Moving Costs – will they be reimbursed? Most expats use the Physical Presence test to qualify, which requires that you are inside a foreign country for 330 of any 365-day period. Housing allowance is also a common feature of an expatriate package and may include costs for basic utility services and domestic help. These days, the corporate world has no boundaries! Secondly, don’t go in empty-handed. This week we’re speaking with a woman who was facing an overseas move and needed to negotiate her expatriate package. For example, in Hong Kong you can exclude $114,300 in housing costs whereas in Rio de Janeiro you can only deduct $35,100. An average value of a package for an expatriate middle manager in mainland China is around $276,400 now. One of your key goals should be to negotiate the best possible payment package. Is the cost of living in Hong Kong affected by diminishing expat packages? A typical expat package will often include travel costs for you and your family to visit loved ones back home. International moves are not cheap. International moves are not cheap. Pay variation also acknowledges the difference in an expat’s lifestyle compared to their original home country, including cost of living, currency exchange rate, as well as the relative hardship of the post. More and more employers are recognizing the value of a global workforce. In some cases your employer may also provide accommodation for you, at least on a temporary basis when you arrive, to give you time to find somewhere to settle. This variation in expatriate pay is partly due to location - for example expats in San Francisco tend to be paid higher than expats working in similar jobs in Paris. Of course you should also consider the other standard benefits you will get with your employment package such as annual leave, which may differ from home, and international health insurance to ensure your healthcare needs are met. Singapore is ninth in the Asia Pacific regional rankings this year. However t, his pay variation is not only related to local factors such as supply and demand and the availability of employment in your new host country. While moving abroad can be a personally, professionally and financially rewarding experience, it is important to fully evaluate your contract to ensure the best outcome for you. Let’s take a look at some of the most important tax considerations when negotiating an overseas contract. Do your research and see what is the standard package for your industry or company, and consider factors such as the the cost of living and relative hardship of the post. I hold a master's degree from HKU, and have worked in the area of student/workforce development in NYC (my home) for sometime now, therefore I am both experienced and qualified. allowances that aim to cover the costs of relocation and make the process smoother Negotiating a relocation package can be tricky. “A typical family with two children can easily spend AED250k ($68k) annually on a prime location in Dubai, and this is rising,” says Nigel Sillitoe, chief executive of Dubai-based consultancy Insight Discovery. Remember that if you are planning to purchase a car, your allowance should be sufficient to cover fuel costs and insurance. The types of expenses you can deduct include: When you are negotiating your contract, ensure that your reimbursement or salary is sufficient to cover your housing costs, while keeping in mind that you may be able to offset some of them with the Foreign Housing Exclusion. However, in the last two years, things have undergone a rather drastic change in this country, which is evident in the fact that the expat pay package has … These factors contribute to the experience of a better quality of life in Hong Kong for expat managers. People moving to Hong Kong on an expat employment package should try and negotiate a shipping allowance in their contract. The rapid growth in people working abroad can partly be attributed to the lifestyle benefits of living overseas, as well as the exclusive perks and benefits often offered to expats by their employers. The number of employees moving overseas for their job has increased exponentially. Lee Quane, Regional Director, Asia for ECA International explains why. According to research by Statista, expats living in San Francisco take home more than USD 200,000 annually, demonstrating that many expats do earn large salaries. The overall expat pay package in Hong Kong has risen by a total of USD 7 902 since last year, with increases to salaries and benefits making up the vast majority of the increase. One of the most important issues for any person or family that is sent abroad by their company is the expat relocation package. If your contract requires frequent trips back to the US, keep in mind that this could seriously impact your finances. The survey questions expats living in countries around the world and gives an accurate report that potential expatriates can use to understand how their financial situation might change, for better or worse. Moving abroad for your career can be a life-changing experience and since many of us here at Greenback are expats ourselves, we encourage you to take advantage of this amazing opportunity! It's also worth noting that in some parts of the world it is better to hire a driver instead of driving yourself, so you may need to factor this into your allowance budget. 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