We examine where in the world expats are currently earning the most money and enjoying the highest disposable incomes
The global economic situation is far from positive and affluent at the moment, which means that many people are considering a move overseas in a bid to escape the worst of the financial doom and gloom in their own home country. The only trouble with taking this approach is that you have to ensure you pick the right nation to relocate to, otherwise you could be in a worse situation if you're not careful!
Many of the world's countries have been affected – whether directly or indirectly - by a whole host of negative fiscal issues, therefore choosing the nation you relocate to next must be done very carefully indeed, if you are to prosper.
The good news is, if you have your heart set on moving to a nation where you can earn more and/or have greater disposable income, HSBC's Expat Explorer survey results for 2011 reveal the top 5 countries where expats currently earn more money, and have more money to spend and enjoy. In this report we're going to take a look at each of the top 5 nations in turn…
1) Saudi Arabia
Expats living in Saudi report having significantly strong disposable income: in part this is because their salaries are less eroded by taxation, and in part this is because many expats in Saudi still enjoy attractive employment packages.
Such packages can include accommodation or money towards accommodation – and if you remove taxation and housing from your monthly wage, you're left with a lot more money to play with.
However, another reason why expats report having strong disposable income levels is because there is less for them to spend their money on locally. Saudi is not a party capital like Dubai for example! Which is also perhaps why the expats surveyed in Saudi report that a key way for them to enjoy their excess cash is from taking luxurious holidays elsewhere!
2) Egypt
Interestingly Egypt scores exceptionally well in HSBC's Expat Economics survey, but it performs badly in their Expat Experience survey. This is strongly attributed to the deterioration on the local political scene, and the knock on effects this has had nationwide for personal security for example.
Expats living in Egypt cite strong salary options, strong disposable income factors, and rather than splurging their excess wealth, they are far more likely to save their money. Again, perhaps this is because of the instability that such expats live with in their day-to-day lives in Egypt at the current time.
It's also worth noting that there is quite a fast turn over of expats in Egypt – perhaps again because of the unstable landscape, it's not an environment where expats remain for the medium to long-term at the current time.
3) Singapore
Singapore is a high paying, high earning location, where expats also benefit from lower levels of taxation. They end up having more disposable income as a result but – and it's a big but – the cost of living in Singapore can be very high and demanding.
What this means is that whilst Singapore reached number 2 in terms of the nations where expats' incomes are highest, it dropped down a place as soon as affordability was brought into the equation.
To enjoy a good standard of living, expats have to pay out a lot for the likes of accommodation and education…
4) Russia
Russia scored particularly highly for income levels and disposable income levels, with expats reporting that on many levels, affording a decent standard of living in Russia was eminently achievable. However, from our own research there is a very noticeable discrepancy between salary levels for jobs in different sectors.
Whilst this is of course the fact in any nation, in Russia even some of the sectors where expats might expect to find high paying jobs have limited salary options. Therefore, if you're looking at Russia, ensure your salary expectations are realistic!
5) Switzerland
Switzerland has a lot in common with Singapore for expats in terms of money matters. It's a nation with high salaries and low taxes, where expats enjoy strong disposable income – but where that wealth is quickly eroded by the day-to-day cost of living for those who want to achieve a high standard of living.
No one should ever underestimate the cost of living in Switzerland – from accommodation to groceries, from education to healthcare, costs are universally high.
Therefore, if you've been offered work in the nation and it appears to be exceptionally well paid, ensure you visit and examine what costs you could face as an expat before you commit to your relocation.
In Conclusion…
From the results of HSBC's Expat Explorer survey it's possible to compare the wealth enjoyed by expats in many nations around the world.
The above detailed 5 nations come out on top in terms of countries where expats specifically earn more – but because the cost of living and the quality of life achievable overseas are of equal importance to many expats, you may want to concentrate your own research on where in the world offers you a perfect balance between all the critical aspects for your relocation.
