TL;DR:
- Taxation, liquidity and diversification are essential when choosing an investment suitable for an expatriate.
- International SCPIs offer superior returns and advantageous taxation for foreign investors.
- Structuring one's assets through cross-border vehicles such as...’Luxembourg assurance-vie optimizes taxation and facilitates transfer.
Choosing a financial investment is already complex for a French resident. It becomes a truly precise exercise when you live abroad. Between international tax treaties, residency rules, restrictions on access to certain products, and the need to protect assets often spread across multiple countries, expatriates and wealthy families face constraints that most traditional advisors don't fully understand. This article offers a structured overview of the best investment options, essential selection criteria, and a clear method for making decisions based on your profile and wealth management goals.
Key Points
| Point | Details |
|---|---|
| International diversification | A portfolio diversified across countries and types of investments protects against local risks. |
| Appropriate taxation | Analyzing taxation according to one's country of residence is essential for optimized net return. |
| Preferred SCPI | International SCPIs are often the preferred investment for expatriates in 2026. |
| Private equity with caution | Private equity can offer high returns but requires expertise and vigilance. |
| Tailor-made solutions | Expert guidance helps to select the best investments according to your profile and international objectives. |
The essential criteria for choosing an investment as an expatriate
Having established the context, let's examine the concrete criteria to guide your investment choices. Because not all investments are created equal, depending on your geographical, tax, and family situation. Here are the key areas of analysis to systematically review before making any decision.
Taxation, the first and essential filter
The taxation applicable to your investment income depends on two variables: your country of tax residence and the country where the investment is held. An expatriate residing in Dubai is not subject to income tax in the UAE, but may still be liable for taxes in France if their investments are held there. The tax treaty between the two countries determines who has the right to tax what. Ignoring this mechanism exposes you to double taxation or costly tax adjustments.’tax optimization for expatriates This is therefore the first step before any investment.
Liquidity and accessibility from abroad
An illiquid investment can become a trap for an expat whose situation is changing rapidly. Can you redeem your shares from Hong Kong or São Paulo? Does your bank accept transfers to a foreign account without exorbitant fees? These practical questions determine the true viability of a long-term investment.
Net-net return and capital protection
The gross return shown is meaningless without deducting applicable taxes, management fees, and any exchange rate costs. An expatriate should always think in terms of net return, that is, after all deductions. Diversified SCPIs are projected to yield 6% in 2025, but this figure must be adjusted according to your country of residence and the investment structure chosen.
Here are the criteria to be systematically evaluated:
- Tax residence and applicable treaties between countries
- Accessibility and liquidity of the investment from abroad
- Net return after local and international taxes
- Geographic and sector diversification of the portfolio
- Transmission mechanisms and wealth protection family
- Foreign exchange risk and exposure
- Actual management, entry and exit fees
Pro tip: Before investing from abroad, always request a simulation of the net return in your country of residence. A difference of 2 to 3 percentage points in gross return can disappear entirely after taxes, depending on your circumstances.
Geographic diversification deserves particular attention. An expatriate who concentrates their assets in a single country exposes themselves to concentrated political, regulatory, or monetary risk. The golden rule: no single country should represent more than 40% of your total assets, except in exceptional and duly justified circumstances.
SCPIs and international real estate: the essential investment for expatriates
Having defined the criteria, let's analyze the most commonly used investment: real estate through SCPIs (French real estate investment trusts) and internationally. SCPIs allow investment in commercial or residential real estate without the constraints of direct management. For expatriates, they offer considerable advantages.
Functioning and accessibility
A French real estate investment trust (SCPI) raises funds from individual investors and invests them in a portfolio of properties. You receive rental income proportional to your investment, without directly managing any properties. Subscriptions are possible from abroad, often starting at just a few thousand euros. By 2025, international SCPIs represented 751% of investments, with a total return of 4.91%, making them a major diversification tool for expatriates.
To explore the selection further, consult the Comparison of SCPI returns for expatriates which analyzes the best options according to your tax profile.
