Yes, you can buy stocks with an ITIN. No federal law restricts stock ownership to holders of a Social Security Number, and financial industry rules treat an Individual Taxpayer Identification Number as valid identification for opening a brokerage account. The process takes more paperwork than a standard application, funding the account can be its own hurdle, and the tax rules for non-resident aliens differ from those for U.S. citizens in ways that can help or hurt depending on your situation.
Why an ITIN Is Enough to Open a Brokerage Account
Under the Bank Secrecy Act as amended by the USA PATRIOT Act, every broker-dealer must run a Customer Identification Program before opening an account.1Federal Register. Customer Identification Programs for Registered Investment Advisers and Exempt Reporting Advisers For a non-U.S. person, the implementing regulation accepts a taxpayer identification number, a passport number, an alien identification card number, or another government-issued photo ID number.2eCFR. 31 CFR 1023.220 – Customer Identification Programs for Broker-Dealers An ITIN is a taxpayer identification number, so it satisfies this requirement.
FINRA’s own reporting rules also treat SSNs and ITINs interchangeably for customer identification.3FINRA. FINRA Rules – 6840 Customer Information Reporting The regulation permits ITIN use, but each firm still sets its own onboarding policies. Some accept an ITIN through a standard application. Others require paper forms, phone calls, or added documentation.
Documents You’ll Need
Expect any brokerage to ask for more than a typical SSN application requires.
- IRS Notice CP565. This is the letter the IRS mails to confirm your assigned ITIN. It serves as proof the number is real and belongs to you.4Internal Revenue Service. Understanding Your CP565 Notice
- Valid foreign passport. An unexpired passport is the most universally accepted photo ID. Some firms also accept a national ID card, but a passport creates the fewest complications.
- Proof of address. A recent utility bill or bank statement, usually dated within the last 60 to 90 days. The address must match your application.
- Form W-8BEN. This form tells the brokerage you are not a U.S. citizen or resident alien and identifies your country of tax residence. You submit it to the brokerage, not the IRS. Most firms include it in the account application.5Internal Revenue Service. About Form W-8 BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals)
The W-8BEN expires on December 31 of the third calendar year after you sign it. A form signed at any point during 2026, for example, remains valid through December 31, 2029.6Internal Revenue Service. Instructions for Form W-8BEN If you include your ITIN on the form, some brokerages treat it as valid indefinitely unless your circumstances change. Either way, set a reminder to confirm with your firm before the expiration date. A lapsed W-8BEN triggers tax consequences covered below.
Which Brokerages Accept an ITIN
Brokerage policies change, so verify directly before applying. Several large firms have established processes for ITIN holders. Charles Schwab’s international account application asks for a “Tax ID or Social Security Number,” and its international division has historically onboarded non-resident aliens with ITINs. Interactive Brokers accepts a “US Tax ID number if not US citizen” as part of its account application. Fidelity works with non-resident aliens but generally requires a phone call and a paper application rather than the online portal.
App-based brokers are usually more restrictive. Many built their onboarding around instant SSN verification and have no manual review pathway for other identification. If a mobile-first platform’s application asks only for an SSN with no alternative field, that is your answer. Full-service and internationally oriented firms are the more reliable route.
Opening and Funding the Account
Start at the brokerage’s international or non-resident account section. Upload clear scans of your passport and CP565 notice where the platform allows, or mail certified copies if the firm requires paper. Where an SSN application is often approved in minutes, an ITIN application typically goes through manual compliance review. Expect anywhere from a few business days to two weeks.
Funding is where ITIN investors sometimes hit an unexpected wall. Most brokerages require a U.S. bank account for ACH transfers, and not every U.S. bank opens accounts for non-resident aliens. International-friendly fintech services that provide U.S. routing and account numbers can fill this gap. Some brokerages also accept domestic wire transfers, though the fees are higher. Once funds arrive by ACH, settlement typically takes one to three business days before you can trade.
How Dividends Are Taxed
Dividends and certain types of interest paid to non-resident aliens are subject to a flat 30% withholding tax under federal law.7Office of the Law Revision Counsel. 26 USC 1441 – Withholding of Tax on Nonresident Aliens Your brokerage deducts this automatically before paying you. You never see the withheld amount.
