Expat investments | How to Invest as an Expat

Understanding investment options is a common difficulty while living and working overseas. Research may lead to contrasting information on how and where to invest savings in order to see the best return.

Investing in your expatriate destination can feel daunting too. You may not understand the local market well enough to choose the best options and what if ultimately you want to return to your home country?

There is a lot to consider before jumping into investing as an expat but with some careful planning you can give yourself the best chance of achieving your financial goals.

Investment advice for expats

As an expat, managing finances involves navigating multiple currencies and countries, but can lead to greater savings due to higher income and lower living costs. To grow and protect your wealth, consider a combination of saving and investing. For short-term goals, a savings account with easy access is ideal. Check below some tips on how to invest as an expat:

Think long term

Where you see yourself long term really will impact on your financial investments. According to HSBC, investing should always be seen as a long-term strategy of 5 years or more.The longer you invest for, the longer your pot will have to recover from any market falls. For example, if you are an American expat living in Dubai but ultimately planning a return to the US, you may want to build a portfolio of American investments to support you on your return. You will have to balance this need with currency risk and long term currency fluctuations.

Understand tax implications

While you may be living in a destination where you pay low or no tax on interest and dividends from investments, the profits you make may be taxed if you want to move these funds home. Some expats use legitimate offshore investment to consolidate finances in a more tax efficient way. Otherwise, it is important to understand capital gains tax regulations for your own country. If you are not sure, seek financial advice when you begin investing to avoid an unexpected tax bill in the future.

Diversified investment portfolio

Investing while overseas may open a world of portfolio diversification that is not available to you in your home country. As an expat you may have access to offshore investments that you cannot access while you are living in your country of origin. You may also be able to diversify across nations, sectors, assets and currencies. Novice investors should proceed with caution as diversified investments can become complicated very quickly.

Invest in a pension

Investing in a pension is a tax efficient way to make your money work for you. Take the time to carefully research the best pension for your circumstances. Also check that you can use the pension in your home country or another expat location, depending on where you plan to retire. British expats with investment experience can manage their own pensions using a Self-Invested Personal Pension (SIPP). With this kind of pension, you are responsible for making the decisions into which fund your pension is invested. Not a responsibility to be taken lightly, considering investments may increase or decrease over time.

Stocks

Stocks are a popular option for anyone looking to build an investment portfolio. If you are based in a country with a well-established, relatively stable stock market, investing locally may make sense. However, if you are based in a country where stock market fluctuation is commonplace, look to invest in overseas stock markets, if it is tax efficient for you to do so. Also consider currency risk: if you are living abroad but decided to hold investments in your country of origin, exchange rates can have an impact.

Investment in property

There is a reason ‘safe as houses’ is a well-known phrase in the UK, where property has been seen as a secure investment since Victorian times. Many individuals relocating abroad opt to keep their family home to stay connected to the UK property market, potentially for a future return. Retaining the property can provide an investment opportunity, particularly if you decide to rent it out to generate income or offset expenses. Depending on where you are located, there may be high barriers to entry when it comes to the property market so it will not be for everyone. Despite the adage, the property market is prone to fluctuation, as the world saw with the 2008 financial crisis. However, if you are able to play the long game with property investment, they very often grow again.

Employ a Financial Advisor

Managing wealth as an expat can be complex but with the right professional advice and realistic goals, it can be just as rewarding in the long term. If you are new to investing, employing the services of a financial advisor is recommended. They will be able to help you navigate the best options for your situation. They will also guide you through the highs and lows of investing as an expat.

Understand tax implications

Don’t forget to invest in your physical health and wellbeing while you work overseas with international health insurance. If you have questions on the right expat health insurance plan for you or your family, get in touch, we are happy to help.

Expat Hub

If you’re an expat working or studying abroad, take a look at our expat blogs where you can find all the information you need about expat life – including how to learn a language as an expat, 10 tips for a successful expat interview and more.

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Meet the author

Allianz

At Allianz Partners, Health, our blog is crafted by a team of experts dedicated to providing valuable insights and guidance on global health and insurance topics. With a focus on expatriates, international businesses, and individuals navigating healthcare abroad, our authors bring a wealth of knowledge and experience to every article.

We aim to deliver practical advice, industry updates, and actionable tips to help you make informed decisions, whether you're exploring international health insurance, managing employee health plans, or staying informed about the latest healthcare trends. Trust our blog to be your go-to resource for navigating the world of global health and insurance.

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Expat investments: 7 tips on how to invest as an expat

Table of Contents

Investment advice for expats

Think long term

Understand tax implications

Diversified investment portfolio

Invest in a pension

Stocks

Investment in property

Employ a Financial Advisor

Understand tax implications

Expat Hub

Are you moving abroad?

Meet the author

Allianz

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