Rentvesting Abroad: Why Buying ETFs Beats Buying Property for Expats and Digital Nomads

Buying a home in paradise is often pursued as the ultimate escape. But what if there was a way to live in a home in paradise indefinitely, get rich, and keep the freedom of a traveler?

Spoiler alert: There is.

If you’re enjoying life abroad and, like a responsible adult, considering home ownership, you’re on the right track – but there is a better financial option for adventurous souls who love remote corners of the world.

Rentvesting.

“Rentvesting” is the process of – instead of buying a home or real estate – investing in stocks and ETFs that not only pay your monthly rent, but also grow your wealth in a way that outperforms real estate investment and maintains the carefree freedom that nomads and expats love.

 

During my most recent transition from wanderlust driven digital nomad to savvy sovereign expat I’ve adapted my accommodation plan from AirBnB’s and simply purchasing real estate, to actively using georarbitrage and investment in ETFs to limit my risk, keep my assets liquid, and still create my dream home in a place I’ve been trying to get back to for 15 years.

In this article, I’ll share the advanced geoarbitrage tactic of “rentvesting” to fund your life abroad and increase your net worth by thousands of dollars while delivering more freedom to wander, and how it upended plans in my new home in the best way possible.

Contents:

• Bali seduced me into buying a villa, and proved why it was a bad idea
• Should you buy a home abroad?
• The Rentvestment Strategy: Investing in broad market ETFs is more profitable than buying real estate.
• The Profits of ETFs vs Real Estate Investing: By the numbers, which is better?
• Case Study: A high-rise condo in Buenos Aires or a stack of ETFs?
• Does Rentvesting make sense beyond Buenos Aires?
• The Qualitative Passive Income Investing instead of Real Estate Investment Abroad
• Recognizing the risks of Rentvesting
• A $3.5 million San Francisco house? Or $10 million in stocks?
• For those outside of ‘Murica: How to invest in US markets as a foreigner
• Bottom Line Insights for all Expats and Nomads
• Get the Downloadable Excel Spreadsheet Free and Run Your Own Numbers

At the moment, I’m enjoying a cup of wonderful hot cocoa as I sit on a terrace staring at a green hillside topped by a monastery. I don’t have an employer. I don’t have a permanent home. And by most people’s life standards, I don’t have much of a plan. The feeling of freedom is reminiscent of 8 years ago when I bought that first one-way flight around the world.

However, this time I do know that I will spend the morning in view of the monastery, peacefully writing something that will potentially alter someone’s life. This afternoon, I will get an amazing massage followed by a sauna session. This evening, I’ll go for sushi – horse mackerel and sake – flown in from Japan. I know that this month, I’ll fly halfway around the world again to sit on a terrace overlooking cobblestone streets to enjoy a bottle of wine that my host will have waiting as I enjoy my first winter in years.

Such is the life of “a sovereign expat,” with these clearly important details figured out, but thanks to a self-sustained and highly flexible lifestyle, the remainder of life happily in question.

Despite this seemingly 100% go with the flow vibe and lifestyle of the moment, as I sit staring at the temple in the distance, I am pondering a relatively serious question: Should I buy a condominium in my new neighborhood that I intend to make home permanently?

Or, is there a better way to optimize a long-term life in my new destination?

With the priorities of quality of life, mobility, preservation of wealth long-term (and possibly even profit), and still a slight tinge of wanderlust, does it make sense for a “sovereign expat” to buy real estate – a home or a condo – in the city or country that they plan to make their base?

The quick and lazy answer is “it depends” on the priorities of the nomad or expat, the economic conditions (real estate prices and market numbers), and a few other nuanced factors. As such, whether or not buying real estate in a potential country as an immigrant (yes, expats and nomads are immigrants) depends on the person, the country, and their reasons for making the purchase.

Additionally, whether buying real estate in a foreign country makes sense or not for a full-time nomad or expat depends heavily on how they leverage geoarbitrage – where they earn their money, and where they spend it.

