Investing in the US as an expat

Because the options available to you in the US – and the costs, outlook and tax rules – might vary a lot from your home country, it’s important to educate yourself on investing in the US before you put any money on the line.

This guide looks at various US investment options from property to stocks, pensions, and alternative assets, covering product availability and tax implications.

This guide is for information only and does not constitute advice. Different types of investment are suitable for different individual needs. Get professional advice and support to choose the right investment plan for your unique situation.

Key takeaways: Investing in the US

• The US has a large economy and many investment opportunities – getting professional advice is key to successfully investing in the US or elsewhere
• The US does not have an investment visa through real estate – but investors in enterprises who are creating local jobs may be able to apply for resident status as EB-5 immigrant investors
• Expats can invest in the US in a pension or buying shares – many different options are available depending on individual needs
• Foreigners can buy US real estate – with no extra rules or restrictions compared to local buyers
• Choose a low cost service to convert and send currencies – providers like Wise have high limits, fees which get lower when you send over 25,000 USD, and the mid-market exchange rate

Investment in the US

The US has the largest economy in the world by total GDP. The total gross domestic product of the US comes in at over 30 trillion USD annually, far outstripping the second closest country – China, with around 19.23 trillion USD.

The US has held this dominant position since the interwar period and while the overall shape of global economics and trading patterns is changing, the US does not look set to lose its crown any time soon.

US government figures show key service sectors to be around finance, insurance and IT, while manufacturing, mining and construction are also large sectors. The US also frequently appears in the top 10 lists rating ease of doing business, making it a popular place both for huge multi-nationals and small businesses looking to grow in a large market.

US polls also show that over 60% of Americans have investments in stocks, whether as standalone holdings or as part of a pension pot. As a result there are many different options if you’re thinking of investing in the US, from accounts with local and national banks, through to higher risk assets like stocks and shares.

How much is needed to invest in the US to get citizenship?

The US offers the EB-5 Immigrant Investor Visa as one route to permanent residency (Green Card status), which can then in some cases be converted to citizenship at a later stage.

The rules for applying for any visa can change dramatically, but at the time of research, to be considered for an EB-5 Immigrant Investor Visa you must:

• Invest at least 1,050,000 USD in a new commercial enterprise that will benefit the U.S. economy (or 800,000 USD in a targeted employment area or infrastructure project)
• Create at least 10 full-time positions for qualifying employees

If you qualify for this visa and can maintain the status for at least five years you might be able to apply for US citizenship, subject to meeting other eligibility rules.

What to know before investing in the US

Seeking professional advice is crucial before making investments, especially for newcomers unfamiliar with local rules and regulations in the US. Most banks and financial institutions have investment advisors available by appointment, including some which offer multi-lingual support services that may be handy for expats.

Bear in mind that you don’t have to use the advisors on hand at your bank. Look for financial advisors familiar with the needs of expats who may be able to give an unbiased assessment of your options.

As an expat investor it’s also important to remember that currency fluctuations can impact returns – get hit by a bad rate when repatriating your savings and you could end up with less than you expect in your home currency.

Wise can help investors move money efficiently between countries with mid-market exchange rates and low fees on international transfers. Wise also offers automatic fee discounts on larger transfers, and has a dedicated support team for large international transfers.

How to start investing in the US as an expat

Before you start investing in the US you’ll need to make sure you have a good understanding of the local market, as well as general principles for investing as effectively as possible. Here are a few universal investment principles to consider:

• Start with low-risk investments for beginners, to give you a chance to learn more about the investment journey
• Diversify investments to avoid concentration risk, looking at different asset types or geographies for example
• Understand time horizon and risk profile – investing is usually a long term concern, so if you’re looking at quicker returns you will need to choose your products carefully
• Never invest more than you can afford to lose and don’t borrow to invest
• Research thoroughly and avoid “too good to be true” offers – including when you compare the fees of different platforms or brokers
• Consider professional advice for complex investments and as you learn

This guide is for information only and does not constitute advice. Different types of investment are suitable for different individual needs. Get professional advice and support to choose the right investment plan for your unique situation.

Savings account investments in the US

You’ll find an excellent range of savings accounts available from national and regional banks in the US. Options include:

• Instant-access accounts
• Online high-yield savings accounts (HYSAs)
• Certificate of deposit accounts (CDs)
• Money Market Accounts (MMAs)
• Special accounts for children
• Savings accounts intended for retirement

Savings accounts made with credit institutions in the US are protected by the FDIC insurance scheme up to 250,000 USD per depositor.

Major banks like Bank of America offer a full range of deposit accounts which can suit pretty much any eligible client. There are also digital first banks and providers in the US which have interest bearing accounts, such as Chime.