Comparison of SCPIs vs. direct real estate
| Criteria | SCPI | Real Estate Live |
|---|---|---|
| Entry ticket | Low (from €5,000) | High (€100,000 and above) |
| Management | Delegate | Personal or through an agency |
| Liquidity | Average | Weak |
| Diversification | High | Limited |
| Expatriate taxation | Optimizable via SCPIs outside France | Complex depending on the country |
| Average net yield | 4 to 6% | 2 to 5% depending on the market |
| Accessibility from abroad | Excellent | Variable |
Direct real estate investment remains relevant for expatriates who wish to maintain strong ties to a specific country, particularly France, to prepare for a future return. However, for most individuals, SCPIs (real estate investment trusts) offer a significantly better return-to-constraint ratio.
Tax advantages depending on the country of residence
THE SCPI outside of France These measures allow for the elimination of social security contributions (17, 2%) for non-residents of France for tax purposes. Rental income from SCPIs (French real estate investment trusts) holding properties in Germany, the Netherlands, or Spain is taxed in those countries at rates often lower than the French marginal tax rate. For an expatriate residing in Asia or the United Arab Emirates, the combination of a European SCPI and a tax treaty can result in virtually no taxation on rental income.
“International SCPIs are now one of the most powerful tools for an expatriate wishing to invest in real estate without being subject to the full force of French taxation.” Alexis Sagnier, Balmont Conseil.
Here are the main advantages of SCPIs for expatriates:
- No social security contributions for non-residents on foreign income
- Access to diversified European real estate markets
- Delegated 100% management, ideal for mobile profiles
- Easier transfer compared to direct real estate
- Option to subscribe via a Luxembourg assurance-vie policy for further optimization
Pro tip: If you are a non-resident for French tax purposes, prioritize SCPIs (real estate investment trusts) with more than 50% of assets located outside France. This will allow you to avoid social security contributions on the portion of your foreign income, potentially improving your net return by 1 to 2 percentage points. Find out how. investing from abroad in a structured way.
Financial investments: assurance-vie, securities accounts and international funds
After real estate, let's turn our attention to traditional and international financial investments. These solutions remain accessible to expatriates, provided they choose the right vehicles and jurisdictions.
Assurance-vie: French or Luxembourgish?
French assurance-vie is often inaccessible to expatriates residing outside the European Economic Area. French insurers generally refuse to issue new policies to residents of Japan, the United States, or Australia. Luxembourg assurance-vie, on the other hand, is accessible from almost every country. It also offers the Luxembourg "triangle of security," which guarantees the protection of assets in the event of the insurer's default. For wealthy families, it is often the preferred solution for intergenerational wealth transfer.
Luxembourg assurance-vie taxation is adapted to the policyholder's country of residence. Unlike French contracts, it does not automatically generate French social security contributions for a non-resident. investment structures for expatriates systematically include this vector in the most successful wealth management strategies.
Securities held in account and listed funds
Ordinary securities accounts remain accessible to expatriates through international brokers such as Interactive Brokers, Saxo Bank, or Swiss private banks. These accounts allow investment in stocks, bonds, ETFs (exchange-traded funds), and actively managed funds worldwide. Capital gains and dividend taxation depends on your country of residence and applicable tax treaties.
Here are the steps to structure a securities portfolio as an expatriate:
- Choose a custodian bank in a stable jurisdiction (Switzerland, Luxembourg, Singapore)
- Define a strategic allocation based on your time horizon and risk tolerance
- Check the tax treaty between your country of residence and each country that issued the securities.
- Implement an annual rebalancing strategy
- Document each decision to facilitate tax returns
International funds and expected performance
International investment funds offer diversified exposure to a variety of asset classes. Global equity funds have delivered annualized returns of 8 to 121 TP3T over ten years, depending on the benchmark indices. International bond funds offer a more conservative alternative, with returns of 3 to 51 TP3T depending on duration and credit quality.
Key statistic: Private Equity has a target return of 8 to 15%, but with significant risk and illiquidity that make it suitable only for experienced investors with a long-term horizon.
For expatriates wishing to delve deeper into these topics, the wealth section Balmont Conseil offers regular analyses of international financial markets, and the section expatriation advice covers the practical aspects of international mobility.
Structured products, private equity and alternative options for high-net-worth individuals
After traditional investments, let's look at the high-end alternatives and solutions for wealthy individuals. These instruments are aimed at investors with significant assets and a good understanding of the financial markets.
Structured products: protection and conditional performance
A structured product is a financial instrument whose return is linked to the performance of an underlying asset (stock index, share, interest rate) according to a predefined formula. It generally offers partial or total capital protection in exchange for a capped share of market gains. For expatriates, these products offer the advantage of predictable potential returns and a predetermined term, thus facilitating wealth planning.
The limitations are real: illiquidity during the product's lifetime (often 3 to 8 years), issuer risk if the structuring bank defaults, and the complexity of the formulas, which requires expert advice. Nevertheless, they are widely used in the portfolios of wealthy families to secure a portion of their capital while maintaining market exposure.
Private Equity: High returns, patience required
Private equity (PE) involves investing in unlisted companies, often through specialized funds. PE funds target annualized returns of 8% to 151%, but with an investment horizon of 7 to 10 years and virtually no liquidity during this period. For wealthy expatriates, it is an essential asset class in a balanced portfolio.
Expatriate structure options allow you to house these investments in vehicles adapted to your tax situation, particularly through Luxembourg holding companies or dedicated funds accessible from your country of residence.
Here are the key points to consider when investing in private equity from abroad:
- Check the fund's eligibility for non-resident investors.
- Analyze the legal and tax structure of the fund (FCPR, FPCI, Luxembourg funds)
- Evaluate the quality of the management team and their track record over a minimum of 10 years
- Plan for a maximum allocation of 10 to 20% of financial assets in PE
- Anticipate the tax impact of distributions in your country of residence
Summary table of risks and returns of alternative investments
| Investment | Target yield | Risk level | Liquidity | Horizon recommended |
|---|---|---|---|---|
| Structured products | 4 to 8% | Moderate | Weak | 3 to 8 years old |
| Private Equity | 8 to 15% | Pupil | Very low | 7 to 10 years old |
| Infrastructure | 5 to 9% | Moderate | Weak | 5 to 15 years old |
| Private debt | 6 to 10% | Moderate to high | Weak | 3 to 7 years old |
| Real assets (forests, land) | 3 to 6% | Low to moderate | Very low | 10 years and older |
“For expatriate families with assets exceeding €2 million, an allocation of 15 to 25% in alternative assets is often justified to improve overall portfolio performance while limiting correlation with listed markets.” Alexis Sagnier, Balmont Conseil.
Comparison of the main investment options for expatriates
To help you make a decision, let's summarize the information in a comparison table. This overview will allow you to quickly identify the solutions best suited to your needs.
Comparative table of investments for expatriates
| Investment type | Average net yield | Expatriate taxation | Risk | Liquidity | Accessibility |
|---|---|---|---|---|---|
| Diversified SCPIs | 6% in 2025 | Optimizable | Moderate | Average | Excellent |
| Luxembourg assurance-vie | 3 to 7% | Adapted to the country | Low to high | Good | Excellent |
| International securities account | 4 to 12% | According to convention | Variable | Very good | Good |
| Private Equity | 8 to 15% | Complex | Pupil | Very low | Selective |
| Structured products | 4 to 8% | Variable | Moderate | Weak | Good |
| Direct Real Estate | 2 to 5% | Complex | Moderate | Weak | Difficult |
Strengths and weaknesses by expatriate profile
For an expatriate in the accumulation phase (35 to 50 years old, high income, long horizon): favour a combination of European SCPIs + Luxembourg assurance-vie + a PE (Personal Equity) portion to boost overall return.
For an expatriate nearing retirement or in the process of transferring assets: reduce exposure to illiquid assets, strengthen assurance-vie for inheritance, and secure part of the capital through structured products with guaranteed capital.
For a wealthy family with multi-country assets: structuring via a Luxembourg holding company or a family-owned civil company allows for centralized management, optimized taxation and facilitated transfer to heirs.
