2. The Expat Explorer Survey
Commissioned by HSBC Bank International, Expat Explorer is the world’s largest
global survey of expats. Now in its third year, the survey continues to deliver insight
into expat life around the globe. Participation rates for the survey have continued to
increase year-on-year and in 2010 the survey has more respondents than ever, with
4,127 expats answering questions relating to their finances, quality of life, and even
what it’s like to raise children abroad.The survey continues to explore how expat life
differs from country to country, continent to continent.
2010 – even bigger than 2009:
Expat Economics
Expat Economics is the first of three reports to be produced from this year’s survey
and focuses on how the economic situation differs for expats from country to
country. The report draws upon research which represents the views of expats
surveyed in over 100 countries. Detailed country rankings are published for all
countries where more than 30 expats completed the survey. In total, there
are 25 countries featured in our rankings in this years survey.
The report looks at expat earnings levels, spending/saving/investing patterns and the
impact of the current global financial climate to paint an informed picture of expats’
economic situation around the world. A league table ranking the countries in terms
of key economic elements, income, disposable income and luxuries shows how
different countries compare to one another.
e Over 1,000 more expats sharing their experiences in this years survey
e Expats from a total of 39 industries/professions
e The addition of new countries in the Expat Explorer league tables,
including Bermuda and the Philippines
PAGE 2 I EXPAT EXPLORER SURVEY 2010
3. Contents
PAGE 3 I EXPAT EXPLORER SURVEY 2010
e Overall LeagueTable 4
e Expat findings 5
Wealth gap between the East and Mainland Europe continues to widen 5
BRIC Countries appear to be emerging expat hotspots 7
Career prospects / higher salaries lure expats to established centres
in the East 8
Expat Finances remain strong 9
Expats repatriate a considerable proportion of wealth 10
Expats and the credit crunch 11
e League tables by criteria 12
e Methodology 13
About Expat Explorer 13
About Expat Economics 13
e Country reports 15
United Kingdom 15
United States 17
Hong Kong 19
Singapore 21
United Arab Emirates 23
Australia 25
France 27
Spain 29
Germany 31
China 33
Russia 35
e Further information
Contact 37
5. PAGE 5 I EXPAT EXPLORER SURVEY 2010
Expat findings
Wealth gap between the East and Mainland Europe continues to widen
In the 2009 Expat Economics report it was clear that wealth was moving East,
with centres located throughout the Middle East and Asia home to a larger
percentage of high net-worth expat individuals. In 2010, the Middle East, Singapore
and Russia dominate the top quartile of the Wealth Hotspot leader board, while
expats in mainland Europe and South Africa are accumulating the least amount
of financial wealth.
Expats in Russia remain the wealthiest in the world, with 36% of expats in Russia
earning over $250,000. This number has actually increased over the past year – 30%
of expats based in the country earned over $250,000 in 2009. Both Singapore (32%)
and Bermuda (27%) also have a much higher proportion of expats with an annual
income of over $250,000, significantly higher than the overall average of 13%.
Mainland Europe, however, dominates the bottom five positions on the Wealth
Hotspot league table. Almost two-thirds (62%) of expats living in Spain earn below
$60,000, as do almost half of the expats living in France (47%), the Netherlands
(47%) and Germany (45%). This is much higher than the global average of
approximately one quarter (26%) of expats earning below this figure across the
world. In fact, the only other country to join mainland Europe in the bottom quartile
was South Africa, where around one-third (36%) of expats earn less than $60,000.
6. PAGE 6 I EXPAT EXPLORER SURVEY 2010
l Level 1 countries
l Level 2 countries
l Level 3 countries
l Level 4 countries
l Countries not
in economic
league table
WEALTHHOTSPOTSCORE
The world map above has been colour coded on the basis of Wealth Hotspot score of the countries in the economic league
table. Wealth Hotspot score is a combined metric of two elements, Income and Disposable income, and as such it intends
to provide a combined measure of earning power and cost of living of expats surveyed by country of residence. A higher
Wealth Hotspot score for a country would suggest that expats here are accumulating more wealth.
The Expat Wealth Hotspot score
Expat findings (continued)
7. PAGE 7 I EXPAT EXPLORER SURVEY 2010
Expat findings (continued)
BRIC Countries appear to be emerging expat hotspots
BRIC (Brazil*, Russia, India and China) countries fared well economically over the
past year and, as a result, have emerged as promising expat hotspots. Scores for
expats in these countries were higher than average when looking at a number of
economic factors including earnings, career development, improved economic
outlook and the ability to save.
While close to two-thirds (63%) of all expats surveyed said they are earning more
in their host country than in their country of origin, expats based in BRIC countries
scored much higher (Brazil, 69%; Russia, 82%; India, 70% and China, 75%). In
addition, with the exception of Brazil which fell slightly under the overall average,
expats in BRIC countries were also more likely to see increased career opportunities
within their host country (64% overall compared with; Russia, 82%; India and
China, 70%).
Although all BRIC based expats had a much sunnier economic outlook than the
world average, expats in Brazil were most positive, with over two-thirds (69%)
believing the economic situation had improved over the past year compared to a
22% worldwide average.
Expats also agreed that their disposable income levels were much higher since
relocating to a BRIC country, which has enabled them to both save and invest more.