However, in my situation, after analyzing the numbers (costs, potential profit) and the soft factors (how much I love the new location, how much I value my mobility and sovereignty), the answer is heartbreakingly “no”. I should not buy a home in my favorite city, Buenos Aires.

As a sovereign expat, it does not make sense to buy a home in my new city – not because it isn’t good enough, but simply because there are countless other ways to put capital to use in designing a perfect life, while preserving mobility, and growing even more opportunities along the way.

In short, I found a way to live in the same high-rise condo, net a substantial profit, and stand ready to purchase that agrotourism nomad village in Andean wine country I’ve been planning, with cash.

---

For those who travel and live abroad long term (I’ve been abroad 8 years continuously now), where we live and spend our time between adventures is as important as the travels themselves that make the lifestyle worth it. The routines it allows us to develop. The neighbors who bring us in over time. The nature and architecture that the city surrounds us with. The food and drink it nourishes us and welcomes us with. These seductive elements of home in the exotic, beautiful, and comfortable places of the world – from Hanoi to Porto to Medellin always pull us in and deeply affect how well we live.

If you’re lucky enough in your wandering, at some point you’ll return to a location so many times, eventually lengthening each stay, that the idea finally dawns on you – you could live there forever.

Yes, you could.

But then a more complexity inducing idea follows…

“Could I buy a house here?”

Yes, technically, in most places, you could. But should you?

For the full-time nomad or expat, here is where the true dilemma arrives.

Should you buy a home abroad?

Background: Bali seduced me into buying a villa, and gave me a “Hard Knocks” education in real estate abroad, and ways to do better…

Recently, I left my previous “home” of Bali, where I’d lived on and off since 2019, partly due to the pandemic and partly due to my hubris in thinking I could build a “quick and easy” villa in a place marked with chaos. To think I planned on a smooth process in a place where they routinely shrug off volcano eruptions, tsunamis, and car accidents gives you a clear perspective that I was absolutely not ready.

Although I left the US in 2017 to “travel the world,” much of my time between 2022 and 2024 was spent stuck on Bali, navigating construction, repair/renovation, tax issues, legal issues, and “investment issues.” You can read all about that experience of building a villa on Bali here, and an update on whether I would build in Bali again here, as I’ve beaten those horses to death in previous writing.

Relevant to the question at hand – should I buy a condo in my new long-term home of Buenos Aires – are two excellent lessons that I learned through owning real estate in Bali.

1. I value my mobility and freedom as a “sovereign expat” more than most things in the world.
2. I value quality of life – and the foods, activities, and routines that add up to a high quality of life – more than most things in the world.

Suppose you are reading this as a nomad, an expat, or an aspiring nomad/expat. In that case, you likely value both of those principles in the same way, so please take heed, as they are immensely affected when you decide to buy real estate in a location.

If your situation, as I planned for mine to be in Bali, is very simple, with an easy, red tape free rental process, easily accessible service providers for maintenance, and fair, transparent pricing for home services exists (such as rental management, legal advice, and accounting), then ownership will be a more straightforward process than with most places in the world. However, for most places in the world, the times that you leave will not lead to such a straightforward rental management setup. Ultimately, if you want good investment returns (profits) from a piece of real estate you own, you will need to manage it yourself – if that is a legal possibility (it was not in Bali). If you have to hire out for everything, rental returns will be far lower than what pride-filled owners and locals claim.

On average, investment returns for renting out real estate around the globe range from 3% to 8% after expenses, according to Global Property Guide, usually because the expenses of owning a property as a passive investment eat up your profit.

By the way, Mongolia offers 11%+ returns on residential real estate if you’re feeling bold!

By contrast, the US stock market has averaged a 10.33% return since 1957. That is purely and truly passive income that is also liquid.

Awareness of these two possibilities – investing in real estate in a market with cheap bargains that will appreciate in value and are in very livable areas, or “rentvesting” by investing in potentially higher profit investments to pay for rent and reinvest profits – raises a solid opportunity to optimize my home and investment strategy.

