What are the best US expat investment options?
That depends. Most expats switch to FATCA-compliant offshore platforms, keep investing in the US, or use global accounts designed for Americans abroad, based on where they live, tax rules, and long-term plans.
If you are looking to invest as an expat or high-net-worth individual, you can email me ([email protected]) or WhatsApp (+44-7393-450-837).
This includes if you are looking for a free expat portfolio review service to optimize your investments and identify growth prospects.
Some facts might change from the time of writing. Nothing written here is financial, legal, tax, or any kind of individual advice, nor is it a solicitation to invest or a recommendation of any specific product or service.
For high-earning or long-term expats, the wrong structure can lead to unnecessary taxes or missed opportunities.
This guide covers the investment routes that remain open to Americans expats and how to make the most of them.
How to Invest as an American Expat
- Stay US tax compliant
- Open an expat-friendly brokerage account
- Set clear financial targets
- Invest in US-listed ETFs and stocks
- Avoid Passive Foreign Investment Company (PFIC)
- Use IRAs or 401(k)s, if eligible
- Hedge currency and country risk
- Consider a cross-border financial advisor
These investing tips for US expats start with knowing the rules at home. That means staying global but never forgetting your US tax roots.
However, investing has become increasingly difficult for US expats due to complex tax rules, FATCA reporting, and many brokers closing accounts for overseas clients.
Traditional investment paths often come with new restrictions and risks once you move abroad.
Here are the most realistic options when investing as a US expat today.
American Expat Investment Options
1. FATCA-Compliant Offshore Investments for American Expats (Best for Most)
These are professionally managed investment accounts or platforms that accept US citizens abroad and report correctly to the IRS.
- Avoids PFIC rules
- Capital gains taxed at favorable rates (0–20%, depending on many short- and long-term factors)
- Easy to file US taxes
- Often managed by cross-border advisors who specialize in expats
- Offers global diversification and multi-currency access
Example investments:
- US-domiciled ETFs
- Individually managed accounts
- Global discretionary portfolios
This is the most efficient and scalable long-term option for most US expatriates.
2. Maintain US Brokerage Accounts (If Available)
Some expats continue using their US accounts, if allowed by the broker.
- Gives access to US-listed stocks, ETFs, and retirement accounts
- Tax-friendly for Americans (no PFIC complications)
- Keeps assets in US dollars, reducing currency risk
- Works best if you recently moved abroad or maintain a US mailing address
However, many brokers restrict or close accounts once they detect a foreign address, so this isn’t a guaranteed long-term solution.
3. Put Assets in a Non-US Spouse’s Name (Use With Caution)
Some expats use their non-American spouse’s name to hold foreign investments, sidestepping FATCA entirely.
- Avoids US tax reporting and PFIC restrictions
- Enables investment in local mutual funds and insurance products
- Can simplify local financial management if you live permanently abroad
Note that this strategy comes with legal risks — especially in countries without strong protections in divorce or inheritance law.
4. Renounce US Citizenship or Green Card (Extreme)
A growing number of high-net-worth expats are exploring this route to escape the US tax net.
- Ends all future US tax filing, FATCA, and global reporting obligations
- Allows unrestricted access to local banks, platforms, and investments
- May involve an exit tax if income or net worth exceeds IRS thresholds
- Comes with a $2,350 renunciation fee
While it may be deemed an option, it’s not an investment strategy. It’s a permanent legal and tax move that requires professional guidance.
Investing as an American expat is uniquely complex. FATCA, PFIC rules, and double taxation risks limit the options available.
For most, the best long-term solution is to look for alternative investments through FATCA-compliant offshore investment platforms that offer US-reportable portfolios.
These strike the right balance between global access, tax efficiency, and peace of mind.
Do American expats pay taxes on investments?
Yes, US expats are taxed on their worldwide investment income, no matter where they live.
The US is one of the few countries that taxes based on citizenship rather than residency. That means if you’re a US citizen or green card holder living abroad, you must report and pay taxes on:
- Capital gains from selling stocks or property
- Dividends from US and foreign companies
- Interest income from savings or bonds
- Rental income from US or overseas property
You may be eligible for credits or exclusions under tax treaties, but you still need to file a US tax return and report foreign accounts if you meet certain thresholds (FBAR, FATCA).
What happens to my investments if I leave the US?
If you move overseas, your US investments don’t vanish. Nevertheless, managing them becomes more complicated.
Some brokers may freeze or close your account once you register a foreign address.
To avoid issues with foreign funds and tax penalties, many expats shift to FATCA-compliant platforms and seek advice.
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.