Look out for innovative features such as ‘round ups’ which round up the amount when you make a card transaction and put the ‘change’ into a high interest account as savings. These can make it easier to save without making any real change to your spending patterns.

Pension investments in the US

If you’re planning on staying in the US for the rest of your life, you’ll need to make provisions for retirement. In most countries globally you’ll come across the three-pillar pension system: state, occupational, and private pensions. These options are also available for US residents.

State pension

You may be able to claim a state backed pension if you have worked and paid Social Security for at least 10 years. The amount you can get depends on lifetime earnings, and can vary a lot. You can draw your benefits early from 62, with a full retirement age of 67 for most people working today.

Pension amounts vary and are reassessed on a regular basis. You can get a pension forecast based on your own situation online.

Occupational pensions

Occupational pensions are arranged by your employer, and usually require both the employer and employee to make contributions.

Occupational pensions known as 401(k) plans are common for private sector employees, and can involve making pre or after tax contributions. If you make pre-tax contributions you are taxed on withdrawal – or you can choose a Roth plan which offers after-tax contributions and tax-free withdrawals.

Defined benefit schemes which pay out based on tenure and other factors do still exist, but they’re now very rare.

Private pensions

It’s also possible to arrange a private pension in the US called an Individual Retirement Arrangement (IRA). You can open a Traditional IRA or a Roth IRA depending on whether you want to pay in before or after tax.

Your private pension may be used to supplement any annuity you might have from a state scheme or an occupational pension. As pension types vary a lot, you may need to get advice to ensure you select the best private pension option for your situation.

Property investments in the US

You can invest in property in the US freely with no specific restrictions on foreigners.

Generally, the US is an attractive place for property investors as market access is quite straightforward.

Foreign ownership restrictions and eligibility

Foreigners can freely own property in the US with no special conditions or considerations.

Market conditions and pricing

The US real estate market in 2025 is fairly stable with modest growth expected throughout the year of about 3% overall. Demand for housing has been subdued as interest rates are quite high which makes moving less attractive for many people with a mortgage. However, that doesn’t mean it’s a necessarily bad investment if you’re looking at a long term timeline.

Property prices do change a lot, and regional variations can be quite stark. For that reason you’ll need to take some time to learn more about the property market in the area of the US you’re considering investing in, so you can spot good deals when they arise.

Buying property in the US? If you need to move a large payment overseas, Wise could help, with high transfer limits (usually around 1m GBP or equivalent), transfer fees which get lower when you send over 25,000 USD, the mid-market exchange rate and a dedicated customer support team for large transfers.

Mortgage options and costs

If you need to pay for your US property with a mortgage you can apply directly to US banks, or you might prefer to work with a broker to secure the best possible mortgage as an expat in the US.

Variable down payments may be required to secure a mortgage as an expat, with interest rates dependent on the mortgage type, value and duration. Your prospects for being approved for a home loan depend on affordability, and your legal status in the country, as well as other factors such as the property location and value.

Insurance and protection requirements

If you’re taking out a mortgage in the US you may want to look into life insurance cover, to ensure the loan can be serviced even in the case of death. This isn’t usually mandatory, but can offer peace of mind.

If you’re getting a loan and need mortgage protection for the US, here are some life insurance companies in the US you may want to look into:

• Prudential
• Fidelity
• Liberty Mutual

Investment funds in the US

A popular option for many people in the US is to use investment funds which are often overseen by fund managers who take over the job of picking assets and managing the portfolio for clients. If you invest in a fund your money is used to buy assets like shares, and you can profit from the growth of that asset, or from dividends paid while you own it.

The US stock exchange is regulated by The US Securities and Exchange Commission (SEC), to keep customers as safe as possible.

Types of investment funds

Common types of investment finds you may see include:

• Exchange-traded funds (ETF) – low-cost, easy to trade funds indexed to stock exchanges
• Equity/stock funds – investing in stocks and shares for long-term growth
• Bond/debt funds – investing in bonds with periodic dividends
• Mixed funds – combination of shares and bonds
• Hedge funds – private funds with higher returns but more expensive and risky

Before you choose the right funds for your needs, take some time comparing fund performance against fees, and seeking professional advice to ensure you buy into the right options for your investment goals.

Investing in stocks and shares in the US

The two largest US stock exchanges are the New York Stock Exchange (NYSE) and Nasdaq. The NYSE has listings of all types of large companies while the Nasdaq is for tech companies only.

There are many helpful tools online on the exchange websites which allow you to view trends, search for assets and generally get a feel for the market. If you’re looking for a specific index to follow which may help you understand how the market is trading in the US, you may find want to look out for any of the following:

• Dow Jones Industrial Average for blue-chip industrials
• The S&P 500 for a broad look at the market
• The Nasdaq Composite for tech stocks

You can invest in stocks through investment funds managed by individuals, or pick stocks yourself by buying individual assets. This is easily done with online and in-app stock trading platforms.

