Archive for category Expatriate Pay

The Cost of the Expat Summer Holiday

The air of excitement that we all felt while waiting at the airport to go home for the summer holidays was noticeable everywhere.  It was 11pm, 2 weeks into the summer holidays and yet the airport was still crowded with expats on their way home for the 2 – 3 month holiday period to destinations all over the world.

 

It is the strangest sensation, leaving your home behind.  Locking the doors and knowing that you will not be back in your own home for that period of time.

 

Before we became expats we would never have considered such a long holiday, that would have been insane.  Now after 3 years, it is normal.  We either ship the animals into a boarding home or get a house sitter, cover as much as we can to keep it clean while we are away, say goodbye to friends and neighbors, arrange to meet family and friends on the other side and off we go.

 

Those first two weeks are the best, catching up with family and old friends that have known you forever, that know your quirks, bad and good points.  Getting back into the groove of your home country, slang, driving and food, which takes approximately 1 minute.  Settling down to a good home cooked breakfast that you can only get and have cooked as you have always known it to be.

 

You book every doctor you can think of to ensure that all your routine medicals are completed before you go home.  These lead to more medicals and you spend another two weeks running from pillar to post ensuring everyone goes back to your host country healthy and happy.

 

You try and visit all the local historical sites, places of interest and fun parks to ensure that the kids are having fun and are being educated along the route.  You cram in as much time with Gran, Grandad, Aunts, Uncles, Cousins and any other form of relative you can find so that the children can have the time in these 2 months with their family that they have missed out on over the last 10.  Old friends are gathered together for catch ups, school and uni friends of your own, school friends of your children, work mates, and friends that you have made over the years and in the rush you find the excitement exhilarating.  Shopping becomes fun as you hit all the old haunts and stock up on little delicacies you cannot find in your host country. In our case that would be pork and having a glass of wine at a side cafe.

 

That is usually our first port of call, to find a restaurant at the airport as we land and have a good old English Breakfast of Bacon, egg, bangers, tomato and toast.  Then as the weeks pass, there would be the obligatory spare ribs, bangers and mash, pork rashers and pork chops and last but not least a good pork roast.  Having said that these 2 months fill you up for the next 10.

 

Unfortunately during this time, your partner has to go back to work.  Most partners manage 3 or 4 weeks with the family, or do 2 weeks on and then go back and work and come back for another 2 weeks.  This is the period which I call the bachelor / ette time, where the host country sees a menagerie of single people floating around.  They seem lost and without focus and tend to gather around in groups, not quite knowing what they should be doing and where they should be going. Lost phone calls make their way to the home country, of days of missing family and spouses, of missing the constant noise in the house, of missing the mess and rushed breakfasts.  On the other hand, some partners love the time apart to chill, go out and have no responsibilities but for themselves. The spouse in the home country also misses the normality of home life, but is in essence still in the romantized dream of catch up.

 

It is not all roses though, unless you have a home in your own country, you are living with family and out of suitcases.  If you are traveling, you are living in hotel rooms. It is a long time to be away from home.

 

Then there is the time to come home.  To pack and say your goodbyes, knowing that you will not see everyone again for a long time.  It is an idolized lifestyle. You are the expat, the one with the exciting life, the one that has taken the initiative to embrace change.  This does not stop the tears though, each goodbye has its own lonely heartbreak, as you see your children hug their grandparents and cousins that they love so much.  As you cling on to your parents and siblings, knowing that you will only touch again in a very long time to come.  It is tough.  One of the tougher holidays to go home for, as it is longer and you settle back into your home country routine again, things are comfortable and familiar, you know the shops, the people, the roads, the customs.

 

You say your goodbyes and at the airport on the way home the kids start chatting about their rooms, their toys, their friends, their new school year and after school activities.  They talk about what they are going to do in the new school year and how much they are looking forward to the new challenges.  You think of your own challenges, your own room, your own new friends and you know that it is fun and that you are going to embrace the new school year with vigor and enthusiasm to match those of your children.

 

As an expat how was your holiday? Did you go home, travel the world? What did you do?

 

Denise is an Expat, Mom, Wife, writer and Marketing Manager at  http://www.xpatulator.com/ a website that provides cost of living index information and calculates what you need to earn in a different location to compensate for cost of living, hardship, and exchange rate differences. The complete cost of living rank for all 300 locations for all 13 baskets is available here.

