For ultra-high-net-worth Americans who traded the bustle of Wall Street or the buzz of Silicon Valley for the sunlit terraces of Madrid or the serene countryside of Provence, the shifting tides of currency markets have added a new layer of complexity to life abroad.
Once drawn overseas by the combined allure of favorable exchange rates, attractive property investments, and enviable European lifestyles, U.S. expats are now reassessing plans as the dollar continues to weaken against the euro.
John Workman, Managing Director for Investment Strategy at Pathstone, understands these dynamics firsthand. Having relocated to Spain in 2019, before remote work triggered a broader migration wave, Workman empathizes with the balancing act required when managing wealth across borders.
But as the U.S. dollar softens, expats are becoming increasingly cautious. According to Workman, while the euro’s recent surge from approximately $1.03 to highs of around $1.15 feels abrupt, it isn’t altogether surprising to seasoned expats.
That trend has continued. As of late July 2025, the euro is trading in the range of $1.17 to $1.18, marking a 13% gain from early-year lows and surpassing even Workman’s own expectations of a potential 10% dollar decline.
“Expats keep a baseline expectation in mind of the EUR/USD exchange rate informed by the recent past,” Workman explains.
While the currency shift has triggered moments of regret among expats who delayed big-ticket purchases, such as real estate or luxury goods, Workman doesn’t see it as causing significant changes to property strategies.
“The recent pullback is no doubt making some people regret not having bought something when the USD was stronger a few months back,” Workman acknowledges.
Generally, Americans abroad continue to keep the bulk of their financial assets denominated in U.S. dollars. Advisors note, converting large sums or moving portfolios into foreign currencies can create unnecessary tax and compliance complexity.
“It’s one thing to set up a bank account in Europe and hold some assets in euros there, but it’s a much bigger step to hold significant cash balances or to move entire investment portfolios, especially considering that U.S. citizens are taxed on worldwide income,” Workman points out.
Lifestyle-wise, most affluent expats aren’t feeling dramatic pressure to cut back. In fact, in many parts of Europe, the relative cost of living still compares favorably to the U.S. Workman illustrates this with a bit of humor, comparing the cost of coffee and theme parks on both continents to highlight the practical differences.
Beyond personal budgets, evolving policy landscapes in popular European locales are prompting additional reflection. Short-term rentals and residency-by-investment programs are under growing scrutiny from local governments, and Workman suggests it’s important for expats to stay attuned to such changes.
He adds a final observation: while questions around relocating assets abroad are surfacing more frequently due to the rapidly shifting environment in the U.S. and macroeconomic uncertainty, most conversations remain exploratory.
Ultimately, the considerations for high-net-worth expats are as personal as they are financial. As Workman suggests, navigating global currency shifts is not about reacting hastily but about staying informed and thoughtful. It’s this kind of adaptable planning that ensures families abroad can continue to enjoy the lives they’ve chosen with confidence and clarity.