But would the potential appreciation in value of the real estate in Buenos Aires exceed the stock profits?

Would the regulatory restrictions and transaction costs make the Argentine real estate ownership experience as chaotic as it was on Bali?

Are there hidden benefits to keeping investments liquid (in equities instead of real estate) from the perspective of a nomad, expat, and potential Argentine resident?

Let’s dig in…

Disclaimer: This article does not contain financial or investment advice. The information that follows is a recounting of my personal geoarbitrage strategy for real estate for your education and consideration. I recommend educating yourself or consulting a qualified (certified) financial advisor before deciding whether or not to apply this tactic.

The question many expats face: Should you buy a home abroad?

1. It depends on the numbers

2. If you have access to US markets or ETFs, in most “geo-arbitrage friendly” countries, it makes more sense to invest your cash in equities than buying real estate, and use income/gains to pay your rent

3. In places where you can only purchase leasehold, “rentvesting” pairing equity investments with rentals often makes more sense – but check the numbers with a financial advisor

The Rentvestment Strategy: Investing in broad market ETFs is more profitable and practical than buying a condo.

For my situation, assessing investing $250,000 in a condo in Buenos Aires to live in, investing $250,000 in a US broad market ETF (such as VTI or VTSAX), paying rent routinely with the gains, from a profit (quantitative) standpoint and a lifestyle (qualitative) standpoint, investing in ETFs is a better strategy.

According to the numbers, investing in my choice ETF (VTI or VTSAX) and paying rent for a similar apartment with the gains, instead of buying real estate in Buenos Aires, has a higher net profit from a pure numbers standpoint. Additionally, holding liquid and comparatively tax-advantaged ETFs fosters more mobility and offers other benefits important to expats and nomads.

The Numbers of ETFs vs real estate investing: Owning Real Estate vs. Investing the Same Capital in ETFs

Note: These are “back of the napkin” calculations that are directionally accurate and based on assumptions for my scenario, my investing style, and the real estate market in Buenos Aires as of 2025

Comparing two scenarios: ETF investment to pay rent or buying a home to live in

1. If I invested $250,000 in a broad market US ETF and withdrew $1,100 per month to pay rent, I would likely have $414,161 remaining in stocks at the end of 10 years.
2. If I purchased a condo for $250,000 in Buenos Aires, and paid HOA, building fees, and taxes as an owner, I would net $377,821 at the end of 10 years, including home value and subtracting ownership expenses.

Interestingly, this comparison doesn’t even account for the ~6.8% to ~9.3% transaction fees (~$18,000) of real estate transaction fees for buyers in Argentina on a purchase like this, further reducing the case for buying real estate in Argentina.

Assumptions for this comparison

Assumptions for investing in ETFs: 9.5% annual return

Assumptions for buying a condo in Buenos Aires: 1.5% annual property taxes, 7% real estate appreciation, and $200 monthly building expenses

But considering I do wish to maintain a slightly nomadic lifestyle and rent out my home during trips to Europe, Africa, and Asia, it is worth examining…would the investment in a rental home in Buenos Aires break even against a similar investment in a broad US market ETF?

I stumbled on this discovery a little too late after analyzing the investment viability for my home in Bali as a potential rental property. Most real estate investments worldwide, as managed rentals generating passive income, will not outperform the US market on net returns, and this is often before considering transaction costs and taxes.

No, a rental property in Buenos Aires would not outperform a conservative equities investment in the US market.

1. Over 10 years, a $250,000 ETF investment in a broad US market fund will likely appreciate to $619,557
2. Over 10 years, a $250,000 rental property in Buenos Aires will likely net an appreciated market price and accrued rental income of $579,538

Ultimately, even in comparing the rental property option to the US ETF investment option, investing in ETFs, and in this case, not withdrawing but letting the funds accrue, results in a much higher net value/return.