Tax treaties between the U.S. and many countries reduce this rate. Treaty rates on dividends commonly drop to 15%, and some agreements bring the rate to zero for certain types of income. To claim a reduced rate, your W-8BEN must correctly identify your country of residence and the applicable treaty article. Getting this wrong means the brokerage withholds the full 30%, and recovering the difference requires filing a U.S. tax return to claim a refund.
If your W-8BEN expires or was never filed, the brokerage may impose backup withholding at 24% and treat you as an undocumented foreign payee, which can mean the full 30% withholding on all income and possible non-compliance reporting to the IRS.8Internal Revenue Service. Publication 15 (2026), (Circular E), Employer’s Tax Guide Keeping your W-8BEN current is the single easiest way to avoid unnecessary tax complications.
Capital Gains and the 183-Day Rule
This is where the tax picture turns favorable for most ITIN investors. If you are a non-resident alien who spends fewer than 183 days in the United States during the tax year, your gains from selling U.S. stocks are generally not taxed. The statute imposes the 30% capital gains tax only on non-resident aliens present in the U.S. for 183 days or more during the taxable year.9Office of the Law Revision Counsel. 26 USC 871 – Tax on Nonresident Alien Individuals Stay below the threshold, and your stock sale profits are outside the reach of U.S. tax.
The 183-day count includes any calendar day you were physically present in the United States, even briefly.10eCFR. 26 CFR 1.871-7 – Taxation of Nonresident Alien Individuals Not Engaged in U.S. Business Days spent in transit through a U.S. airport count. If you are close to the line, track your entries carefully.
One exception matters. Selling stock in a U.S. real property holding corporation triggers FIRPTA withholding regardless of your day count, with the buyer or intermediary withholding 15% of the sale amount.11Internal Revenue Service. FIRPTA Withholding Most publicly traded stocks aren’t classified this way, but REITs and certain real-estate-heavy companies can be. Check before assuming the general capital gains exemption applies to every holding.
Keeping Your ITIN and W-8BEN Active
An ITIN that isn’t used on a federal tax return for three consecutive years expires automatically on December 31 after that third year.12Internal Revenue Service. How to Renew an ITIN An expired ITIN doesn’t immediately freeze your brokerage account, but it creates problems. Your broker needs a valid taxpayer identification number on file. If you can’t provide one, expect higher withholding and possible account restrictions until the situation is resolved.
Renewal requires filing Form W-7 with supporting identity documents, the same process as the original application. Allow at least seven weeks for processing, or nine to eleven weeks if you apply during tax season or from overseas. A lapsed ITIN combined with an expired W-8BEN is the worst case: you lose treaty benefits, face maximum withholding, and may have to sort out both issues before your broker will process trades normally.
If your only U.S. income is dividends that were fully covered by withholding, you may not be required to file Form 1040-NR, but filing can still be worth it if you were over-withheld and want a refund.13Internal Revenue Service. Individual Taxpayer Identification Number (ITIN)
The Estate Tax Trap
Investing through an ITIN carries a hidden cost that catches many people off guard. U.S. citizens and residents currently receive an estate tax exemption above $13 million. Non-resident aliens get a unified credit of just $13,000, which shelters roughly $60,000 in U.S.-situated assets from estate tax.14Office of the Law Revision Counsel. 26 USC 2102 – Credits Against Tax Stock in any corporation organized under U.S. law counts as a U.S.-situated asset, even if you hold the shares through a foreign brokerage or never set foot in the country.15Internal Revenue Service. Some Nonresidents With U.S. Assets Must File Estate Tax Returns
If a non-resident alien’s U.S. stock portfolio exceeds $60,000 at death, the executor must file Form 706-NA within nine months.16IRS.gov. Instructions for Form 706-NA The top federal estate tax rate is 40%, and it applies to everything above the sheltered amount. A $500,000 portfolio could generate an estate tax bill exceeding $170,000. Some tax treaties provide a proportional credit that eases this burden, but many countries have no such treaty with the United States. If you plan to build a significant U.S. stock portfolio using an ITIN, research your country’s estate tax treaty status early. Investing through non-U.S. domiciled ETFs that hold U.S. stocks can avoid this exposure entirely, though those funds carry their own trade-offs in cost and tax efficiency.