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Which expat are you?

The one great advantage when you exercise is not only getting fit and in shape, but also that it gives your mind time to think.  My thoughts during my last session was on the different types of Expats that you get.  I am not referring to nationalities or cultures but more to the country that you find yourself being an expat in which can determine the type of expat you will be.

I determined that there are 3 types of expat country experiences:

1. When as an expat you move to a country that is similar to your own, but you are still culturally different, e.g. an American moving to Britain.  Fundamentally, you speak the same language, you eat similar foods, you have similar cultural habits and have watched movies or listened to music that is, can I say it again, similar.
However, even with these similarities there are differences too, they are minute but they are there. Whether it is a word that is different but has the same meaning, e.g. Barbeque to the South African Braai, or the way you address someone from a courteous “Hello, how do you do?” to “Hiya doin?” There are differences and you can feel and do experience these within the country. Your accent is also a dead giveaway and sometimes as an expat you are shunned purely due to this basic difference.

2. The country in between two extremes, this would be the expat that moves from e.g. Australia (English being the common language) to the Middle East.  Your official business language is English and most people would be able to speak and understand English, but you cannot do the same for their official language.  There is a commonality that exists as well, this host country has been exposed to Western culture through trade and industry, politics and commerce.  Sometimes these expats are more readily accepted as a foreign guest in their country. You are respectful of your host countries culture and traditions and are willing to emerge yourself into becoming part of the culture.

3. Moving to a country that is the polar opposite to what you are used to, your nationality is completely and utterly different e.g. Argentinian moving to China.  The official language is one that most people will battle to learn, so when you are standing in a queue you haven’t got a clue what is being said around you.  Your culture, traditions and habits are as vast as the Sahara Desert. You really have to acquire new skills and make major adaptations to survive.  As much as this type of expat experience can be rather a challeneg, it can have surprising advantages.  If you cannot understand the local language, it incentivises you to learn and forces you to be more adventurous and social in trying to fit in and develop a commonality with the local population.  Expats also tend to support each other more as everyone can feel the vast divide between locals and expats.  It allows groups of expats to formalize clubs that bind common interests and creates a social infrastructure of support.

There is another type of expat that we should include under number 3, this would be a person moving from e.g. China to America.  Commonly when a Westerner moves to a host country as an expat there are systems set up to support these people, e.g. compounds in which to live, social groups to belong to, etc.  However, this is not necessarily the case for non-Western expats when moving from their countries to e.g. America or the UK. These expats are not living in compounds or introduced to groups that are similar to themselves. They are often left to their own devices and need to find their own survival mechanisms. This type of expat experience could actually be the most difficult of all.

Which expat are you and are there more?

Denise is an Expat, Mom, Wife and Marketing Manager at  http://www.xpatulator.com/ a website that provides cost of living index information and calculates what you need to earn in a different location to compensate for cost of living, hardship, and exchange rate differences. The complete cost of living rank for all 300 locations for all 13 baskets is available here.

 

