Tips and Tricks on Investing While Living Abroad!

4 minute read
Investing While Living Abroad

While many expats and international students enjoy living “in the moment,” many often have financial objectives like investing for retirement and purchasing a home. However, individuals often get confused when it comes to investing while living abroad. If you are living abroad and trying to develop an investing portfolio, it can be quite hard to even get started because each country has various rules regarding overseas investments. This blog can assist you in determining what is ideal for your needs if you discover that you are struggling to come up with a plan to grow and safeguard your wealth.


Here are some tips and tricks on investing while living abroad: 

Create a Globally Diversified Portfolio

It is a good idea to think globally while constructing an investment portfolio, and people living abroad especially need to have a globally diversified portfolio. Find a broker or stock selection service that can assist you in creating a portfolio based on different currencies if you are a digital nomad still determining where in the globe you want to cash out. Currency risk can be reduced with the aid of a globally diversified portfolio comprised of several different currencies. So, definitely consider the option of a globally diversified portfolio when investing while living abroad. 

Also Read: Unique Ways to Fund Your Higher Education Abroad

Find an Investment Broker that Specialises in Serving Foreign Clients

When seeking to invest as an expat or international student, you can encounter difficulties depending on your nation of origin. Finding an investment broker who specialises in working with expats from your home country as opposed to just working with expats generally is a good idea for this reason. When looking for an investment broker, make sure to expressly inquire about whether they accept clients from your nation.

Also Read: MBA Scholarships in India & Abroad

Consider Investing in Properties

A citizen of India can invest in real estate abroad through the RBI’s Liberalized Remittance Scheme (LRS). The LRS allows free transfers up to $250,000 per person per fiscal year. The property in question should, however, be in the names of all the people who have contributed to the remittance if more than one person pools their money to buy it. Additionally, you are permitted to send money in the names of minors and children.

You also might wish to invest in a property in your country and rent it out to make passive income if you plan to go back there. You are not required to remain in one location after purchasing a home. Real estate is nearly always a very good long-term investment idea, but you will need to employ a skilled property manager to keep the rental up to date while you are living abroad. So, consider employing a skilled property manager if you are considering investing while living abroad. 

Also Read: How to Manage Money While Studying Abroad?

Do Your Homework About Taxes

You should find out if your home nation has any regulations or tax penalties that apply to investments held in foreign jurisdictions. When it comes to taxes, be sure to do your research because it can help you save a lot of money.

Also Read: Cost of Studying in Canada

Evaluate Your Expat Status’ Permanency

How long you plan to stay an expat is one of the most important questions you should ask yourself before you start investing as an expat. Many people enjoy working abroad for a few years before returning, while others want to make another nation their permanent home. Still others adore a more itinerant way of living. There is no wrong method to take pleasure in living abroad!

To that end, knowing your projected length of stay as an expat might help you formulate an investing plan. Managing currency risk should be your primary concern when investing while living abroad. The risk of losing money on investment because of unfavourable currency exchange rates is known as currency risk. Investing in the currency in which you would eventually want to cash out is one way to manage currency risk in your portfolio. 

Also Read: Cost of Studying in USA


Q1. How to invest if you live abroad?

Ans. Here are some tips and tricks on investing while living abroad:
Create a Globally Diversified Portfolio
Find an Investment Broker that Specialises in Serving Foreign Clients
Consider Investing in Properties
Do Your Homework About Taxes
Evaluate Your Expat Status’ Permanency

Q2. Can a resident Indian invest abroad?

Ans. Yes, a resident Indian is qualified to invest through overseas direct investment (ODI) and overseas portfolio investment (OPI) in the equity capital of foreign companies that are listed and unlisted.

Q3. What happens to my stocks if I move abroad?

Ans. Your demat account must be renamed as an NRO or NRE account if you want to keep retaining your stock portfolio. The earnings from any new investments you make in your country of residency will be transferred to India via your NRE account.

We hope that this blog gives you all the necessary information regarding tips and tricks on investing while living abroad. Many Indian students dream of pursuing education in foreign nations due to the exposure and career growth they offer. Consider joining a free counselling session with Leverage Edu if you plan to study abroad

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