Monday, March 21, 2011

Expatriate Spotlight on Tirana in Albania

Tirana is the capital and largest city of the Republic of Albania. Albania is poor-performing by Western European standards, but is making the difficult transition to a more open-market economy from its communist past. Tirana is Albania's major industrial centre. It has experienced rapid growth and established many new industries since the 1920s. The principal industries include agricultural products and machinery, textiles, pharmaceuticals, and metal products.

Cost of Living compared to Seattle, WA:
  • Alcohol & Tobacco is more expensive;
  • Clothing is more expensive;
  • Communication is cheaper;
  • Education is cheaper;
  • Furniture & Appliances is cheaper;
  • Groceries is cheaper;
  • Healthcare is cheaper;
  • Household is more expensive;
  • Miscellaneous is cheaper;
  • Personal Care is cheaper;
  • Recreation & Culture is cheaper;
  • Restaurants Meals Out and Hotels is cheaper;
  • Transport is cheaper.
*As at 1 January 2011

The overall weighted cost of living difference between Seattle and Tirana is -19.85%.

Hardship compared to Seattle:
Seattle is ranked as a minimal hardship location with a hardship premium of 10%. Albania, Tirana is ranked as an extreme hardship location with a hardship premium of 40%. The relative difference in hardship premium (i.e. Host Location Premium minus Home Location Premium) is 30%.

Salary Purchasing Power Parity (SPPP)
The SPPP report calculates how much you need to earn in another location to compensate for a higher cost of living, hardship, and the exchange rate, in order to have the same relative spending power and as a result have a similar standard of living as you have in your current location.

A person would require a salary of 110,152.46 US Dollar (USD) in Albania, Tirana to have the same standard of living as currently enjoyed in USA, Seattle Wash on a salary of 100,000.00 US Dollar (USD). This salary compensates for the overall cost of living difference of - 19.8475%, the hardship difference of 30%, and the exchange rate.

SPPP Formula: Salary in Seattle ($100,000) + Cost of Living Difference (-$19,847.54) + Hardship ($30,000) = $110,152.46 Salary in Tirana

Read more about Tirana

Demo SPPP Report®

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