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The Seasoned Expat

An image of a juicy piece of sirloin comes to mind that is ever so lightly seasoned and seared lightly on the outside but still rare inside and so it should be for the seasoned expat, moving from one country to another should be like a trip to your favorite restaurant with the finest meal placed before you without having to be in the kitchen to cook it.
However, as any expat can tell you from the outset becoming a nomad takes a considerable amount of expertise, experience and well earned years on the road.  Our travels as proficient expats still needs much to be desired, but we have encountered those that have been down this path many times and for many years. They divulge information regarding their travels with the knowledge that us novices wish we had when we first set out on our adventures.
Generally our conversations with other expats goes along the following lines: How long have you been here for?  Eliciting remarks of “Oooohhhhh, shame you will get used to it, it takes a bit of time”.  Little smiles of understanding lilt other expats lips as we all know what the new recruits are going through and just how they are feeling.
Everyone takes their own time to settle and in their own way.
I know we would have made several different choices knowing what we know now from leaving our home to where we would stay on our arrival. Here are some of the questions that I have come across over the years, that can perhaps help those that endeavor to go on this voyage of expatriation.
I have broken this blog up into a series of questions that you need to ask yourself each step of the way, I will post each section of questions throughout the week.
Before you accept the assignment and are at home ask yourself the following:
1. Why do I want to become an expat, what is making me make this move?
Is this due to a career advancement, career move, or to move from a personal situation or country politics.  Make sure you are moving for the right reasons.
2. Will this be a good move for me and my family?
3. Will my marriage survive this move?
4. Will the family be happy?
5. Have I discussed all the details with them and what their needs are?
6. Have I included the children in the conversations?
7. Who is this going to benefit?
Initially, we discussed every detail about the move between ourselves, we went through the pros and cons, both financially and emotionally for the family.  Then included the children in our discussions and found a way for them to feel that they had made the decision, a smart move on my husband’s part. (If the children are too small then they cannot be part of this decision but if they understand how their lives will change then they should be included in the discussions).
Once each member of the family is in agreement with the move, then start asking the following questions:
Is the assignment an open one or a specific contract that will last for 2 or 3 years?
This will help answer questions the following questions -
1. Should I sell my home or rent it out?
2. Can the animals come with, what are the laws regarding this?
3. What relocation company is the best to use for international assignments?
4. What furniture, clothes, personal belongings should we take with us?
5. Where is the country and city we are moving to, i.e. on a map?
6. What do we know about this country?
7. What is the population, culture, religion, political situation and economy?
8. Is there a dress requirement e.g. having to wear an Abaya in Saudi Arabia, suite to work, etc?
9. What is the weather like?
10. What are the local people like?
11. How many hours will it take to get home (back to our own country) if we need to?
12. Is there a consulate for my country there?
13. How safe is it?
14. How many other expatriates live there and which countries do they come from?
Then consider your next plan of action, set dates for each of your objectives.
1. Selling / Renting house out
2. Finding a relocation / removal company
3. Finding an animal relocation company, if you are taking the animals with
4. Buying airline tickets
5. Settling any debts that may arise while you are away
6. Setting up a way to pay for any debts that may arise
7. Saying goodbye to family and friends
8. Selecting a family member or friend to deal with any business / banking issues that may arise

 

Answer these and I will post more for you to consider tomorrow.

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From Paris with Love

Paris the “City of Love”. Who has not wished to live in Paris once in their lives? There is a line in a Baz Luhrmann song called Sunscreen that goes “Live in New York City once, but leave before it makes you hard; live in Northern California once, but leave before it makes you soft.” I think this applies to Paris too, perhaps the saying should be “Live in Paris once but leave before it makes you too French,” unless you are French of course.

Paris has a magic about it that draws people. What is it about this city that is so special? Is it the notion that French people are undeniably romantic? Couples walking hand in hand along the Seine, sharing bread, wine and cheese in the gorgeous green parks, snuggling up on park benches in winter, whispering to each other in cafes! Or is it just that the French sound so unbelievably sexy when they speak?

I am not sure, but whatever it is I would love to live in Paris just once in my life. Paris has all the romantic attractions for me, I could imagine myself as an expat walking the streets, shopping at Galleries Lafeyette or Avenue Montaigne and Rue du Faubourg Saint-Honoré for the crème de la crème. Left bank or right bank you will have a ball.

Then there are the museums from The Louvre  (which could take your entire stay in Paris to get through), Musee D’Orsay and the Centre Pompidou.  The beautifully manicured parks will take your breath away and you could spend hours sunning yourself in deck chairs while life passes you by, from the elegant Luxembourg Gardens or Place des Vosges which is in the fashionable Marais quarter, and most importantly the Château de Versailles, which is opulent, fanciful and luxurious, the gardens cover more than 800 hectares – with woodland, ponds, fountains and statues. Picnicking is certainly one of the best Parisian past times that I have ever experienced.

Then there are the flea markets to browse, cafes and tearooms to experience, street markets, and last but not least the architectural wonders of the Eiffel Tower, The Opera House, Arc de Triomphe, Montmartre, Cité des Sciences et de l’Industrie, and Notre Dame Cathedral to name a few.  Oh Paris, you are calling.

This is certainly not where it stops, as living in Paris gives you access to the rest of the France and well, Paris may well take you a year or two to get through, and then there is the rest of the country to experience.
Certainly enough good reasons to want to be an Expat in Paris!

But what will Paris cost you if you decided to make a career move here? What are you earning and what would you need to earn to live it up in Paris and her night clubs?

