Best Investments for Expats in 2025

Real Estate Investments

Real estate is a reliable investment, offering both capital appreciation and rental income, but expats must consider factors like market stability, local regulations, and taxation.

Safe-Haven Real Estate Markets

• Countries with strong legal protections for foreign investors (e.g., parts of Europe, Canada, Australia) provide stability and long-term growth potential.
• Political stability and strong economies make these locations attractive for wealth preservation.

High-Yield Rental Markets

• Southeast Asia, Latin America, and select European cities offer relatively affordable property prices with high rental demand.
• Digital nomads and remote workers continue to drive rental market demand in expat-friendly cities.

REITs (Real Estate Investment Trusts) for Diversification

• For expats who want real estate exposure without managing properties, REITs provide passive income and liquidity.
• They are a great hedge against inflation, as rental income and property values tend to rise with inflation.

Short-Term Rentals and Airbnb Investments

• Properties in tourist-friendly locations can generate strong returns through short-term leasing.
• Expats need to be aware of local regulations and taxes on short-term rentals.

Fixed Income and Safe-Haven Assets

For expats prioritizing stability and lower risk, fixed income and safe-haven assets are essential.

Government Bonds and Fixed-Income Securities

Precious Metals

• Holding a small percentage (5-10%) of a portfolio in precious metals can provide diversification benefits.

Multi-Currency Fixed Deposits

• Depositing funds in multiple strong currencies (USD, EUR, CHF, SGD) protects against currency fluctuations.
• Many international banks offer expat-friendly savings accounts with competitive interest rates.

Offshore Accounts & Tax-Efficient Investments

Expats must manage their wealth across multiple jurisdictions while minimizing tax burdens and maximizing flexibility.

• Multi-Currency Offshore Accounts
  • Holding multiple currencies in offshore accounts protects against exchange rate fluctuations and provides liquidity for relocation.
  • Countries like Singapore, Switzerland, and the UAE offer expat-friendly banking solutions.

• Index Funds and ETFs for Passive Growth
  • Low-cost, diversified index funds provide stable, long-term growth with minimal management.
  • ETFs tracking global markets allow expats to invest in multiple economies while keeping costs low.

• Tax-Efficient Retirement Accounts
  • Many expats use international pension plans or retirement accounts in tax-friendly jurisdictions.
  • Some countries offer expat-specific tax incentives, which should be factored into investment decisions.

• Second Citizenship and Residency Investments
  • Golden visa programs and economic citizenship options in Portugal, Malta, and the Caribbean provide both residency benefits and investment opportunities.
  • Investing in real estate or government bonds can provide a second passport, tax benefits, and greater financial flexibility.

Investment Risks & Strategies for Expats in 2025

Expats investing in 2025 must navigate an increasingly complex economic environment. The global economy is shifting under the weight of inflationary pressures, deglobalization, geopolitical tensions, and evolving monetary policies.

Investment Advice for 2025: Key Economic Risks

Inflation and Interest Rate Uncertainty

Global inflation remains a challenge as the U.S. Federal Reserve and European Central Bank are facing pressure to balance economic stability with inflation control.

Real interest rates remain elevated, impacting the cost of borrowing and the attractiveness of certain asset classes (e.g., bonds and real estate).

Impact on Expats:

• Savings in local currencies lose value over time if inflation is not controlled.
• Higher interest rates affect mortgage affordability for expats investing in property abroad.

Strategy:

• Prioritize inflation-resistant assets: Real estate, commodities (gold, silver), and dividend-paying stocks can preserve purchasing power.
• Avoid long-duration bonds: Rising interest rates erode bond values; instead, opt for short-term, high-yield bonds or inflation-protected securities.

Currency Fluctuations and Foreign Exchange (Forex) Risks

The U.S. dollar remains strong, but policy shifts under Donald Trump’s tariff strategy could weaken its stability.

The Euro has strengthened following political stability in Germany, benefiting investors with European holdings. Meanwhile, emerging market currencies remain volatile due to debt levels and external economic pressures.

Impact on Expats:

• Salary earnings and investment returns can fluctuate drastically when converted between currencies.
• Large forex swings affect property investments, making them more expensive or reducing returns upon resale.

Strategy:

• Hold assets in multiple currencies: Keep deposits in strong currencies like USD, EUR, CHF, SGD, and use multi-currency offshore accounts to reduce exposure to local currency risks.
• Invest in forex-hedged ETFs and funds: These minimize currency risk when investing in global stocks and bonds.

Geopolitical Risks and Trade Wars

The U.S. is imposing new tariffs on pharmaceuticals and semiconductors, which could escalate tensions with trading partners. Transatlantic relations are strained, with the U.S. shifting toward a more isolated stance on global trade.

Russia-Ukraine conflict remains unresolved, and shifts in U.S. policy could impact European economic stability.

Impact on Expats:

• Supply chain disruptions could raise costs of living in certain countries.
• Investments in emerging markets could face higher risk from instability and trade restrictions.

Strategy:

• Invest in defensive industries: Healthcare, utilities, and consumer staples are less affected by global trade conflicts.
• Diversify geographically: Avoid overexposure to a single region; instead, maintain a mix of developed market and emerging market investments.
• Consider alternative assets like commodities and ESG funds: These tend to perform well during periods of political uncertainty.

The Shift Toward Deglobalization and Localized Economies

Trade policies are shifting toward regional economic blocs, reducing reliance on traditional global supply chains.

Some countries are adopting protectionist policies, limiting foreign ownership and investment opportunities.

Impact on Expats:

• Real estate markets may become harder to enter, with foreign ownership restrictions increasing in some regions.
• Emerging market growth may slow down as countries shift to self-reliant economies.

Strategy:

• Invest in self-sufficient economies: Countries that are less reliant on global trade (e.g., India, Brazil) could perform better in a deglobalized world.
• Monitor real estate policies before investing: Expats should choose stable markets with strong legal protections for foreign investors.
• Look for investment opportunities in infrastructure and local manufacturing: Governments are investing in self-sufficiency, creating growth in sectors like renewable energy, automation, and logistics.

Best Investment Strategies for 2025

A well-diversified portfolio is key to managing risk and maximizing returns. Expats should allocate:

• 40-50% to stocks across developed and emerging markets
• 20-30% to bonds and fixed income, focusing on short-term and inflation-protected securities
• 10-15% to real estate, particularly rental properties and REITs in stable markets
• and 5-10% to commodities and alternative investments.

This balance ensures exposure to global economic trends while mitigating volatility.

The best expat investment options perform well during inflation. Hard assets like real estate and energy stocks tend to hold value, while dividend stocks and inflation-linked bonds provide passive income.

Avoiding excessive cash holdings prevents purchasing power erosion over time.

Maintaining liquidity allows flexibility for relocation and unexpected expenses. Expats should keep 6-12 months of living expenses in a multi-currency account and avoid tying up funds in illiquid assets like private equity or property unless long-term residency is planned.

Tax efficiency can also help preserve wealth, as policies vary across countries. Utilizing offshore banking, tax-friendly ETFs, and retirement accounts can optimize tax exposure.

Residency-based taxation strategies in jurisdictions like Portugal or the UAE help reduce capital gains taxes and improve wealth management.

Expats who adopt a balanced, inflation-resistant, globally diversified strategy will be well-positioned to navigate the uncertainties of 2025 while securing long-term financial stability.

For personalised guidance, please consult an expat financial advisor.

Pained by financial indecision?

Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.