Assumptions for this comparison

Assumptions for investing in ETFs: 9.5% annual return

Assumptions for buying a rental property in Buenos Aires: $1000 monthly rent, 1.5% annual property taxes, 7% real estate appreciation, $200 monthly building expenses, and 6.8% transaction fees on purchase, and investing net profits each month in the ETF above to receive a 9.5% return on unused funds (to maintain apples to apples comparison)

For the possibilities of the rental property investment, the ETFs hold as the stronger option (higher net profit) until the monthly rent reaches $1300 per month, before finally reaching a break-even net profit of $620,000+. However, rental income of $1300 per month for an unfurnished apartment in Buenos Aires is a very far stretch.

Factors that heavily affect the numbers

• Transaction Costs
• Lower rental returns in Argentina (similar to many non-North American and non-Euro markets) relative to the initial investment
• Appreciation values are lower (than 7%) outside of my target neighborhood and throughout Argentina, meaning the higher appreciation could be localized or temporary.

What does this mean beyond Buenos Aires?

As with any financial observation, just because this scenario works this way for me does not mean that it will work for you. The most important aspects of creating a good financial plan are gathering your data, assessing your goals, and checking that the plan (or idea) fits for you. Even with this caveat, we can glean some lessons from the Buenos Aires Condo vs. ETF Rentvesting analysis.

1. If you live in areas that command lower rents (and rental returns) relative to purchase price, rentvesting may be a good geoarbitrage strategy for you.
2. If real estate transactions in the area you want to live come with higher-than-average transaction fees that eat at profits, rentvesting may be a good geoarbitrage strategy for you.
3. If you are only certain that you want to live in an area for 1 to 2 years and are uncertain if you can commit to 5 and ideally 10 years, rentvesting may be a good geoarbitrage strategy for you

Does this apply to other areas?

Buenos Aires, and Argentina as a whole, has been going through “interesting economic times” for a while now, which have led to underpriced real estate. However, being at the end of the world and not a tourist hotspot, compared to Bangkok and Barcelona, has affected returns. So, if rentvesting works because of this, how do other spots popular with nomads and expats fare?

In short, Colombia proves to be a solid option for purchase with appreciation and rental returns because of increasing tourism, while fewer foreigners are as committed to settling down and buying real estate.

Panama and some Central American companies may offer better rental returns than Buenos Aires, making them worthy of investment, but the suitability still depends on your long-term plan and lifestyle.

Most other nomad, backpacker, and “sovereign expat” hotspots popular for geoarbitrage are better candidates for rentvesting than real estate investment.

Buenos Aires’ most popular neighborhoods sit at ~5.8% average gross annual rental yield based on purchase price and before ownership expenses.

Colombia’s gross rental yield ranges between ~6.4% and ~9.6% depending on city and region, making Colombia a possible alternative, based solely on the numbers.

Panama’s gross rental yields are reported at ~6.8%, with 8% or 9% in some areas.

South Africa, as an increasingly popular destination and emerging economy, presents ~10.15% gross yields.

Savvy travelers will note that the escaping North Americans fleeing the US with retirement funds or a new thirst for quick travel are likely driving up rental prices and returns around the Caribbean, and bringing their own sets of issues.

Beyond these two options, many European countries, Georgia (~7.85%), Italy (~7.67%), Turkey (~7.13%), North Macedonia (~6.47%), Costa Rica (~7.84%), the Dominican Republic (~7.48%), and Puerto Rico (8.42%) have gross rental income numbers worth examining.

However, most other countries beyond these don’t present as much opportunity for geoarbitrage and rental profit potential.

Mexico hovers at 5.92%

Thailand offers 6% to 6.4% gross annual rental yields, and has the drawback of leasehold only ownership, which changes the net profit numbers significantly.

Vietnam has 3.2% to 3.5% gross rental yields, much lower than Argentina, and with the obstacle of leasehold-only ownership.

Portugal’s gross rental yield is 4.57% nationally, with a housing crisis and economic issues for locals.

