trump administration, can also weigh on certain sectors and on trade between the United States and the rest of the world, including Europe. These factors reinforce the value of a diversified approach rather than concentration on a single country or a single sector, however solid it may be.

Currency risk between the dollar and the euro

Investing in the United States also means being exposed to the exchange rate between the US dollar and the euro. An unfavorable change in the exchange rate can reduce, or even cancel out, the gain made on the investment, and conversely amplify it if the dollar appreciates. This currency risk must be built into any strategy aimed at the United States, whether it involves stocks, real estate or private equity.

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Diversifying your wealth across France, the United States and the rest of the world

Investing in the United States should not be seen as an exclusive alternative, but as a complementary building block in a broader wealth strategy. Stock market, real estate, private equity: each asset class meets different objectives, and combining them makes it possible to spread risk across geographic areas and types of investment. Our article on how to place your money between safety, return and diversification details the trade-offs to make according to your profile.

For investors who already have a structured estate, notably through a company, investment opportunities in the United States can also be organized through a holding company, an option presented in our article what to invest in with a holding company. In any case, getting support makes it possible to choose the diversification axes best suited to your objectives and investment horizon, before taking a position in a market as vast as that of the United States.

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FAQ: investing in the United States

Can a French person invest in the United States?

Yes, no restriction prevents a French individual from investing in the United States, whether on the stock market, in real estate or in private equity. They must, however, comply with certain declaration formalities, notably tax-related, specific to non-US residents, and declare their foreign income to the French tax authorities.

Can you buy real estate in the United States as a non-resident?

Yes, a non-resident can acquire real estate in the United States, directly or through an SCPI. Buying directly requires getting familiar with specific formalities (opening a local bank account, taxation in the state concerned), whereas the SCPI pools this management for the investor.

What budget do you need to start investing in the United States?

The budget depends on the chosen vehicle. ETFs and US stocks are accessible from modest amounts through a securities account or a PEA-ETF for certain eligible trackers. For private equity, the entry threshold remains higher than on the stock market, but mechanisms such as the FPCI and the SPV used by Fundora make it possible to lower it compared with a direct subscription to an institutional fund.

Is the United States the best country to invest in today?

The United States is among the most dynamic markets in the world, driven by the size of its economy and the weight of its technology companies. It is not, however, a one-size-fits-all answer: a solid wealth strategy relies more on diversification across several geographic areas than on concentration in a single country, however well it performs.

How is a French investor taxed on US gains?

A French investor remains in principle taxed in France on all of their worldwide income, including that generated in the United States, while benefiting from a tax credit for the tax already paid across the Atlantic thanks to the France-US tax treaty. The details depend on the type of income (dividends, capital gains, rental income) and on the vehicle used.

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