US expats holding EU ETFs face $500-1500 per PFIC in CPA fees for Form 8621 with no automated software solution
US citizens abroad cannot buy US-domiciled ETFs from European brokers (no PRIIP KID), so they buy EU UCITS ETFs which are classified as PFICs. Form 8621 calculation takes IRS-estimated 30+ hours per form. TurboTax/H&R Block do not support it. Most CPAs charge $500-1500 per PFIC annually. MyExpatTaxes supports it via add-on but no full automation. Community: users spend days on DIY, report getting it wrong, describe CPAs as expensive and often wrong too. Stated WTP from community: $1-2k/year for a correct filing. Gap is automated Form 8621 calculation + QEF election tracking for EU ETF holders specifically.
Score Breakdown
Social Proof 4 sources
Gap Assessment
Greenback/Taxes-for-Expats handle simple returns but PFIC is a manual specialist add-on everywhere. form8621.com offers a niche calculator but no integrated filing flow. No product automates QEF tracking + annual recomputation for EU ETF portfolios. Market: ~9M US citizens abroad, significant subset holding EU ETFs. CPA fee $500-1500/PFIC/year = strong willingness to pay $200-500/year for software.