Real Estate strategies for global uncertainty: A guide for international buyers

1. What’s going on with Trump’s tariffs?

In recent months, U.S. President Donald Trump has proposed a sweeping set of tariffs on foreign imports. These tariffs are essentially taxes placed on goods coming into the U.S., intended to protect domestic industries and raise revenue. While they aren’t aimed directly at real estate, their broader economic consequences are being felt—especially by global buyers using the U.S. dollar.

So, what does that mean for international property investors?

Tariffs raise trade costs, reduce demand for U.S. exports, and fuel economic uncertainty. This undermines investor confidence and weakens the U.S. dollar compared to other major currencies.

Here’s a real-world example:
At the start of 2025, $1 million USD would have bought you approximately €975,000. Now, following the latest tariff developments, that same amount only gets you around €915,000—a loss of €60,000 in just three months.

For international property buyers, this means reduced purchasing power—unless you act early or work with a foreign exchange partner to lock in a more favourable rate.

2. How can buyers hedge against this uncertainty?

For buyers using U.S. dollars or holding assets in volatile currencies, there are several strategic ways to protect themselves:

Lock in a foreign exchange rate early

Currency specialists like Lumon can help lock in an exchange rate for up to 12 months, protecting your buying power and giving you certainty in an otherwise unpredictable market.

Diversify your real estate and financial portfolio

Investing in a stable market like Spain is not just a lifestyle move—it’s a strategic hedge. In times of global instability, holding euro-based assets can protect against dollar depreciation and spread financial risk across currencies and jurisdictions.

As Shane, President of EAFA (EuroAmerican Financial Advisors), a leading provider of financial and investment advice for Americans moving to and living in Spain, puts it: “Don’t wait to see what happens—focus on global diversification.”

EAFA specializes in helping U.S. expats build globally diversified portfolios that are tax-optimized in both countries.

“We work with Americans before they move abroad, ensuring they avoid costly mistakes and structure their finances smartly for life overseas.” Work with U.S. clients to consult with cross-border experts early—this can save them significant money and smooth the transition.

Work with a financial advisor or wealth manager

Beyond property, a wealth manager can help structure the purchase in a tax-efficient, long-term way—factoring in estate planning, cross-border taxation, and lifestyle goals. Especially in times of economic flux, expert financial planning can make the difference between a good investment and a great one.

Act now

Many buyers delay financial decisions during periods of uncertainty. But in this case, waiting might reduce your purchasing power or result in higher borrowing costs down the line.

3. What’s the ripple effect on mortgage rates?

Trump’s tariffs could drive higher inflation in the U.S., prompting the Federal Reserve to raise interest rates even further. With U.S. mortgage rates already between 6% and 6.25%, that’s a significant burden for American homebuyers.

In contrast, Europe is heading in the opposite direction. The European Central Bank (ECB) is widely expected to cut interest rates at its next two meetings. With inflation dropping close to the ECB’s 2% target and growth prospects challenged by trade tensions, rate cuts seem increasingly likely.

The current deposit rate of 2.5% is expected to fall to 2.25% this week, and potentially to 1.75% by the end of the year.

We’re already seeing the impact in Spain, where lenders are reducing fixed-rate mortgages. For a typical 25-year term, non-resident buyers with a strong profile are now seeing rates under 3%, trending towards 2.5%.

“We’re seeing a real shift—especially among U.S. clients—who are drawn to Spain’s lower rates and lifestyle appeal,” say the team at Mortgage Direct, who report a significant increase in enquiries from U.S. buyers in recent years.

4. Why Spain remains a safe bet for property investment

Spain continues to attract international buyers, particularly from the U.S., who are drawn to its:

Mediterranean climate and relaxed lifestyle
Excellent healthcare system and safety
Competitive property prices
Attractive cost of living
Long-term economic prospects

Beyond lifestyle benefits, Spain’s economy is outperforming the wider eurozone. The International Monetary Fund (IMF) forecasts 2.3% growth for Spain in 2025, compared to just 1% for the broader euro area.

Spain also offers:

A stable legal framework for international buyers
Transparent property acquisition processes
Long-term market stability in prime urban and coastal areas

Even during periods of global uncertainty, Spain’s real estate market has remained resilient. Over the past decade, property prices have seen steady average annual growth of 3.5%–4%, particularly in high-demand locations.

Final thought: strategy over speculation

With global markets in flux and currency values shifting, real estate buyers—especially those using the U.S. dollar—must think strategically. Spain offers not just lifestyle and value, but also stability, low borrowing costs, and solid long-term growth potential.

Whether you’re buying a holiday home, relocating permanently, or looking to diversify your portfolio—now is the time to act.