Use Xpatulator.com’s SPPP calculator which calculates how much you need to earn in Paris to compensate for cost of living, hardship, and exchange rate differences, in order to have the same relative spending power and as a result have a similar standard of living as you have where you live now. If, for example, you live in New York and earn 100,000 USD, what would you need to earn in Paris to have the same spending power?
Salary Purchasing Power Parity

Applying the cost of living difference based on what will be paid from salary, together with the hardship difference, and arbitrage exchange rate, the Xpatulator calculation is as follows:
Home/Current location salary 100,000.00 US Dollar (USD )
+ Cost of living difference 4.9121% 4,912.08 US Dollar (USD )
+ Hardship Difference 0% 0.00 US Dollar (USD )
Total 104,912.08 US Dollar (USD )
x Exchange Rate 0.7186
Salary in Host/New location 75,389.82 Euro (EUR )
This means, based on all the above factors, that you would require a salary of 75,389.82 Euro (EUR ) in France, Paris to have the same standard of living as currently enjoyed in USA, New York NY on a salary of 100,000.00 US Dollar (USD ). This salary compensates for the overall cost of living difference of 4.9121%, the hardship difference of 0%, and the exchange rate.
Xpatulator.com

And to end off with Baz again:
Don’t feel guilty if you don’t know what you want to do with your life…..the most interesting people I know didn’t know at 22 what they wanted to do with their lives, some of the most interesting 40 year olds I know still don’t.

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As an Expat how do you communicate?

As expats we are far away from the ones we love (maybe distance does make the heart grow fonder), our communication systems of today however do make our loved ones within our grasp even across the miles.
Having left home 3 years ago to follow the road of the expat for the very first time, those first few weeks away from home were the worst of my life.  We had sold almost everything, the beautiful home that I had spent 3 years renovating, our investment flats, our weekend home at the dam with our speed boat, the new plot at a much bigger dam that was meant to be our retirement home, and bits and pieces of furniture that we were not taking with us.
Everything gone in less than 6 weeks, our lives sold up and never to be returned to.  We were not only becoming expats but we were moving our family out of a country that we felt had no future for them.  We packed up our container with the bits and pieces we felt we had to hold onto, said our final goodbyes to our family and friends at the airport and boarded the plane to our new lives.
Little did I realize how lonely those first few months were going to be, we were in the midst of summer vacation, everyone had taken their leave and gone home to visit their families and we were sitting in 45 – 50C degree heat.  The kids had no one to play with, other than themselves and their 30 odd year old mother, we had no car, no clue where to go and have fun, no initial internet connection, no household help, and heat that was suffocating.  To say we were not very happy campers would be under estimating  the situation.  Imagine a polar bear at the equator, and that is probably half of how awful the experience was for us.
Then suddenly we were given a lifeline, the internet was installed in our villa, we were like children in a candy store, the possibilities were endless. My laptop became my communication tool out to the world.  Skype, Facebook, gmail,(email, call phone and chat), msn, yahoo, (email, phone and chat), then what about the Blackberry (where once you have a BB account you can text anyone anywhere in the world for no cost), then there is just the normal texting where there is a cost via your cell phone (these are only a few ways of communicating), all of these became my friends.  I skyped my best friend every day to get a piece of normality into my daily life.   My friend who I had gone to gym with every day  and shared a coffee chat with afterwards was gone, and now once again we could chat with a coffee in hand across the miles. She was my godsend for those first few weeks.
Although my parents were not on Skype, we ensured that on our next visit home they were connected and up and running so that we could have visual contact with them whenever we could, which was also a godsend when my mother was diagnosed with cancer.  My ritual is to sms my mother and say, I am on skype tonight, 7pm your time 8pm mine…. Be there and we can have  a nice long chat.  All my sisters and friends are connected too and if we don’t get to skype we sure get to catch up via Facebook, be it with photos of what has been happening in their lives or merely a status update.  Little happens without me knowing about it the same day.
I sometimes think of those people who are on their adventures as expats in the Congo, or the Amazon or a remote island in the Pacific, where the internet has no connection, cell phones are foreign and satellite phones are the most likely way to communicate.  That connection to the outside world is of such importance to keep your sanity intact, it is interesting to imagine not having some form or communication around to have contact with your loved ones.
And let’s be clear, it is not only for expats but for people who find themselves living in another part of the country to those of their loved ones.  The East Coast USA versus the West Coast USA, North Australia vs South Australia, the miles are vast and the need for communication with loved ones will never fade.
So what is your form of communication across the miles??
Denise is an Expat, Mom, Wife and Marketing Manager at  http://www.xpatulator.com/ a website that provides cost of living index information and calculates what you need to earn in a different location to compensate for cost of living, hardship, and exchange rate differences. The complete cost of living rank for all 300 locations for all 13 baskets is available here.

