Global investment for expats: the best opportunities of 2025

Living abroad offers exciting financial opportunities, but expats face unique challenges – juggling multiple currencies, navigating foreign tax regimes, and managing cross-border remittances. By understanding global asset markets and being mindful of remittances, tax and FX risks, expats can build a diversified portfolio. For example, global equity markets were worth about US$126.7trillion in 2024, while global bond markets stood around $145.1trillion. This vast investment universe offers a mix of assets, from stocks and bonds to real estate and commodities, suitable for European and Western expats seeking growth and security.

Global markets and asset classes

Expats can invest across many asset classes and regions. International stock markets offer access to diverse sectors and geographies. For instance, the US, Europe and Asia all host major exchanges where global companies trade. Diversification is key: our investing guide suggests using “online brokerages (Interactive Brokers, Schwab, etc.)” to invest in global markets and automating contributions into diversified ETFs. This spreads risk and can smooth returns across economic cycles. By contrast, fixed-income (bond) markets provide stability: governments and corporations worldwide issue bonds worth over $145trillion. With rising interest rates in many countries, bond yields have become more attractive than in recent years, benefiting expat savers and retirees.

Commodities like gold or energy stocks can further diversify an expat’s portfolio, acting as an inflation hedge. Some expats also consider alternatives (e.g. private equity or cryptocurrency), but these carry higher risk. Overall, mixing asset types (stocks, bonds, property, etc.) and currencies can help protect wealth. As our expat finance experts advise, expats should be investing in both stable currencies (USD, EUR) and local assets to help safeguard against currency and inflation shocks.

Property as an investment

Real estate remains a popular choice for expats. Owning property abroad can provide rental income and capital growth, as well as personal use. Buying a vacation home or rental flat in Europe, North America or fast-growing Asian markets can diversify a portfolio. Our guide to buying property abroad notes that foreign property offers “unique benefits” – often higher returns and rental yields – but comes with extra hurdles: “Buyers must understand foreign property laws, currency exchange and taxes”. For example, some countries restrict land ownership by foreigners, requiring careful research.

Property markets worldwide have been volatile. The Bank for International Settlements reports that by end-2022 global house prices fell about 2% in real terms (after inflation), the first decline in over a decade. This means prices have paused in many advanced economies; however, prices remain well above pre-2010 levels in most places. Expats should watch local trends: holiday hotspots can still offer attractive rental returns even if prices dip. Importantly, currency risk can make or break a property deal. Even a small FX shift can significantly change the final cost. Our property guide warns that exchange-rate moves “can have a major effect on the overall price – timing is therefore key”.

To manage this, expats often use currency hedging strategies. Forward contracts or currency options can lock in exchange rates when agreeing a property purchase.Multi-currency bank accounts and dollar-cost averaging (buying the foreign currency in installments) are other tools outlined by experts. These measures let buyers plan budgets without fearing sudden FX losses. (Currency hedging is discussed in detail in our hedging guide.)

Stock markets and equities

Stocks are another core holding for expats. Established indices like the S&P 500 (USA), FTSE 100 (UK) and Euro Stoxx 50 offer exposure to blue-chip companies. Over the long term, equities have historically outpaced inflation, although past performance is no guarantee of the future. Expat investors can tap these markets via global brokers or index funds.One strategy is to focus on dividend-paying stocks or ETFs, which create a passive income stream in familiar currencies. (For example, investing in Eurozone or US dividend ETFs provides yields in EUR or USD.)

Emerging market equities can also boost growth potential. Countries like China, India and Brazil have large stock markets that can offer higher returns – albeit with higher volatility.Our experts recommend holding a blend: “investing in global markets from anywhere” and automating contributions “into diversified funds or ETFs” can build wealth steadily. This means having a foot in both developed and emerging markets, shielding an expat’s net worth from a downturn in any single economy.

Fixed income and savings

Bonds and fixed-income assets (like government and corporate bonds) suit more conservative expat goals. With global bond markets valued at roughly $145trillion, there are options everywhere. Developed-market government bonds (e.g. U.S. Treasuries, German Bunds) provide safety, especially attractive in a high-rate environment. Emerging market bonds or local currency debt offer higher yields but carry currency risk. Expat investors might consider bond ETFs or local-currency deposits in stable jurisdictions.

Even cash savings earn interest again in many places. High-yield online accounts and short-term bonds can give a few percent interest in USD/EUR. For example, some European bonds now yield 2-3%, a meaningful income compared to near-zero earlier in the decade.Locking in rates by buying fixed-term instruments in one’s new home country (if allowed) can be a tax-efficient way to grow savings. As always, expats should beware exchange fees on repatriating interest income.

Remittances and money transfers

A major concern for many expats is sending money home or abroad. Global remittances are huge – migrants sent about US$831 billion in 2022. These flows dwarf many aid programmes, reflecting how vital remittances are for families worldwide. Expatriates often need to transfer savings, pay mortgages or support relatives. Unfortunately, transfer costs can eat into those funds. According to World Bank data, the average fee to send remittances can run 6–8% of the amount, depending on the corridor.

To minimise costs, expats should compare services.Specialist currency brokers like CurrencyTransfer can offer much lower spreads than banks or standard remittance apps.Using multi-currency accounts or batch-scheduled transfers can also save on fees. It’s wise to lock in favourable rates when large sums move – again using forwards or fixed swaps – especially if sending money on a monthly schedule.

Currency risk and hedging

Finally, exchange rate swings can significantly affect expat investments. Gains earned in a foreign currency might shrink or vanish when converted home. For example, a British expat earning USD 10,000 annual dividend would see their income fall if GBP strengthens against the dollar. To mitigate this, expats can hedge in several ways. Forward contracts lock in an exchange rate for a future payment, guarding against adverse moves. Currency options provide similar protection with flexibility. Having a multi-currency account enables one to wait for sensible rates rather than converting funds immediately. And, as noted elsewhere, spreading out currency purchases over time (dollar-cost averaging) lessens timing risk.

Since currency markets can react immediately to news about politics or economics, it’s important for expats to stay informed. Some receive news alerts through apps (which some currency providers offer) to monitor key rates like EUR/GBP or USD/EUR. Being proactive about when and how money transfers are made, rather than panicking and reacting, is the best protection from FX volatility. After all, a modest exchange-rate shift has a massive influence on the overall cost of an international asset.

Conclusion

In conclusion, Western expatriates have ample investing opportunities available to them: global equities and bonds in addition to global property. Caution is advised when trying to achieve the best returns: diversify assets across markets, limit remittance and exchange costs, and make careful use of tax agreements. With proper planning and the appropriate tools (e.g., dedicated currency transfer services), expatriates are able to grow their wealth internationally and deal with the inherent challenges of cross-border finance.

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