• Indonesia: ~5.68%
• Chile: ~4.73%
• Greece: ~4.6%
• Poland: ~5.75%
• Czech Republic: ~3.95%

* Rental yield data courtesy of Global Property Guide *

---

We’ve reviewed the numbers that clearly state that the “rentvesting” approach is a more financially beneficial approach for expats and nomads, as investing in ETFs pays the rent and still generates a profit.

The only way buying real estate abroad would make for the best-case scenario is if owning a home had ample benefits over equities or other similar passive investments.

So, does it?

The Qualitative Advantages for Nomads and Expats of Equities as Passive Income Over Investing in a Home

Real estate has long been vaunted as having created the most millionaires in history. This may be accurate.

However, the ETF revolution and consumer access to stocks and investing have arguably created more freedom in how we can invest in good businesses and passive investments than any other option in history.

From the low cost Exchange Traded Funds that Vanguard introduced in 2001, to the fee free stock trades that Robinhood introduced in 2013 triggering Schwab/TD Ameritrade to do the same, the investing tools at our fingertips thanks to tech advancements and investment tools at our fingertips make it worth reassessing how we invest, what we invest in, and how it empowers our lifestyles.

For those who live a life abroad, whether self-supported via work online like digital nomads moving from cost-efficient locations, or expats operating in a self-sustained, sovereign way to optimize their lifestyle, the freedom to move and not be burdened by the place we are in is valuable.

While the allure of real estate investment and the potential profits can seem alluring, they come at the cost of either managing the investment yourself or incurring expenses. If managed by you, those bits of real estate eat at your freedom and mobility. If managed by others, ideally a capable team, those bits of real estate will generate ample additional expenses, and the risk of having a less-than-stellar real estate manager, which will happen at some point.

Despite these tradeoffs, though, there is the possibility that you are not buying real estate for income or profit; you are buying it to make it a home. In this case, I pitch two facts to you.

1. You can rent that home from someone else, so that they can take care of the maintenance and broken pipes instead of you. If the numbers for net income are the same, why wouldn’t you let someone else handle it?
2. Very few wanderlusters want to stay in the same place forever. Whether the time comes in 2 years or 5 years, you may want to move again, at which time you fall into the rental owner box. All things being equal, owning a rental property is less fun than not owning a rental property.

The bottom line is, if the financial side of things works out, owning a home delivers very few benefits over renting a home for 3 years at a time – in most locations (see the list of countries above for examples – the US is a firm exception to this loose guideline).

So, if owning real estate in the “rentvesting” approach doesn’t produce many benefits, what clear benefits are there of choosing equities for passive income as alternatives to real estate investment abroad?

The Benefits of Investing in Equities and ETFs for Passive Income

• Extremely liquid so that you can sell and switch plans at any time
• Exposes us to less taxation in our hosting country because all transactions happen online
• Opens possibilities to a loan against stocks to finance real estate purchases (Securities Backed Line of Credit)
• Has a higher net profit than most real estate in markets with average market returns being 10%, while high rental gross returns are rarely 10%
• Has lower responsibility (maintenance, taxes) and doesn’t require third parties (repairmen, rental management)
• It is truly passive income

Extremely liquid so that you can sell and switch plans at any time

Beyond the higher net returns, the biggest benefit of rentvesting with ETFs or stocks is liquidity, meaning your assets can be converted to cash easily and quickly.

For the ETFs I have held for years, I can submit a sell order that is often fulfilled within hours with minimal to no transaction fees.

By contrast, a friend near me in Bali was desperate to sell her villa, which stayed on the market for 9 months. The sale required closing costs, including agent fees and notary fees, as well as the challenges of offshoring cash.

Getting ETFs and stocks is quick and easy. Selling them is quick and easy.

ETFs and Stocks expose us to less taxation in our hosting country.

Granted, this assumes that you are not a tax resident of the country where you reside, but that is a completely different case. However, if you are not a tax resident in your new country, your sale of stocks shouldn’t trigger any taxes. For US citizens, the long-term capital gains rate of capital assets such as ETFs can potentially be 0% for the first ~$45,000 of capital depending on your tax situation and AGI, but confirm this with your financial and tax advisor before baking it into your plan.

