Levitt Capital Management is a wealth management firm based in Nice, France, specializing in tailored financial solutions for Americans living in Europe. Pulse 2.0 interviewed founder and Chief Investment Officer Robert Levitt to learn more about how he leverages his extensive knowledge of the international landscape to provide personalized service that helps clients achieve their financial goals while ensuring compliance with both U.S. and local regulations.
Robert Levitt’s Background & Career Journey
What inspired you to move from Florida to France to focus on Americans living in Europe? Levitt said:
“I moved to France in 2007 to create a branch of my Boca Raton-based financial advisory and wealth management firm (an SEC Registered Investment Adviser) and serve many of our South American clients who didn’t want to leave their assets in the U.S. but preferred Switzerland. Unfortunately, this venture was short-lived, as the 2008 financial crisis and the blow-up of the Swiss Bank due to hiding U.S. citizens meant that we could no longer operate there. Still, I stayed in France. While in France, I went back to school and earned an undergraduate degree, two master’s degrees, and now I am completing my doctorate—all at French universities.”
“In 2021, I became aware of the challenges facing U.S. citizens due to changing legislation in the U.S. and Europe. Specifically, FATCA (Foreign Account Tax Compliance Act), which forced foreign financial institutions to report to the U.S. on any U.S. citizen who was a client, and MIFID II (Markets in Financial Instruments Directive II). The latter was European legislation, which was designed to protect small consumers, but it resulted in U.S. ETFs, being prohibited to U.S. citizens who lived in Europe. Further, U.S. institutions that were not licensed in Europe began to cut accounts with those U.S. citizens who were.”
“Bottom line, there was a huge information vacuum regarding how a U.S. citizen could manage their financial life in Europe, and very few players could address the issues. Those who were doing so had been firms based in the UK. But then Brexit happened, and those firms could no longer operate in Europe. I decided to fill this need for U.S. citizens. I already had the proper work visas, the mastery of the language, the investment background, and experience working in the French financial sector.”
What are the biggest differences you’ve observed between the financial advisory industries in the U.S. and France? Levitt emphasized:
“The biggest difference is the outlook for investing and the types of products available here. A U.S.-based investor never considers the value of the dollar, but if you live in Europe, you must consider the value of the Euro. This year, for example, the dollar has fallen significantly, so if I had a U.S.-centric portfolio, my losses would be far greater than those of a U.S.-based investor. We also cannot invest in ETFs for a taxable account or mutual funds for any account. But our firm is a hybrid firm. One who works with U.S. citizens who are fiscal residents in Europe. That is very different from the ordinary French investment advisory industry, which sells local products that are not accessible to U.S. citizens. Of course, we are also heavily regulated, must pass substantial hours of continual education, and we must pass our Series 7-equivalent exam, all in French. So, the French advisory industry is very different. Still, we competed and were a finalist for the Top Investment Advisory firm in France last year, and we came in as runner-up this year.”
How did your academic pursuits in French medieval history influence your approach to investment management? Levitt shared:
“As an investment advisor, one must constantly be focused on the future, and the risks. This is not so different from what a historian does. Except instead of studying the future, you study the past. The same basic skills of analysis are required, and the ability to ask good questions.”
Navigating Cross-Border Complexities
What are the most common financial and regulatory challenges Americans face when living in Europe, and how does your firm help them navigate these hurdles? Levitt acknowledged:
“Everything is different in Europe. In the U.S., people are aware of what a 401(k) is, a Roth IRA, or what it means to use a trust to avoid probate. But when you come to Europe, all of the rules change. There is a whole new alphabet soup of retirement plans, such as a PER (Plan d’Épargne Retraite) and a PEA (Plan d’Épargne en Actions), the stock and shares savings plan. And the tax rates differ by country for U.S. citizens. In France, for example, if you own stock in a U.S. company, such as Apple, you pay U.S. capital gains tax as you are used to. In Italy, you pay the Italian rates. In Denmark, you would pay on the unrealized appreciation at a rate of 42%. Some countries recognize Roth IRAs, but most don’t, so they are taxed as any other investment account.”
How do tax laws and regulations complicate investment options for American expats? Levitt emphasized:
“Americans are subject to European rules, such as MIFID II, which restricts investments in U.S. ETFs, and IRS rules, which restrict investments in European funds and ETFs. Each country has a tax treaty with the U.S. to avoid double taxation, but they are all different.”
Walk us through a typical client scenario. What are the first steps you take when helping an American expat set up their finances in Europe? Levitt explained:
Typically, clients come to us with investments in brokerage firms that are not licensed in Europe. So, they can’t stay there. Examples are Schwab, Fidelity, or Vanguard. They may also be sent away from their bank. So, we have to look at what country they are going to – and in this way optimize their tax situation before they move. Currently, there are a lot of Americans coming to Europe.”
Investment Strategy & Technology
What role do technology and AI play in your firm’s operations and client service today? Levitt noted:
“We are extensive users of technology and AI. However, we need products that support multiple currencies and countries; one of our favorite AI products is from Jump AI. But we also use ChatGPT and DeepSeek in our research.”
Are there particular investment vehicles or strategies that you find especially effective for Americans abroad, given the regulatory constraints? Levitt stated:
“Individual stocks work very well for U.S. citizens in Europe. We buy them in the U.S., in Europe and in Asia.”
Broader Trends & Reflections
With the regulatory environment becoming more complex on both sides of the Atlantic, how do you stay ahead and ensure compliance for your clients? Levitt replied:
“We are not concerned with regulation in the U.S. We are Europe-based, so we focus on European requirements. One of the recent big changes was DORA (Digital Operational Resilience Act), the European regulations for cybersecurity. We may also see some loosening of the rules in Europe pertaining to U.S. ETFs next year. It has been proposed. There has also been legislation introduced in the U.S. regarding residential-based taxation, permitting Americans who move overseas to elect to be out of the U.S. tax system. However, this legislation may be problematic for passage, as it is not allowed in reconciliation legislation.”
What trends do you see shaping the future of cross-border wealth management for Americans in Europe? Levitt predicts:
“We expect to begin to see acquisitions by large U.S. investment firms seeking to gain a foothold in Europe, especially since it offers significant organic growth. The U.S. firms will use the acquisition route, not because investment advisors in Europe will add significant assets, but because they will add significant know-how. But there will be competition from European firms and banks who are also seeking to add American clients.”
Looking back, what has been the most rewarding aspect of building Levitt Capital Management in France, and what are you most excited about for the future? Levitt concluded:
“The opportunity to grow a substantial investment advisor organically, meaning $5 billion in assets in a relatively short time, is very challenging in the U.S., a country with a saturated advisory firm market. But in Europe, we have a market of millions of Americans, and it is growing very quickly. Our firm has been one of the first to tackle this market, and we continue to build a moat around our edge. This, for me, is incredibly exciting.”
