How much do you need to earn to have a similar or better standard of living in another country? We discuss cost of living, quality of life and issues that impact expats. And offer International cost of living index comparison and expat salary calculators.
Wednesday, October 24, 2012
Tax and International Salary Calculations
For example: "Does the calculator take into account the tax rates of each country. I currently pay about 38% in Australia but the UAE tax rate is nil. should I enter my before tax or after tax salary into the calculator."
We advise using net (after tax) salary. The calculator will then apply the following formula based on the selections in the calculator:
Net Salary in Home Location X Cost of living Index Differential X Exchange Rate X Hardship Differential = Calculated Net Salary in Host Location
If you use net salary the result will be the net salary in the new location. Given the tax rate is nil in AED the net salary would not be grossed up for tax but will be adjusted for cost of living, hardship and exchange rate. If however the new location tax rate was 25% then the net salary would be grossed by 25% to arrive at the equivalent gross salary in the host location.
Sunday, October 21, 2012
How Costly Is It To Be An Expat?
What makes Tokyo the most expensive place for expatriates is that it is particularly expensive for the items that consume the largest portion of an expatriates living costs.http://www.articlesbase.com/international-business-articles/how-costly-is-it-to-be-an-expat-6250248.html
Tokyo Takes Number One Spot As Most Expensive For Expatriates
Tokyo is the most expensive location in the world overall taking all elements of the cost of living into account. It is the most expensive place for expatriates in that it is particularly costly for the items that consume the largest portion of an expatriates living costs. Article Source: http://EzineArticles.com/7333455http://www.onlywire.com/r/107191117
Cost of Living Rankings For The Middle East October 2012
The most expensive countries in the Middle East for expatriates to live in are: Qatar; United Arab Emirates; Israel; Iran; Lebanon. What other cost of living news is there for the fourth quarter of 2012?http://internationalcostofliving.com/2012/10/15/cost-of-living-rankings-for-the-middle-east-october-2012/
What are the Cost of Living Rankings for Asia Pacific for October 2012?
Tokyo as the most expensive city in Asia-Pacific, Tashkent has become less expensive for expatriate’s to live in relative to other global locations. What are the other Cost of Living rankings for the Asia-Pacific Area?http://www.onlywire.com/r/107189082
How Expensive Is The Cost of Living in Europe?
- Most expensive countries for expatriates to live in are: Switzerland; Monaco; United Kingdom; Norway; and Liechtenstein
- The most expensive cities for expatriates to live in are: Zurich (Second most expensive in the world); Geneva; Monaco; London; and Oslo
- The cheapest city for expatriates to live in is: Bucharest in Romania (764 most expensive in the world)
Particularly expensive in Zurich are the following basket groups, groceries, healthcare, restaurants meals out and hotels, and transport. For example a 1 kg bag of apples averages $5.08 in Zurich, 1 kg boneless, skinless, chicken breast $32.65, 1 kg cheddar cheese $23.80, and a 500g loaf white bread $3.17. A private practice doctor visit for an uninsured patient is likely to cost $125 on average, and a private hospital stay, including nursing care, medications, diagnostic tests, food, and related costs will average $3,675 per day. A cappuccino (regular, medium) costs on average $5.14, while a meal out (for 2 mid-range restaurant) $103.40. The average price over the last year for highest available octane petrol / gasoline has been just over $2 per litre.
The below ranking shows the overall Cost of Living Rankings in Europe by city:
- Switzerland, Zurich
- Switzerland, Geneva
- Monaco, Monaco
- United Kingdom, London
- Norway, Oslo
- Liechtenstein, Vaduz
- Denmark, Copenhagen
- Russia, Moscow
- Jersey, Saint Helier
- France, Paris
Monday, October 15, 2012
How Expensive Is The Middle East in October 2012?
- The most expensive countries in the Middle East for expatriates to live in are: Qatar; United Arab Emirates; Israel; Iran; Lebanon.
- The most expensive cities in the Middle East for expatriates to live in: Doha (122 most expensive in the world); Abu Dhabi; Dubai; Jerusalem; Tehran
- The cheapest country and city in the Middle East for expatriates to live in: Sanaa in Yemen (711th most expensive in the world).
Doha is the most expensive city in the Middle East mainly because it is a relatively small centrally controlled economy undergoing rapid growth with large scale infrastructure projects. More than 80% of expatriates in Qatar live in Doha. With a limited number of suppliers of goods and services to the country, when a shortage is experienced in one store, it is usually an indication that all stores will be out of stock. Most goods and services are imported at great cost. Added to the fact that salaries are reputedly the highest in the region (Nationals received a 60% salary hike in September 2011), the cost of living in Doha has increased relative to other cities in the region.