If you are lucky enough to pay 0% taxes while cashing in on your ETF gains, this is far lower than most countries will charge on real estate capital gains taxes. (IRS Source)

Investing in stock markets and ETFs opens possibilities to a loan against stocks to finance real estate purchases (Securities Backed Line of Credit)

Homeowners have the awesome tool of a Home Equity Loan, to use their home to finance a large loan; however, this is only common in the US. If you buy a home abroad, especially in emerging markets, you will never be able to take a home equity loan.

However, by holding equities or ETFs, you may be eligible to take out a “Securities Backed Line of Credit,” which functions similarly but with stocks and can be used to fund any venture you choose, such as buying a home abroad!

Stock markets and ETFs generally have higher net profits than most real estate markets.

As we reviewed before, the average return on the stock market is 10%. Comparatively, high rental gross returns are rarely 10% and if they are, they may be in higher-risk or less convenient markets (like South Africa) – and these are gross returns, not considering ownership expenses.

Based on historical numbers, equities and ETFs have generated higher returns than most rental markets.

Stock markets and ETFs have lower responsibility (maintenance, taxes) and don’t require third parties (repairmen, rental management)

You will never have an ETF call you at 2 AM in Medellin to let you know that the tenants want to change the living room lighting from bright white to warm white. An ETF will never need to be remotivated or coaxed to finish a job. ETFs are truly passive investments.

Rental investments are semi-passive, and at times passive (depending on the quality of your rental manager). However, if you are living in the property that you own, vs. owning stocks that pay for the rental that you live in, one comes with problems that you must handle, and one comes with problems that are actually someone else’s problem.

Stocks and ETFs, in true investing, are truly passive income investments.

For all the gimmicks and BS that gurus flood your Facebook and YouTube ads with, stocks and ETFs are among the only true passive income investments that generate returns while you do nothing. You do not need to monitor them. You do not need to advise them. You do not need to manage them. You sit, wait patiently and passively, and they will generate the dividends and appreciation for you.

Recognizing the risks of rentvesting

As with all things in the world, nothing is perfect, and as such, the rentvesting strategy has its risks. By buying broad market ETFs instead of directly buying real estate, you do stand to miss some opportunities, and you will (at times) be taken for a ride in the stock market.

You could get priced out of the neighborhood.

I have lived in a handful of neighborhoods wherein the price of rent skyrocketed so quickly and drastically, always due to a sudden boost in tourism, that this moderate risk investment strategy might not have covered the rental increases. Top of the list is Canggu, wherein the cost of a small villa rental went from $750 to $2000+ in a matter of months. Telum experienced the same. Parts of Lisbon did as well. But the common denominator between those locations is – you would not want to live in them now. Anywhere so flooded by Instagrammers, influencer wannabes, and tourists on their one week of vacation is not a place you want to live day to day. Investing in such may be a solid investment strategy for good returns, but the approach to buying a good rental property is very different from buying a good home, and you will want to start the process accordingly.

Finding a little bit of paradise to call home for the next ten years, only to have the streets clogged with people taking selfies, is heartbreaking. However, I promise, if you can leave at the end of a lease with zero loss and find a new hidden place, you’ll be better off.

Know that you could get priced out of a market as tourism and gentrification roll in.

Also, know that most of the best places to live in the world aren’t overly touristed or gentrified, and you can always move on to one of those.

Once places cross these thresholds, profitability skyrockets and quality of life plummets. If you want a place to live a high-quality, affordable life, you will want to move on anyway.

You will (potentially) miss out on real estate gains, but investing in the right passive income investments (equities) hedges this risk. Over a 4-year cycle, you will most certainly have gains.

Many people who believe it is best to buy a house on a mortgage so that you don’t waste your rent and miss out on property appreciation (I’m looking at you boomers) haven’t analyzed the numbers involved with amortization, debt, and principal. They also haven’t analyzed how much properly invested money will work for you.