Overall Sample
(100+countries)
61%
Brazil
66%
Russia
76%
India
66%
China
71%
38% 41%
55%
39%
44%
I am saving more I am investing more
A look at saving and investing habits
* Brazil sample size is 29 and therefore did not make it in to the overall league table.
Where do expats go for better financial opportunities?
Earning more
63%
69%
82%
70%
75%
More career opportunities
64% 62%
82%
70% 70%
Overall Sample (100+countries) Brazil Russia India China
8. Expat findings (continued)
PAGE 8 I EXPAT EXPLORER SURVEY 2010
While career prospects and higher salaries lure expats to established
centres in the East, retirees head to Europe andThailand
Those expats moving to the Wealth Hotspots are, not surprisingly, highly likely to
be moving for financial gain and career progression and are very likely to be working
in finance roles. With Asia and the Middle East also weathering the financial storm
particularly well compared to countries in the Eurozone, it is not a surprise that a
greater number of expats will have sought out these safer hotspots to progress their
careers and be rewarded with higher salaries.
77% percent of expats living in Bermuda work within the financial services sector,
followed by Saudi Arabia (35%) and Singapore (29%). Similarly, when questioned
about their motivation to move, expats in Saudi Arabia, Qatar and Russia decided to do
so predominantly for career and money prospects (85%, 83% and 76% respectively).
In stark contrast, the majority of those moving to mainland Europe are retirees
(Spain, 38%; France, 33%), with many choosing to move specifically to retire (25%
and 21% respectively). Thailand also ranks highly for those who choose to move
abroad to retire (21%). These countries, although not scoring well on the Wealth
Hotspot league table, ranked higher when it came to lifestyle; Thailand, France and
Spain topped Expat Explorer’s 2009 ‘quality of life’ poll (coming 3rd, 7th and 9th
respectively) and explain the countries’ retirement draw.
Career/money
prospects
Broaden my life
experience
Tired of the situation
in my country of origin
My current employer
sent me here
To be with my
partner/spouse
To retire abroad
To take care of family
in the host country
Other/Not stated
57%
55%
24%
18%
17%
5%
2%
3%
5%
2%
3%
Country of residence
% Mentioning career/money prospects as
the key reason for becoming an expat
Saudi Arabia 85%
TOP 5
Qatar 83%
Russia Federation 76%
Philippines 74%
United Arab Emirates 73%
Netherlands 42%
BOTTOM 5
Australia 42%
South Africa 40%
France 26%
Spain 18%
Why did you choose to become an expat?
The role of career/money in becoming an expat
9. Expat findings (continued)
PAGE 9 I EXPAT EXPLORER SURVEY 2010
Expat Finances remain strong
Finances amongst expats remain extremely positive, with the majority of those
surveyed saving more since moving abroad and very few accumulating more debt.
Two-thirds (66%) of expats have more disposable income in their new country and
those in the defined Wealth Hotspots are benefiting most from the increase in their
personal finances – 100% of expats in Bahrain agree they have more disposable
income than they did previously, with the numbers also extremely high in Bermuda
(96%), Qatar (92%) and Saudi Arabia (92%).
Although saving levels amongst expats as a whole have dropped since 2009, 61% of
expats are still saving more whilst working abroad and one in five (20%) are able to
pay off more debt than when they lived in their country of origin. Only 5% of expats
surveyed overall are now accumulating more debt.
Qatar boasts the highest number of expats being able to save more than in their
country of origin (92%) followed by Saudi Arabia (89%), Bahrain (88%) and Russia
(76%). However, higher salaries have resulted in these countries having to spend
more too. Expats in Bermuda (83%), Qatar (63%) and Russia (55%) are all spending
more in their host country compared to their country of origin.
Expats in the UK are the most likely to be accumulating more debt (11%), followed
by Australia (9%), despite the fact that many expats in these countries are also
able to save more than in their country of origin (53% and 51% respectively). Spain
(29%) and France (36%) have a much smaller percentage of expats saving more
than in their country of origin, but again this is likely to be due to the larger number
of retirees amongst this population.
Saving more
61%
Spending more
43%
Investing more
38%
Paying off
more debt
20%
Accumulating
more debt
5%5%
None of these
13%
How are expats allocating their wealth?
10. Expat findings (continued)
PAGE 10 I EXPAT EXPLORER SURVEY 2010
Expats repatriate a considerable proportion of wealth
Although expats tend to use a large variety of vehicles to save and invest, a large
proportion of wealth in longer term investments is repatriated, the most common
being property (30%), equity (22%) and bonds (11%), whilst general savings, banks/
building society savings and investment into company shares are predominantly
carried out within their host country. The use of offshore centres for saving and
investing appears to be under-utilised, with the most popular investment vehicles
for expats being managed funds (16%) and foreign exchange (12%).
Expats in the Middle East are the most likely to repatriate their property wealth, with
very few investing in property in their host country (49% of expats in Qatar invest in their
country of origin compared to 0% investing in their host country and in Saudi Arabia
60% invest in their country of origin whilst 0% invest in their host country).
Other country Offshore centre Host country Country of origin
Savings
(unspecified)
46%
27%
36%
8%
Bank/building
society
savings
account
33%
17%
26%
7%
Property
30%
11%
Equity
13%
13%
22%
9%
Managed
funds
13%
16%
19%19%
6%
Bank/building
society
fixed term
investment
12%
10%
12%12%
3%
Foreign
exchange
10%
12%
8%8%
4%
Shares in
company
13%
3%
10%10%
6%
Bonds
6%
7%
11%11%
3%
26%
How do expats allocate their money towards savings and investments?
11. PAGE 11 I EXPAT EXPLORER SURVEY 2010
Expats and the credit crunch
Almost half (47%) of the expats surveyed believed that the economy in their current
country has become worse since the start of 2009. Reflecting the turmoil experienced
in the Eurozone, a larger number of expats based in Spain (93%), Belgium (60%),
France (60%) and the United Kingdom (67%) also agreed with this statement.This was
in contrast to the economies that have escaped the worst of the economic downturn,
where a smaller number of expats living in the emerging nations of Russia (45%), India
(16%) and China (9%) were feeling less negative about their respective host economies.
Expats in these regions were also much more likely to view the economy as
having improved over the last 12 months (Russia, 27%; India, 50%; China, 61%) in
comparison to the overall survey average of around one quarter (22%). Just under
one-third of expats (31%) surveyed said that their economy had remained the same.
Of those expats who revealed that the economic situation in their country had
either deteriorated or remained the same, the vast majority (87%) did not believe
that they would be re-locating. This trend was generally higher in Middle East and
Asian countries such as Qatar (94%), Bahrain (97%) and China (92%) than European
countries such as Germany (84%), United Kingdom (78%) and Spain (83%).
This divide suggests that expats in the Middle East and Asia are more likely to
remain in their country of residence despite the fact their economic situation has
deteriorated. One explanation for this could be that countries such as Qatar, Bahrain
and the UAE tend to be Wealth Hotspots for expats and are in the top quartile when
it comes to income and disposable income. European countries such as Germany,
Spain, France and the Netherlands are in the bottom quartile which suggests
that expats may believe they are financially better off in their current country of
residence, despite the economic situation having worsened.
6%
7%
87%
it has
improved
22%
YES
it has become
worse 47%
YES
No, it has
remained the
same 31%
NO
l I am actively looking to
move home due to uncertain
economic conditions
l I still believe the economy is
too fragile for me to stay so I
am considering a move home
l There has been no impact
on my situation and I will
be staying
Expat findings (continued)
13. PAGE 13 I EXPAT EXPLORER SURVEY 2010
Methodology
About Expat Explorer
The Expat Explorer survey, now in its third year, is the largest global survey of
expats. Commissioned by HSBC Bank International and conducted by third party
research company GfK, 4,127 expats were questioned through an online survey from
26th April 2010 to the 7th June 2010, with expats from over 100 countries worldwide
taking part – making this unique survey the largest of its kind. Individuals from four
continents described the opportunities and challenges they experience living away
from home. The survey provides an insight into how expat life differs from country to
country, continent to continent and from an expats’ country of origin.
Please note the sampling technique used for the 2010 survey does not claim to give
a fully representative sample of expatriates. In addition, it differs substantially from
the sampling technique used in 2009. Therefore, comparisons of results year on year
are not statistically valid and have been made for illustrative purposes only.
A sample size of 30 or more respondents from each country was required for
inclusion in the league tables, in order to be considered robust and indicative of
the views and trends of the specific population. The league tables are based on a
series of interrelated factors (rather than a single factor or question) to ensure a fair
assessment of how individual countries rate across the full criteria. The responses of
those who responded “not applicable” or “refuse to say” have been excluded. Each
criterion is equally weighted to arrive at a score. The overall ranking is based on the
average score for a country across the criteria.
About Expat Economics
The Expat Economics league table ranks countries in terms of three main economic
factors: Income, Disposable Income and a measure of Luxury. All countries with a
sample size of 30 and above are included in the economic league table. Scores from
each factor are equally weighted to arrive at an Overall ‘Expat Economic’ Score and
Overall Rank.
Individual country rankings for the constituent elements (Income/Disposable Income/
Luxuries) are also available. Scores for Income and Disposable Income are averaged to
produce a ‘Wealth Accumulation Hotspot Score’ and Rank for each country.
‘Income Score’ is derived from proportion of expats surveyed in each country
who earn at least $200k per annum. ‘Disposable Income Score’ is derived from
proportion of expats surveyed in each country who have a disposable income of
$3000k+ per month compared to their country of origin. ‘Luxury score’ is derived
from ascertaining the proportion of respondents who have agreed with a number
of following statements:
e Live in a nicer / bigger property
e Have domestic helper / staff (e.g. cleaner/nanny)
e Own more than one property
e Own nicer and more cars
e Own a boat / yacht
e Go on more luxurious holidays
e Better healthcare
e Own a swimming pool
14. PAGE 14 I EXPAT EXPLORER SURVEY 2010
The criteria to generate the economics league table has been further refined from
2009 to ensure it is even more robust. The Luxury score is a response level score
meaning that the more items expats from a certain country tick, the bigger their
Luxury score as opposed to just being based on proportions of respondents who
have at least ticked one item.
Respondents answered income-related questions in one of ten currencies that they
use most often, however for ease of analysis and comparison, all foreign currencies
were converted into US dollars. As per the following table, currency conversions
were calculated based on conversion rates available as of 21st April 2010.
Currency
USD 1 USD
SGD 0.14 USD
JPY 93.25 USD
HKD 7.76 USD
GBP 0.65 USD
CNY 6.83 USD
CAD 0.99 USD
AUD 1.08 USD
AED 3.67 USD
Methodology (continued)
15. PAGE 15 I EXPAT EXPLORER SURVEY 2010
e Overall ranking: 20th out of 25
e Income: 11th out of 25
e Disposable income: 21st out of 25
e Luxuries: 25th out of 25
e Wealth Hotspot: 17th out of 25
UNITED KINGDOM
[Life here is]
Very good. Excellent
for first few years; now
getting tricky with global
economic crisis.
- Expat in the UK
Country reports
16. The current economic climate has a significant impact on UK-based expats
The economic climate over the past year has had a higher than average effect
on UK based expats, with two-thirds (67%) believing that the situation in the UK
deteriorated over the past year, compared to an overall survey average of 47%. As
a result, just over one in ten (11%) of those who said the economy hadn’t improved
are actively looking to move home due to the current economic climate.
With nearly half (46%) of UK based expats working in the financial sector, economic
instability has had a visible effect on their career prospects. Nearly one-third (29%)
of UK based expats said there have been reduced career opportunities and 31%
say they are having to monitor their expenditure more closely – something that has
become increasingly important due to the increased cost of living that UK based
expats are faced with. Over half of UK based expats agreed that the cost of living
was considerably higher than in their country of origin, spending more on most
items except healthcare.
The United Kingdom (UK) also scores lowest of all countries on the luxury scale.
Expats based in the UK scored lower than average on all luxury factors except
holidays, where half (51%) said they were able to go on more luxurious holidays
than in their country of origin, compared to an overall average of 46%.
PAGE 16 I EXPAT EXPLORER SURVEY 2010
United Kingdom (continued)
RANK: 11th
DISP. INCOME
SCORE
RANK: 21st RANK: 25th RANK: 17th
Sample size 420
Country of origin USA (22%); Australia (14%);
Canada (10%); France (10%);
India (6%); Other (38%)
Occupation Finance (46%); IT (8%);
Marketing (8%), Other (38%)
Age 18-34 (50%); 35-54 (45%);
55+ (6%)
Gender Male (57%); Female (43%)
Profile of UK based expats surveyed in 2010:
RANK: 20th
INCOME SCORE WEALTH HOTSPOT
SCORE
LUXURY SCORE
OVERALL SCORE
17. Country reports (continued)
PAGE 17 I EXPAT EXPLORER SURVEY 2010
e Overall ranking: 12th out of 25
e Income: 8th out of 25
e Disposable income: 14th out of 25
e Luxuries: 10th out of 25
e Wealth Hotspot: 12th out of 25
UNITED STATES OF AMERICA
Career enhancing
move; complex
administration;
complex finances.
- Expat in the USA
18. USA-based expats spending more on healthcare
Inflationary measures seem to be in check for those in the USA, with only 12%
thinking there had been an increase in the price of everyday items. However,
healthcare is one area that USA-based expats feel the pinch more so than any other
country – over two-thirds (68%) think they spend more on healthcare in the USA
than they did in their country of origin.
Over half (55%) of USA based expats think the economic situation has become
worse since last year, which although higher than average (47%), is not a huge
cause for concern amongst the expat community. Only 4% of expats based in the
USA are actively looking to leave and 90% think that their actual circumstances have
not been impacted.
Expats in the USA scored highly for earnings, with 29% earning over $200,000 and
two-thirds (64%) revealing that they now have more disposable income than in their
country of origin, yet only 55% save or invest more than they did before relocating,
lower than the overall figure of 60%. That said, expats based in the USA are still
keen investors with nearly 83% having at least one savings account as well as 42%
holding shares in their company (42%).
PAGE 18 I EXPAT EXPLORER SURVEY 2010
UnitedStatesofAmerica (continued)
RANK: 8th
DISP. INCOME
SCORE
RANK: 14th RANK: 10th RANK: 12th
Sample size 231
Country of origin UK (53%); Australia (6%);
Canada (5%); France (5%);
Other (31%)
Occupation Finance (27%); IT (10%);
Marketing (6%), Science/
Research (6%); Retired (6%),
Not stated (9%), Other (36%)
Age 18-34 (27%); 35-54 (50%);
55+ (23%)
Gender Male (71%); Female (29%)
Profile of USA based expats surveyed in 2010:
RANK: 12th
INCOME SCORE WEALTH HOTSPOT
SCORE
LUXURY SCORE
OVERALL SCORE
19. PAGE 19 I EXPAT EXPLORER SURVEY 2010
e Overall ranking: 9th out of 25
e Income: 4th out of 25
e Disposable income: 9th out of 25
e Luxuries: 20th out of 25
e Wealth Hotspot: 8th out of 25
HONG KONG
Expat life is great,
especially from a
financial point of view.
Also [the] opportunity
to see different cultures
and lifestyles.
- Expat in Hong Kong
Country reports (continued)
20. Expats in Hong Kong positive about the economy and benefiting from
favourable tax jurisdiction
Hong Kong based expats have remained relatively positive about their economic
situation with more than half of the respondents (53%) agreeing that it has actually
improved since last year, compared to a worldwide average of 22%. Expats in Hong
Kong are relatively high earners (35% earning over $200,000) and 75% agree that they
earn more since relocating. However, expats score relatively low in terms of luxuries,
featuring only 20th out of 25 for the league table, the lowest of all Asian countries.
Although expats in Hong Kong are spending considerably more than average on
items such as accommodation (60%) and food and drink (66%), only 7% of expats
based in Hong Kong believe they pay higher tax in their country of residence than in
their country of origin (28% on average).
Hong Kong based expats were the most likely to invest in their own company’s
shares compared to other nations (51%) as well as investing highly in equity (58%)
and foreign exchange (41%).
*Please note that although Hong Kong is referred to here as a country for the sake
of this report, Hong Kong is a territory of China.
PAGE 20 I EXPAT EXPLORER SURVEY 2010
Hong Kong (continued)
RANK: 4th
DISP. INCOME
SCORE
RANK: 9th RANK: 20th RANK: 8th
Sample size 247
Country of origin UK (49%); Australia (13%); USA
(11%); India (5%); Other (22%)
Occupation Finance (61%); Marketing (7%);
Other (32%)
Age 18-34 (30%); 35-54 (61%);
55+ (9%)
Gender Male (70%); Female (30%)
Profile of Hong Kong based expats surveyed
in 2010:
RANK: 9th
INCOME SCORE WEALTH HOTSPOT
SCORE
LUXURY SCORE
OVERALL SCORE
21. PAGE 21 I EXPAT EXPLORER SURVEY 2010
e Overall ranking: 4th out of 25
e Income: 1st out of 25
e Disposable income: 7th out of 25
e Luxuries: 13th out of 25
e Wealth Hotspot: 3rd out of 25
SINGAPORE
OK for [the] short
term 24 months to
accumulate wealth.
- Expat in Singapore
Country reports (continued)
22. Home to the largest proportion of high earners
Singapore acts as an attractive location for high earners, which is unsurprising as it
tops the economic league table on income score with nearly half (45%) of expats
earning over $200,000 per annum compared to the worldwide average of just 21%.
Expats based in Singapore benefit from lower tax than in their country of origin –
only 8% believe they spend more on tax than they did at home. Of those surveyed,
61% also think that they have more disposable income than when living in their
country of origin compared to an overall average of 42%.
However, with higher salaries and higher disposable incomes come higher costs; many
think they spend considerably more than in their country of origin on accommodation
(72% in Singapore vs. 46% overall) and food and drink (60% vs. 47%).
Expats in Singapore also believe they are already seeing signs of an improved
economy, with over half (51%) agreeing that the economic situation in Singapore
has improved since last year (compared to 22% overall). They are also much less
worried about having to monitor spending (8% in Singapore compared to an overall
average of 23%) or reduced career opportunities (15% vs. 20%).
PAGE 22 I EXPAT EXPLORER SURVEY 2010
Singapore (continued)
RANK: 1st
DISP. INCOME
SCORE
RANK: 7th RANK: 13th RANK: 3rd
Sample size 109
Country of origin UK (54%); Australia (11%); USA
(7%); India (6%); Other (22%)
Occupation Finance (29%); Construction/
Manufacturing/Utilities
(12%); Marketing (8%), Not
stated (7%), Transport (6%);
Unemployed (6%); Other (32%)
Age 18-34 (14%); 35-54 (73%);
55+ (14%)
Gender Male (78%); Female (22%)
Profile of Singapore based expats surveyed
in 2010:
RANK: 4th
INCOME SCORE WEALTH HOTSPOT
SCORE
LUXURY SCORE
OVERALL SCORE
23. Country reports (continued)
PAGE 23 I EXPAT EXPLORER SURVEY 2010
e Overall ranking: 4th out of 25
e Income: 8th out of 25
e Disposable income: 6th out of 25
e Luxuries: 4th out of 25
e Wealth Hotspot: 6th out of 25
UNITED ARAB EMIRATES
Lots of money, luxury
and better standard of
living with more savings
and investments.
- Expat in the UAE
24. UAE-based expats enjoy a luxurious lifestyle
Expats in the UAE ranked 4th overall when it came to luxury. Common perks for
expats living in the UAE include more cars (63% in UAE vs. 29% overall), more exotic
holidays (57% vs. 46%), nicer and larger properties (58% vs. 50%) and domestic help
(57% vs 37%). In addition, expats benefit from much lower tax costs, with almost
all (94%) of expats based in the UAE paying lower tax than in their country of origin.
Expats in the UAE, as well as earning higher salaries (the UAE ranks 6th on the Wealth
Hotspot chart) are saving more too, with 79% stating that they saved more since
becoming an expat compared to the worldwide average of 61%.
Despite the perks and improved lifestyle, the past year has been difficult
economically for expats based in the UAE, with over three quarters (77%) indicating
that the economic situation has deteriorated over the past year. This has directly
impacted a quarter of expats who think there are reduced career opportunities
in the UAE, with one in ten of those who thought the economy hadn’t improved,
actively looking to return home. However, the majority of expats in the UAE remain
optimistic; 81% have said that they have not been directly impacted and are
therefore not actively looking to return home.
PAGE 24 I EXPAT EXPLORER SURVEY 2010
United Arab Emirates (continued)
RANK: 8th
DISP. INCOME
SCORE
RANK: 6th RANK: 4th RANK: 6th
Sample size 334
Country of origin UK (50%); India (10%); Australia
(7%); Canada (5%); Other 28%)
Occupation Finance (26%); Construction/
Manufacturing/Utilities (12%);
Management (9%), Education
(6%); Other (47%)
Age 18-34 (20%); 35-54 (64%); 55+
(15%)
Gender Male (74%); Female (26%)
Profile of UAE based expats surveyed in 2010:
RANK: 4th
INCOME SCORE WEALTH HOTSPOT
SCORE
LUXURY SCORE
OVERALL SCORE
25. PAGE 25 I EXPAT EXPLORER SURVEY 2010
e Overall ranking: 16th out of 25
e Income: 14th out of 25
e Disposable income: 19th out of 25
e Luxuries: 10th out of 25
e Wealth Hotspot: 16th out of 25
AUSTRALIA
It’s been a good move,
though hard work
initially and financially
we are in a lot more debt.
- Expat in Australia
Country reports (continued)
26. Expats in Australia are seeing an improvement in the economic situation but are
also showing concerns on the rising costs of living
Although 41% of expats in Australia are seeing an improvement in the economic
situation (compared to 22% overall), one quarter (25%) think there has been an
increase in the price of everyday items, showing that inflationary worries are at the
forefront of expats’ minds.
Although the majority agree that the price of everyday items is still largely in line with what
they would cost in their country of origin, healthcare (50% Australia vs. 40% overall) and
tax (40% vs. 28%) are two areas that are more expensive in Australia than in their country
of origin. Even with these increased costs, almost two-thirds (63%) of Australians still
agree that they have more disposable income than they did before moving.
While Australia ranks in 16th place on the economics league table, it scores highly
in other aspects, such as quality of life (Australia ranked 2nd in Expat Explorer’s
2009 quality of life survey) and luxuries. 63% of Australia-based expats are able to
live in a nicer or bigger property since relocating, nearly a quarter have a swimming
pool (24%) and nearly half (49%) own their own property.Those moving to Australia
are predominantly from the UK (70%) and the country makes a popular retirement
destination, with retirees accounting for one in ten expats.
PAGE 26 I EXPAT EXPLORER SURVEY 2010
Australia (continued)
RANK: 14th
DISP. INCOME
SCORE
RANK: 19th RANK: 10th RANK: 16th
Sample size 115
Country of origin UK (70%); South Africa (5%);
Other (25%)
Occupation Finance (17%); IT (10%);
Retired (10%); Management
(8%); Education (6%); Not
stated (8%), Other (41%)
Age 18-34 (24%); 35-54 (47%);
55+ (29%)
Gender Male (66%); Female (34%)
Profile of Australia based expats surveyed
in 2010:
RANK: 16th
INCOME SCORE WEALTH HOTSPOT
SCORE
LUXURY SCORE
OVERALL SCORE
27. PAGE 27 I EXPAT EXPLORER SURVEY 2010
e Overall ranking: 23rd out of 25
e Income: 22nd out of 25
e Disposable income: 24th out of 25
e Luxuries: 16th out of 25
e Wealth Hotspot: 24th out of 25
FRANCE
I have a better quality
of life but, due to
the present rate of
exchange regarding the
euro and the pound, it
has caused hassle [with]
regards [to] finance
which I didn’t
have before.
- Expat in France
Country reports (continued)
28. France is a popular destination among expat retirees
Although France appears in the bottom quartile on the Wealth Hotspot league table
(24th) and earnings fall well below average (47% of expats earn below $60,000
compared to an overall average of 26%), one-third (33%) of expats in France are
retired and nearly half (48%) are over 55 years old, which accounts for its low
scoring within the Expat Economics report.
The economic situation in France has been seen as relatively unstable by the
majority of expats based there. Three out of every five expats in France think that
the economic situation has deteriorated since last year and with associated currency
fluctuations, it is not surprising to see that over one-third (42%) indicated that they
have seen an increase in the price of everyday items. Expats based in France also
believe tax costs are considerably higher than in their home nation (36% vs 28%
overall). Due to the high number of retirees, 90% of French expats remain relatively
unscathed by this economic uncertainty and are not looking to move home. They
are also less likely than those in other countries to have to monitor their expenditure
(21% in France vs. 23% overall) or have to worry about reduced career opportunities
(9% in France vs. 20% overall).
PAGE 28 I EXPAT EXPLORER SURVEY 2010
France (continued)
RANK: 22nd
DISP. INCOME
SCORE
RANK: 24th RANK: 16th RANK: 16th
Sample size 222
Country of origin UK (53%); USA (25%);
Other (22%)
Occupation Retired (33%); Finance (9%);
Education (7%); Travel (6%);
IT (6%); Unemployed (6%);
Other (33%)
Age 18-34 (15%); 35-54 (38%);
55+ (48%)
Gender Male (47%); Female (53%)
Profile of France based expats surveyed
in 2010:
RANK: 23rd
INCOME SCORE WEALTH HOTSPOT
SCORE
LUXURY SCORE
OVERALL SCORE
29. PAGE 29 I EXPAT EXPLORER SURVEY 2010
e Overall ranking: 22nd out of 25
e Income: 24th out of 25
e Disposable income: 23rd out of 25
e Luxuries: 13th out of 25
e Wealth Hotspot: 23rd out of 25
SPAIN
Since the crisis started
in the UK and Spain, life
has become very difficult
so will return to UK in
September until we can
afford to return to Spain.
- Expat in Spain
Country reports (continued)
30. Feeling the economic heat more than any other nation
The vast majority of expats in Spain (93%) believe the economic situation has
become worse over the past year, but in spite of this, 83% of expats who thought
the economy hadn’t improved said they will not be looking to leave the country.
Similar to France, retirees account for the largest expat group (38%), which again
provides an explanation for Spain’s low score on the Wealth Hotspot league
table (23rd).
Whilst not scoring highly on all luxury criteria, the fact that many expats in Spain are
likely to have a swimming pool, own a nicer or bigger property and are more likely
to run their own business, accounts for the fact they have ranked 13th in the luxury
scales – higher than any other European country.
To cope with the economic fallout, 41% of Spain based expats have had to monitor
their expenditure more closely (much higher than the overall average of 23%), while
over a quarter (28%) have seen an increase in the cost of everyday items. Matched
with the fact that nearly one-third (29%) of Spanish expats admit that they have less
disposable income than in their country of origin, it is clear to see how expats in
Spain are feeling the pinch.
Expats in Spain are also the least likely to invest in company shares (14%), preferring
instead to invest in property and savings accounts within their host country –
one-third (35%) of expats based in Spain use these investment options.
PAGE 30 I EXPAT EXPLORER SURVEY 2010
Spain (continued)
RANK: 24th
DISP. INCOME
SCORE
RANK: 23rd RANK: 13th RANK: 23rd
Sample size 130
Country of origin UK (71%); USA (8%);
Other (21%)
Occupation Retired (38%); Education (9%);
Unemployed (9%); Finance
(8%); Media (6%); Other (30%)
Age 18-34 (14%); 35-54 (39%);
55+ (49%)
Gender Male (52%); Female (48%)
Profile of Spain based expats surveyed
in 2010:
RANK: 22nd
INCOME SCORE WEALTH HOTSPOT
SCORE
LUXURY SCORE
OVERALL SCORE
31. PAGE 31 I EXPAT EXPLORER SURVEY 2010
e Overall ranking: 24th out of 25
e Income: 21st out of 25
e Disposable income: 22nd out of 25
e Luxuries: 24th out of 25
e Wealth Hotspot: 22nd out of 25
GERMANY
Sacrifices have been
made (particularly
financially) but I love
living in another culture
and learning about another
part of the world rather
than just being a tourist.
- Expat in Germany
Country reports (continued)
32. An unattractive location for those looking for career progression
Scoring 24th out of the 25 countries analysed in the Expat Economic league
table and 22nd in the Wealth Hotspot league table, Germany is perhaps not an
expat location for those seeking career prospects and monetary gain. The highest
proportions of expats are either in education (15%), or a homemaker (12%).
Just over half (53%) of expats based in Germany believe that the economic situation
in the country has become worse since 2009 and although 50% of expats moved
to the country for increased career prospects, over one-quarter (26%) have seen
reduced career opportunities over the past year. As a result, 8% of expats in
Germany who thought the economy hadn’t improved are actively looking to return to
their country of origin, whilst a further 8% of that group say that with the economy
being so fragile they are also considering a move home.
More positively, even though many expats based in Germany have lower levels
of disposable income than they did in their country of origin (only 23% of expats
in Germany agree to having more or much more disposable income since moving
against an overall average of 42%), only 18% are having to monitor their everyday
spending and only 11% claim to have seen a rise in the price of everyday items. Tax
and public transport are two areas where expats in Germany feel the pinch more
than in their home countries (public transport 42% in Germany vs. 27% overall and
tax 52% vs. 28%).
PAGE 32 I EXPAT EXPLORER SURVEY 2010
Germany (continued)
RANK: 21st
DISP. INCOME
SCORE
RANK: 22nd RANK: 24th RANK: 22nd
Sample size 110
Country of origin USA (34%); UK (29%);
Australia (6%); Other (31%)
Occupation Education (15%); Unemployed
(12%); Not stated (9%); IT
(8%); Retired (8%); Science/
Research (6%); Other (42%)
Age 18-34 (28%); 35-54 (50%);
55+ (22%)
Gender Male (45%); Female (55%)
Profile of Germany based expats surveyed
in 2010:
RANK: 24th
INCOME SCORE WEALTH HOTSPOT
SCORE
LUXURY SCORE
OVERALL SCORE
33. PAGE 33 I EXPAT EXPLORER SURVEY 2010
e Overall ranking: 10th out of 25
e Income: 12th out of 25
e Disposable income: 8th out of 25
e Luxuries: 20th out of 25
e Wealth Hotspot: 9th out of 25
CHINA
Better work-life
balance, higher income,
more stable economic
situation, more family
and couple time, a
global perspective and
experiences shared
as a family.
- Expat in China
Country reports (continued)
34. Inflation is on the rise, even though the cost of living remains in check
Expats in China are confident in the country’s economy and almost two-thirds (61%)
agree that they have seen an improvement in the economic situation since last year.
Although in the second quartile on the Wealth Hotspot league table, China still has
a relatively wealthy expat base, with one quarter (26%) earning over $200,000. The
country is a big draw to those looking for increased career opportunities or financial
gain and over two-thirds (68%) of expats cited this as their main reason for moving
to China. Indeed, the country has proven to be an expat hotspot for those looking
for higher income and career prospects; three-quarters (75%) of those who move
to China have seen an increase in their income levels and 70% agree there are
increased career opportunities in their new host country. Overall, the country is very
popular for those working in the banking and finance world, which accounts for over
one-third of the expat community (36%).
Although one-third of China-based expats have seen an increase in the cost of
everyday items, the actual cost of living is very low compared to other expat
countries; over two-thirds of expats agreed that most everyday items in China were
cheaper than in their country of origin. However, luxuries did not score very highly for
expats based there; property ownership and owning nicer or more cars than in their
home nation scored particularly low with only 5% owning a nicer car or more cars
and 16% owning their own property.
Expats within China are also able to save more since relocating. 71% save more
and 44% invest more than they did when living in their country of origin. Savings
accounts are the most popular investment vehicle amongst China based expats
(86% have at least one) alongside equities (55%) and foreign exchange (38%).
PAGE 34 I EXPAT EXPLORER SURVEY 2010
China (continued)
RANK: 12th
DISP. INCOME
SCORE
RANK: 8th RANK: 20th RANK: 9th
Sample size 101
Country of origin UK (30%); Hong Kong (29%);
USA (11%); Canada (7%);
Australia (6%); Other (17%)
Occupation Finance (36%); Education
(10%); Management (9%);
Construction/Manufacturing/
Utilities (9%); Other (36%)
Age 18-34 (15%); 35-54 (74%);
55+ (12%)
Gender Male (73%); Female (27%)
Profile of China based expats surveyed
in 2010:
RANK: 10th
INCOME SCORE WEALTH HOTSPOT
SCORE
LUXURY SCORE
OVERALL SCORE
35. PAGE 35 I EXPAT EXPLORER SURVEY 2010
e Overall ranking: 1st out of 25
e Income: 2nd out of 25
e Disposable income: 1st out of 25
e Luxuries: 15th out of 25
e Wealth Hotspot: 1st out of 25
RUSSIA
Fantastic broadening
experience with
huge potential
financial benefits.
- Expat in Russia
Country reports (continued)
36. Russia retains grip on Wealth Hotspot
Russia, for the second year in a row, remains at the top of the Wealth Hotspot
league table. Over one-third (36%) of expats in Russia earn over $250,000 per
annum, over three-quarters (85%) say they have more disposable income since
moving and over three-quarters (76%) are able to save more since relocating. The
country is seen as a good choice for those looking for financial gain or to progress
their career, with 76% of expats moving there for this reason and just under a
quarter (24%) of expats moving from the finance and banking industry.
Increased costs mean that those based in Russia are likely to face higher prices for
everyday items than in their home nation. 76% claim that food and drink is more
expensive in Russia when compared to their home nation and over half (55%) agree
that housing is also more expensive. However, public transport is one area where
expats make a saving when compared to their home nation; only 18% see spending
on public transport as more expensive, compared to an overall average of 27%.
Although Russia only scores 15th on the luxury scale, expats based there are still
more likely to have domestic help (48% vs. 37%), own more than one property
(27% vs. 18%) take more exotic holidays (67% vs. 46%) and own their own
business (21% vs. 14%) than in their country of origin.
However, the economic situation in Russia does prove to be a worry for some
expats. 45% of expats based in Russia agree that the economic situation within
the country has become worse over the past year, even though only 4% of those
who thought the economy hadn’t improved are actively looking to move home. In
addition, although all expats in all BRIC countries agreed that the economic situation
within their country had improved over the past year, those in Russia were least
likely to agree with this statement (27%).
PAGE 36 I EXPAT EXPLORER SURVEY 2010
Russia (continued)
RANK: 2nd
DISP. INCOME
SCORE
RANK: 1st RANK: 15th RANK: 1st
Sample size 33
Country of origin UK (42%); Netherlands (12%);
USA (6%); Canada (6%);
France (6%); Other (%)
Occupation Finance (24%); Construction/
Manufacturing/Utilities
(15%); Not stated (12%);
Marketing (9%); IT (6%);
Architecture/ Engineering (6%);
Telecommunications (6%);
Other (22%)
Age 18-34 (21%); 35-54 (57%);
55+ (21%)
Gender Male (82%); Female (18%)
Profile of Russia based expats surveyed
in 2010:
RANK: 1st
INCOME SCORE WEALTH HOTSPOT
SCORE
LUXURY SCORE
OVERALL SCORE
37. Further information
Contact:
Karen Butcher
Account Manager
Hill & Knowlton
Phone: +44 (0) 207 413 3181
Email: karen.butcher@hillandknowlton.com
Nick Woods
Senior Account Executive
Hill & Knowlton
Phone: +44 (0) 207 413 3515
Email: nick.woods@hillandknowlton.com
Web: www.offshore.hsbc.com/expatexplorer
Blog: www.expatexplorer.blogspot.com
Twitter: www.twitter.com/expatexplorer
PAGE 37 I EXPAT EXPLORER SURVEY 2010