Particularly expensive in Doha are the following basket groups, alcohol, communication, furniture & appliances, housing, and meals out. Alcohol for home consumption, is available for those with a liquor permit, from one shop supplying the country. A midrange bottle of wine is approximately $24, beer ranges from $2.50 to $4.50 for a premium beer. A monthly standard plan internet subscription (4 Mbs) is $113, while the benchmark mobile tariff is $0.13 per minute. A a Blu-ray player averages $145, and you will pay around $1,436 for a 46 inch LED HD TV. While housing has become more affordable since the shortages a few years ago, the benchmark rental for a secure upmarket unfurnished apartment (3 bedrooms) is $4,448 in a central location, and $2,891 in a suburban location, per month, excluding utilities. Meals out in hotels is very expensive, but as in most cities more reasonable priced options can be found outside of the hotels and malls. Fuel is very cheap at just under $0.28 per litre, and vehicle prices are reasonable compared to
most other parts of the world.
The Top 10 overall Cost of Living Rankings in the Middle East by city:
- Qatar, Doha
- United Arab Emirates, Abu Dhabi
- United Arab Emirates, Dubai
- Israel, Jerusalem
- Iran, Tehran
- Lebanon, Beirut
- Bahrain, Manama
- Kuwait, Kuwait City
- Palestinian Territories, West Bank
- Saudi Arabia, Riyadh
New York City is used as the base for the cost of living index rankings and the US dollar is used as the base currency. The cost of living data collected is representative of an expatriate lifestyle, where the local prices for fixed quantities of the same good and services at or near each location, and US dollar exchange rates are used. Prices in each location are affected by availability (i.e. supply and demand) as well as local pricing regulations and taxes on goods and services (e.g. premiums on luxury goods). Local inflation is usually representative of local price increases, which in turn impacts an expatriates purchasing power in the host country. The exchange rate impacts both the price of imports to the host country and the expatriate assignment salary calculation between the home and the host country. The cost of living has a significant impact on the purchasing power of an expatriate’s salary package.
Tuesday, October 9, 2012
What are the Cost of Living Rankings for Asia Pacific for October 2012?
- The most expensive countries in Asia Pacific for expatriates to live in are: Japan; Papua New Guinea; Singapore; Australia, China
- The most expensive cities for expatriates to live in are: Tokyo (the most expensive in the world); Hong Kong; Yokohama; Osaka; and Nagoya
- The cheapest city for expatriates to live in is: Dushanbe in Tajikistan (766 most expensive in the world)
Which cities / countries drop in the ranking, and which moved up?
- The biggest mover down the rankings is Tashkent in Uzbekistan, which has dropped to become the 474th most expensive location in the world.
- The biggest mover up the rankings is Papeete in French Polynesia, which has risen to be the 117th most expensive location in the world.
Reasons for this movement:Tashkent has become less expensive for expatriate’s to live in relative to other global locations. This is mainly due to the depreciation of the Uzbekistan Som against the US Dollar over the past year. In September 2011 US $1 could buy UZS 1750, today that has risen to over UZS 1920, increasing expatriate purchasing power by just under 10% in one year.
Papeetes high cost of living is mainly due to the fact that most goods and services are imported at great cost. Furthermore the economy is exposed to the global economy through its heavy reliance on tourism which went into a long decline from 2006 and was compounded by the global recession. Groceries and communication are particularly expensive.
Tokyo as the most expensive city in Asia-Pacific and the world has an overall cost of living index of 139.89 compared to New York with an index of 100. Tokyo is followed by Zurich, Geneva and Luanda in the world rankings.
Tokyo is the most expensive city mainly because of the historical strength of the Japanese currency, the high population density, the high level of salaries, and the lack of resources which result in a high proportion of imports. Particularly expensive in Tokyo are the following basket groups groceries, healthcare, housing, and transport. Benchmark price in a major international retail store for 1 kg apples is $7.08, 1 kg boneless, skinless, chicken breast $11.91, 1 kg cheddar cheese $18.22, and 1 L full cream milk $2.73.
Benchmark price for a private practice doctor visit for an uninsured patient is $125, and a private hospital stay per day including nursing care, medications, diagnostic tests, food, and related costs is $3,675. Benchmark rental for a secure upmarket unfurnished apartment (3 bedrooms) is $6,293 in a central location, and $3,209 in a suburban location, per month, excluding utilities.
The below ranking shows the Top Ten Cost of Living Rankings in Asia Pacific by city:
- Japan, Tokyo
- China, Hong Kong
- Japan, Yokohama
- Japan, Osaka
- Japan, Nagoya
- Japan, Kobe
- Japan, Kyoto
- Japan, Kawasaki
- Japan, Fukuoka
- Papua New Guinea, Port Moresby
Xpatulator.com Head of Client and Marketing Services Denise McManus that: “Expatriates have long known that Tokyo is a very expensive posting. However it is possible to live within your budget by making sensible choices, for example we know that taxis are expensive, so rather save money and make use of the train service. There are also many expensive restaurants, particularly western branded ones, rather explore some of the many lower and medium-end options.”