A $3.5 Million San Francisco House? Or $10 Million in Stocks?

Think of this scenario as investing in a house in Palo Alto, California, which averages $ 3.5 million now, and investing in the stock Palo Alto Networks, which went public in 2012. In 2012, an average house in Palo Alto, California, cost $1.7 million when Palo Alto Networks IPOed. If you had invested that $1.7 million in Palo Alto Networks’ IPO, it would be valued at $41,993,420, instead of the $3.5 million average Palo Alto home price in 2025. This is an extreme case, almost illogical, but it does make the point that with the right investment, an alternative to real estate, we could make smart decisions.

For example, if you had taken the $1.7 million average Palo Alto home price in 2012 and invested in the VTI ETF (broad US stock market ETF), the total value would be $9.76 million – enough to buy two houses and a handful of Ferraris to play around with.

If you don’t invest in anything, you stand to lose.

However, if you invest smartly, in the long term, you will likely win.

ETFs and their underlying stocks will inevitably have market dips, market cycles, bear markets, etc., so a sound investment and financial plan must underpin rentvesting

Rentvesting is underpinned by the idea of investing – holding your investments for the long term, through swings and dips. Not day trading, and not swing trading. This approach comes with the risk that you may experience paper losses at times, and whether those losses are realized depends on your actions. If you do choose this strategy, or even in creating your strategy, understand that the market is compensating you for the use of your capital and your risk. How your net profits pan out depends heavily on how you react, or don’t react, to those risks.

For those outside of ‘Murica

I realize the writing so far has likely felt US-centric due to the ETFs and equities mentioned. However, if a nomad or expat isn’t a US citizen and doesn’t live in the US, can they invest in similar funds?

Yes, non-US citizens and non-US residents can invest in broad US market ETFs. However, they will need to look at the tax implications of ownership as a foreigner (to the US). Additionally, I would encourage them to consult with investment advisors on other global ETFs that offer similar returns and risk profiles.

After doing the research and consulting a savvy investment advisor, if a non-US citizen wants to invest in the US markets, here’s how to do it…

1. Open an international brokerage account with access to US markets

Interactive Brokers has options available with access to US markets and low fees

Additionally, Charles Schwab International offers the Schwab Global Account, but this requires a minimum investment of $25,000

Lastly, eToro / Saxo Bank / DEGIRO offer options depending on the region, but some ETFs are blocked for regulatory reasons.

1. Research the tax implications based on your nationality to see if the numbers still work based on your nationality.

There is a 30% withholding tax on dividends from US stocks (including ETFs like VTI) unless otherwise stated. However, this rate is reduced (often 15%) based on tax treaties with the US(e.g., Germany, UK, Canada). Be sure to file IRS Form W-8BEN with your broker to claim treaty benefits.

Alternatively, consider looking into UCITS funds to access mirror ETF funds from European and Asian markets.

Bottom Line Insights for all Expats and Nomads

Do not immediately jump to property ownership as the go-to approach for investing, generating investment returns, or preserving your wealth. Though “home ownership” has been assumed to be the best path to wealth in the “normies guide to living,” for expats and nomads, the options we have at our fingertips, and the tradeoffs that we prioritize, introduce other, better, more suitable options for creating a home than “buying real estate.”

Get the Downloadable Excel Spreadsheet Free and Run Your Own Numbers

• Free Downloadable Spreadsheet for calculating ETF Investment + Paying Rent vs. Buying a Home
• Free Downloadable Spreadsheet for calculating ETF returns vs. Real Estate returns

Sources:

• https://www.globalpropertyguide.com/rental-yields

Related Reading

• The FIRE Movement: A Complete Guide to Financial Independence, Retiring Early and How to Make It Happen in Your 20s, 30’s, and 40’s
• How to Become Financially Independent: A Complete Guide and Summary of the 15 Best Personal Finance Books