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Before you go on an international assignment

The opportunity to get international experience can accelerate your career, but you should do your homework thoroughly before committing. With the shift in economic strength shifting eastward, the number of people taking international assignments is growing.
 

From a career perspective, the right kind of international experience is an advantage for top level executive positions. However the wrong kind of international experience can hinder your career. Are you going to be exposed to the latest technology/best practices? Is the organization held in high regard? Will the assignment look good on your CV a few years from now? Can you use this opportunity to make your mark?

An international assignment can put you in the spotlight or hide you away so that you are overlooked for future career moves. An assignment that was planned to last a year or two, could become long term, especially if you have school going children.
 

A successful international assignment requires several key skills.

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The truth about expat lifestyle in Greece

When Scottish expat John Malcolm was caught speeding in the southern Peloponnese, a Greek police officer strolled over to the car to book him and asked where he was born. “When I told him I was Scottish the officer said, ‘That means you’re as mad as we are,’ and waved me away, saying to his colleague, ‘He’s Scottish – don’t have anything to do with this one,’” Malcolm recalls. http://www.heraldscotland.com/life-style/travel-outdoors/the-truth-about-expat-lifestyle-in-greece-1.1079038 When Scottish expat John Malcolm was caught speeding in the southern Peloponnese, a Greek police officer strolled over to the car to book him and asked where he was born. “When I told him I was Scottish the officer said, ‘That means you’re as mad as we are,’ and waved me away, saying to his colleague, ‘He’s Scottish – don’t have anything to do with this one,’” Malcolm recalls. http://www.heraldscotland.com/life-style/travel-outdoors/the-truth-about-expat-lifestyle-in-greece-1.1079038

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Morocco, Rabat – Cost of Living

The economy of Morocco is considered a relatively liberal economy. The services sector accounts for just over half of GDP and industry, made up of mining, construction and manufacturing, is an additional quarter. The sectors who recorded the highest growth are the tourism, telecoms and textile sectors. Morocco , however, still depends on agriculture which accounts for only around 14% of GDP but employs 40-45% of the Moroccan population.

Rabat is the capital of the Kingdom of Morocco. Tourism and the presence of all foreign embassies in Morocco serve to make Rabat the second most important city in the country after the larger and more economically significant Casablanca.

Rabat has an overall cost of living index which equates it with low cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups.

The latest cost of living rank for each of the 13 Basket Groups is now available.

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International Cost Of Living Index Calculation

Cost of living is the cost of maintaining a specified standard of living, similar to a typical household budget. A Cost of living index is a numerical way of comparing cost of living, either over time, or by comparing different geographical locations.

When you relocate to another geographic location, the cost of everything you spend your salary on will either cost more or less. Some of the costs may be higher in the new location and some of the costs may be lower. The difference in cost of living is typically reported as a “cost of living index.

By selecting the appropriate costs that you will have to pay from your salary, you can use a tool such as www.xpatulator.com to calculate the cost of living difference between 2 locations. Xpatulator uses 13 basket groups, the result of extensive research of actual spending habits, to reflect a reality-based international expenditure pattern. The basket groups are weighted according to Expatriate expenditure norms.

When comparing the cost of living between 2 locations the difference in the aggregate cost of all the selected basket groups are examined in each location using the average reported price in each location for the same quantity of each item. Cost of living is the relative differential in the local cost of the basket groups and the ruling exchange rate between the 2 selected locations.

When comparing the cost of living between different locations the objective is to calculate the difference in the cost of living expressed as an index (e.g. dividing the cost of living in Location A by the cost of living in Location B may result in an index of 140).

The cost of living index indicates the difference in the cost of living between the 2 locations. In the above example the index of 140 means that Location A is 40% more expensive than Location B. This would mean that a person who moves from Location B to Location A would need to earn 40% more, to have the same standard of living in Location A as they have currently.

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