Here are the key tips to refine your choice:
- Define your investment horizon before choosing a liquidity level
- Always calculate the net-net return in your current country of residence
- Anticipate changes in tax residency and their impact on your existing investments
- Consult a banking advisor for a transparent and objective analysis.
- Reassess your allowance every two years or whenever your circumstances change
Our analysis: what most expats don't know about wealth optimization
Following the comparative overview, here is an in-depth analysis based on our field experience. What we observe at Balmont Conseil is that the majority of expatriates arrive with a still very France-centric view of their assets. They continue to think as if they were still living in France, seeking “familiar” investments and ignoring the opportunities offered by their new tax status.
The most costly mistake: believing that French taxation remains dominant
Many expatriates maintain investments in France out of habit or fear of the unknown. As a result, they pay social security contributions on income that could be exempt, or they miss out on favorable tax treaties that would have halved their tax burden. Tax security for expatriates begins with a precise assessment of their actual, not assumed, tax situation.
International diversification is not an option, it is a necessity
The fact that 75% of SCPI investments are now international is no coincidence. It reflects an economic reality: European real estate markets offer higher returns than the French market in several segments. For an expatriate, this geographical diversification is doubly beneficial: it improves returns and reduces exposure to single-country risk.
What cross-border solutions will truly deliver in 2026
Cross-border structures, such as Luxembourg holding companies, Luxembourg assurance-vie policies, and dedicated funds, are not reserved for the ultra-wealthy. They become relevant even with financial assets of €500,000 or more. They allow for centralized management, optimized taxation according to applicable tax treaties, and preparation for inheritance within a robust and internationally recognized legal framework.
The true added value of a firm like Balmont Conseil lies in its ability to assemble these components coherently, without being influenced by banking interests or distribution commissions. An advisor tied to a bank will offer you the products in its range. An advisor will offer you the best products on the market, period.
A counterintuitive look at alternative investments
Many expatriates avoid private equity for fear of illiquidity. This is understandable. But for someone with a diversified portfolio and regular income, the illiquidity of private equity is precisely what protects against emotional decisions during turbulent times. You can't sell your private equity shares in a panic during a stock market crash. This constraint becomes an investment discipline. The best private equity funds have outperformed listed markets over 10 and 20 years. Ignoring this asset class means missing out on a significant performance driver.
Customized solutions: going further with Balmont Consulting
Following our expert perspective, discover how Balmont Conseil provides concrete support to expatriates in structuring and optimizing their international wealth.
Balmont Conseil is an objective wealth management firm specializing in expatriation and international mobility. Our team advises expatriates, executives, and high-net-worth families in France, Switzerland, the United Kingdom, the United Arab Emirates, and Asia. We have no ties to any banking networks, ensuring objective analysis and recommendations aligned solely with your best interests.
OUR wealth management guide for expatriates covers all the topics discussed in this article, with concrete case studies. For complex tax situations, our expertise in tax optimization income tax and in taxation of non-residents in France This will allow you to secure your situation and identify available optimization opportunities. Schedule an appointment for an initial confidential and no-obligation consultation.
Frequently asked questions about investments for expatriates
How to adapt your investment to international taxation when you are an expatriate?
Compare tax treatments based on your country of residence and invest through suitable cross-border solutions. Diversified SCPIs are projected to yield 6% in 2025, but this figure varies significantly depending on the chosen tax structure and your country of residence.
What are the options for protecting family assets when living abroad?
Luxembourg assurance-vie policies, international SCPIs (real estate investment trusts), and certain structured products allow for flexible and tailored wealth transfer to suit your new situation. By 2025, international SCPIs will represent 751,300 investments, confirming their central role in the wealth management strategies of expatriates.
Are Private Equity investments accessible to wealthy expatriates?
Yes, but these are target return investments of 8 to 15% with high risk and significant illiquidity, requiring expert guidance and rigorous fund selection.
What mistakes should be avoided when investing from abroad?
Failing to check the actual accessibility of the investment from your country of residence, ignoring applicable local and international taxation, and neglecting geographical diversification are the three most frequent and costly mistakes.
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