Bear in mind that there are risks in stock trading which you should not underestimate. Costs can also creep in when trading, which can undermine any profits you make.

When selecting a platform to start trading in the US look carefully at costs including transaction fees, account fees, and taxes.

Ethical and sustainable investing in the US

As with most countries, there’s growing popularity of ethical investing and ESG (Environmental, Social, Governance) focused investment in the US.

If you’re particularly interested in investing in ethical finance opportunities it’s worth talking your views and options through with an investment advisor who can help you target the right assets in the US based on your investment needs.

There are specific advisory services which specialise in ethical investments which may be able to meet your needs.

Other types of investment in the US

Traditional investments in stocks and shares are very popular in the US but there are also other options.

Bonds and government securities

Generally government and corporate bonds are viewed as low-risk investments with moderate return rates. Bonds are often used as part of a diversification strategy to ensure your portfolio has a mix of risk within it.

You can get advice from professionals if you’re interested in adding bonds and securities into your portfolio.

Alternative investments

To diversify even further investors may also look at other markets like gold, precious metals, art, wine, and cryptocurrency. Some of these markets are fairly new, which can mean they’re more volatile and not as well regulated as other markets. If you’re considering alternative investments, be wary of scams and do your research carefully before handing over any money.

Life insurance and specialized products

Federal estate tax may apply on high value estates of around 14 million USD. Some states also have inheritance tax which is paid by the beneficiaries of an inheritance.

This may mean that using life insurance structuring as an asset to pass on wealth to the next generation could be an option. However, this isn’t always needed as many people will be exempt from US estate or inheritance tax due to the amounts involved or their location anyway.

If you choose to look into using life insurance to invest as an asset to pass on to your family, bear in mind that other taxes may still apply, including tax in your home country if you’re an expat in the US. Get advice before you invest.

Tax on investments in the US

Before you invest in the US it’s important to understand the tax implications both in the US and in your home country if relevant.

Capital gains and investment income taxation

The Capital gains tax (CGT) on investments in the US is decided based on how long you’ve held an asset, as well as other factors including the amount of gain made.

CGT is 0% up to 47,025 USD for anyone filing as a single individual, with rates of 15% – 20% for amounts above that. The limits change for people filing as married couples or as a head of household.

Get advice on taxes when you sell any assets so you know how the rules apply in your own case.

Property and wealth taxes

There’s no specific wealth tax in the US at the time of writing, but property taxes usually apply which are set on a local level. Check with your local authorities to know the property taxes which apply in your area.

Conclusion

If you’re an expat in the US or if you’ve moved there to retire or to live long term, you may be thinking of investing to protect your future financial well being.

The US has a large range of investment opportunities from buying property, investing in shares and other popular assets, or starting a local pension. Get professional advice before you invest in the US to make sure your plans match your risk profile and needs. And don’t forget that you’ll also need great low cost ways to convert currencies – like Wise – if you’re sending money to or from the US internationally.

Wise uses the mid-market rate with no markup to worry about, and fee discounts on high value payments over 25,000 USD. This helps with keeping costs low and making the process to transfer overseas simple, convenient and cheap.

FAQs

How to invest in stocks in the US?

Invest in stocks in the US through major banks which have investment products and advisory services, or through popular app based investment platforms. Get advice before you invest to make sure your investment portfolio matches your long term needs.

Where to invest in the US?

The US has a full range of investment options from buying property, investing in shares and other popular assets, or starting a local pension.

What is the best way to invest money in the US?

There’s no single best investment in the US – the right options for you depend on your needs and preferences. As an expat your requirements can be quite different to a long term US resident, so getting specific advice from an investment expert can help you structure your portfolio.

Is there a reason to invest in the US?

You may want to invest in the US if you’re planning on living there or if you want to diversify your portfolio to take in additional geographies. The US is the largest economy in the world so there are plenty of opportunities for investing.

Is it easy to start investing in the US for foreigners?

The US has an accessible investment landscape with few barriers to entry for most people. Get some advice to make sure you’re using your money wisely, and look at all possible investment options before you commit.

Useful resources

(Information last checked on 17th of October 2025)

• USCIS – immigrant investment visa from within the US
• FDIC insurance scheme – information about insurance up to 250,000 USD per depositor
• Bank of America – range of savings and deposit accounts
• Chime – digital first bank with good savings options
• Securities and Exchange Commission (SEC) – US stock exchange regulator
• New York Stock Exchange (NYSE) – major US stock exchange with broad range of large businesses
• Nasdaq – biggest tech index in the US with companies like Apple and Amazon
• Internal Revenue Service – Capital gains tax
• Social Security Administration – Social Security and pensions