Every individual who contemplates moving abroad has their own personal agenda driving their decision making process. For some it’s about retiring to a place where the sun always shines and the mojitos are free flowing – for others it’s about career advancement or lifestyle improvement. However, I know for a fact that there is one definite reason that many expat executives have for having chosen the path of relocation, and that is a purely fiscal one!
You can earn more abroad, you can save more abroad, you can potentially enhance your tax position overseas – and all of this adds up to one thing, namely the so-called ‘expat advantage.’
The expat advantage is where you advance your wealth status more quickly and more effectively than you would have done had you remained back onshore in the US/Canada/Europe and in your old job, living your old way of life…
If you’re after earning a faster buck, you can potentially earn it abroad – and thanks to a detailed and in-depth survey conducted by one of the world’s leading banking organisations, you can now put your finger on the places on the map where expat executives are remunerated more generously.
According to the latest HSBC Bank International Expat Explorer Survey, the highest proportion of expats earning more than 250,000 US dollars are in Russia (30%), Hong Kong (27%), Japan (26%), Switzerland (25%) and in India (25%) - compared with the global average of 16% of expats who earn over this sum. But if we’re talking about the overall picture of wealth, we need to take into account the fact that the cost of living in the likes of Russia, Hong Kong, Japan and certainly Switzerland is incredibly high! Therefore, perhaps India should be your number one consideration if you’re just looking at the financial statistics – because over 40% of the expats questioned who were living in India stated that their cost of accommodation and day-to-day living was far lower than it was ‘back home.’
Note, expatriates from many nations and all backgrounds were included in the survey – not just Americans and Westerners from what are considered wealthy nations…so chances are, 100% of Western/American expats would find the cost of living in India far cheaper than ‘back home’ – meaning that with a higher than average salary and a lower than average cost of living, you could be creaming it in the savings stakes!
Or, to phrase that more clearly – did you know that over two-thirds (68%) of expats surveyed by HSBC reported that they are in a position to save and invest far more since they moved abroad – with this figure rising to 80% when looking at the highest-paid expats. This proves that not only can you earn more and spend less when you move abroad, but you can advance your wealth status by stashing more of your cash away for a rainy day.
If you’re in a position in life where you perhaps want to get a deposit together to buy your first home, put a sum away towards your retirement, fund your child’s college education or just save yourself some money to give you financial security later in life, going abroad to live and work hard for a fixed period of time can provide you with the wealth you need. However, you should perhaps be warned that whilst your reasons for relocation may really be as simple as money – and the tangible rewards you reap may only be the cash in your bank – there is, in all likelihood, the very real chance that you will also gain a whole wealth of positive experiences along the way that will make even the money seem insignificant in the end!
February's Editor
Planning Where to Move to Next...
Easy subscription, easy to unsubscribe - No Spam
Back to Expat Daily News
Subscribe in a reader
3 comments: