HSBC Expat Survey 2010

HSBC Bank International
The Expat Explorer Survey 2010
Report one: Expat Economics

PAGE 2 I EXPAT EXPLORER SURVEY 2010
The Expat Explorer Survey Expat Economics

Commissioned by HSBC Bank International, Expat Explorer is the world’s largest 'ZRCV'EQPQOKEUKUVJGƂTUVQHVJTGGTGRQTVUVQDGRTQFWEGFHTQOVJKU[GCToUUWTXG[
global survey of expats. Now in its third year, the survey continues to deliver insight and focuses on how the economic situation differs for expats from country to
into expat life around the globe. Participation rates for the survey have continued to country. The report draws upon research which represents the views of expats
increase year-on-year and in 2010 the survey has more respondents than ever, with surveyed in over 100 countries. Detailed country rankings are published for all
GZRCVUCPUYGTKPISWGUVKQPUTGNCVKPIVQVJGKTƂPCPEGUSWCNKV[QHNKHGCPFGXGP countries where more than 30 expats completed the survey. In total, there
what it’s like to raise children abroad. The survey continues to explore how expat life are 25 countries featured in our rankings in this years survey.
differs from country to country, continent to continent.
The report looks at expat earnings levels, spending/saving/investing patterns and the
KORCEVQHVJGEWTTGPVINQDCNƂPCPEKCNENKOCVGVQRCKPVCPKPHQTOGFRKEVWTGQHGZRCVUo
economic situation around the world. A league table ranking the countries in terms
2010 – even bigger than 2009:
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
Contents
e Overall League Table 4 e Country reports 15
United Kingdom 15
e 'ZRCVƂPFKPIU
United States 17
Wealth gap between the East and Mainland Europe continues to widen 5 Hong Kong 19
BRIC Countries appear to be emerging expat hotspots 7 Singapore 21
Career prospects / higher salaries lure expats to established centres United Arab Emirates 23
in the East 8
Australia 25
Expat Finances remain strong 9
France 27
Expats repatriate a considerable proportion of wealth 10
Spain 29
Expats and the credit crunch 11
Germany 31
China 33
e League tables by criteria 12
Russia 35
e Methodology 13 e Further information
About Expat Explorer 13 Contact 37

About Expat Economics 13
Overall league table

Overall Wealth Hotspot Income Disposable income Luxuries
score rank score rank score rank score rank score rank
Russia Federation 0.53 1 0.58 1 0.43 2 0.72 1 0.44 15
Saudi Arabia 0.50 2 0.49 3 0.36 4 0.62 2 0.51 5
Bahrain 0.49 3 0.44 7 0.26 13 0.62 2 0.59 1
United Arab Emirates 0.48 4 0.45 6 0.31 8 0.59 6 0.53 4
Singapore 0.48 4 0.49 3 0.49 1 0.49 7 0.45 13
Bermuda 0.48 4 0.50 2 0.40 3 0.60 5 0.43 16
Qatar 0.47 7 0.46 5 0.30 10 0.62 2 0.50 8
Philippines 0.39 8 0.33 10 0.33 6 0.32 12 0.51 5
Hong Kong 0.38 9 0.39 8 0.36 4 0.41 9 0.38 20
China 0.36 10 0.35 9 0.27 12 0.42 8 0.38 20
Malaysia 0.36 10 0.29 13 0.24 14 0.34 11 0.51 5
United States 0.35 12 0.30 12 0.31 8 0.28 14 0.46 10
Thailand 0.35 12 0.25 14 0.15 19 0.35 10 0.55 3
Switzerland 0.34 14 0.32 11 0.32 7 0.32 12 0.37 22
Mexico 0.32 15 0.25 14 0.24 14 0.26 16 0.47 9
Australia 0.31 16 0.24 16 0.24 14 0.23 19 0.46 10
South Africa 0.31 16 0.18 20 0.07 22 0.28 14 0.58 2
Canada 0.30 18 0.22 19 0.19 18 0.24 18 0.46 10
India 0.28 19 0.23 17 0.20 17 0.26 16 0.39 19
United Kingdom 0.25 20 0.23 17 0.29 11 0.16 21 0.30 25
Belgium 0.23 21 0.15 21 0.09 20 0.21 20 0.40 18
Spain 0.20 22 0.08 23 0.06 24 0.09 23 0.45 13
France 0.19 23 0.07 24 0.07 22 0.07 24 0.43 16
Germany 0.18 24 0.11 22 0.08 21 0.13 22 0.32 24
Netherlands 0.15 25 0.04 25 0.04 25 0.04 25 0.36 23
The top Quartile The bottom Quartile
Refer to methodology on page 13 for more details.

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
QHƂPCPEKCNYGCNVJ
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
KPEQOGQHQXGTUKIPKƂECPVN[JKIJGTVJCPVJGQXGTCNNCXGTCIGQH
/CKPNCPF'WTQRGJQYGXGTFQOKPCVGUVJGDQVVQOƂXGRQUKVKQPUQPVJG9GCNVJ
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
CRRTQZKOCVGN[QPGSWCTVGT
QHGZRCVUGCTPKPIDGNQYVJKUƂIWTGCETQUUVJG
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.
Expat findings (continued)

The Expat Wealth Hotspot score
O Level 1 countries
O Level 2 countries
WEALTH HOTSPOT SCORE

O Level 3 countries
O Level 4 countries
O Countries not
in economic
league table
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.

BRIC Countries appear to be emerging expat hotspots A look at saving and investing habits
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. 76%
71%
61% 66% 66%

While close to two-thirds (63%) of all expats surveyed said they are earning more 44%
38% 41% 39%
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, Overall Sample Brazil Russia India China
(100+countries)
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 I am saving more I am investing more
China, 70%).
9JGTGFQGZRCVUIQHQTDGVVGTƂPCPEKCNQRRQTVWPKVKGU!
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 82% 82%

relocating to a BRIC country, which has enabled them to both save and invest more. 63%
69% 70%
64% 62%
70% 70%
Earning more More career opportunities
* Brazil sample size is 29 and therefore did not make it in to the overall league table.
Overall Sample (100+countries) Brazil Russia India China

While career prospects and higher salaries lure expats to established 9J[FKF[QWEJQQUGVQDGEQOGCPGZRCV!
centres in the East, retirees head to Europe and Thailand
Career/money
prospects

Those expats moving to the Wealth Hotspots are, not surprisingly, highly likely to
Broaden my life

DGOQXKPIHQTƂPCPEKCNICKPCPFECTGGTRTQITGUUKQPCPFCTGXGT[NKMGN[VQDGYQTMKPI experience
KPƂPCPEGTQNGU9KVJ#UKCCPFVJG/KFFNG'CUVCNUQYGCVJGTKPIVJGƂPCPEKCNUVQTO Tired of the situation

in my country of origin
24%
particularly well compared to countries in the Eurozone, it is not a surprise that a My current employer
sent me here
18%
greater number of expats will have sought out these safer hotspots to progress their
To be with my
careers and be rewarded with higher salaries. partner/spouse
17%
To retire abroad
RGTEGPVQHGZRCVUNKXKPIKP$GTOWFCYQTMYKVJKPVJGƂPCPEKCNUGTXKEGUUGEVQT
followed by Saudi Arabia (35%) and Singapore (29%). Similarly, when questioned To take care of family
2%
in the host country
about their motivation to move, expats in Saudi Arabia, Qatar and Russia decided to do
Other/Not stated 3%
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 The role of career/money in becoming an expat
5RCKP(TCPEGYKVJOCP[EJQQUKPIVQOQXGURGEKƂECNN[VQTGVKTG

% Mentioning career/money prospects as
and 21% respectively). Thailand also ranks highly for those who choose to move Country of residence the key reason for becoming an expat
abroad to retire (21%). These countries, although not scoring well on the Wealth Saudi Arabia 85%
Hotspot league table, ranked higher when it came to lifestyle; Thailand, France and Qatar 83%
Spain topped Expat Explorer’s 2009 ‘quality of life’ poll (coming 3rd, 7th and 9th Russia Federation 76% TOP 5
Philippines 74%
respectively) and explain the countries’ retirement draw.
United Arab Emirates 73%
Netherlands 42%
Australia 42%
South Africa 40% BOTTOM 5
France 26%
Spain 18%

Expat Finances remain strong *QYCTGGZRCVUCNNQECVKPIVJGKTYGCNVJ!
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
VJQUGKPVJGFGƂPGF9GCNVJ*QVURQVUCTGDGPGƂVKPIOQUVHTQOVJGKPETGCUGKPVJGKT
61%
RGTUQPCNƂPCPEGUsQHGZRCVUKP$CJTCKPCITGGVJG[JCXGOQTGFKURQUCDNG
income than they did previously, with the numbers also extremely high in Bermuda 43%
38%
(96%), Qatar (92%) and Saudi Arabia (92%). 20%
13%

Although saving levels amongst expats as a whole have dropped since 2009, 61% of
Saving more Spending more Investing more Paying off Accumulating None of these
GZRCVUCTGUVKNNUCXKPIOQTGYJKNUVYQTMKPICDTQCFCPFQPGKPƂXG
CTGCDNGVQ more debt more debt
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.

Expats repatriate a considerable proportion of wealth *QYFQGZRCVUCNNQECVGVJGKTOQPG[VQYCTFUUCXKPIUCPFKPXGUVOGPVU!
Although expats tend to use a large variety of vehicles to save and invest, a large
8%
proportion of wealth in longer term investments is repatriated, the most common
27%
being property (30%), equity (22%) and bonds (11%), whilst general savings, banks/
building society savings and investment into company shares are predominantly 7%
carried out within their host country. The use of offshore centres for saving and 17%
11%
46%
investing appears to be under-utilised, with the most popular investment vehicles 9% 6%
for expats being managed funds (16%) and foreign exchange (12%). 33% 26% 13% 16%
3%
4% 6%
13% 10%
13% 12% 3% 3%
Expats in the Middle East are the most likely to repatriate their property wealth, with 36% 12% 13%
7%
26% 30% 10% 6%
22% 19%
very few investing in property in their host country (49% of expats in Qatar invest in their 12% 8% 10% 11%
country of origin compared to 0% investing in their host country and in Saudi Arabia Savings Bank/building Property Equity Managed Bank/building Foreign Shares in Bonds

WPURGEKƂGF society funds society exchange company
60% invest in their country of origin whilst 0% invest in their host country). savings ƂZGFVGTO
account investment
Other country Offshore centre Host country Country of origin


Expats and the credit crunch
Almost half (47%) of the expats surveyed believed that the economy in their current YES
it has
EQWPVT[JCUDGEQOGYQTUGUKPEGVJGUVCTVQH4GƃGEVKPIVJGVWTOQKNGZRGTKGPEGF improved
in the Eurozone, a larger number of expats based in Spain (93%), Belgium (60%), 22%
NO
France (60%) and the United Kingdom (67%) also agreed with this statement. This was
No, it has
in contrast to the economies that have escaped the worst of the economic downturn, remained the
where a smaller number of expats living in the emerging nations of Russia (45%), India same 31%
(16%) and China (9%) were feeling less negative about their respective host economies.
YES
it has become
Expats in these regions were also much more likely to view the economy as worse 47%
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 87%
O I am actively looking to
Asian countries such as Qatar (94%), Bahrain (97%) and China (92%) than European
move home due to uncertain
countries such as Germany (84%), United Kingdom (78%) and Spain (83%). economic conditions
O I still believe the economy is
This divide suggests that expats in the Middle East and Asia are more likely to too fragile for me to stay so I
remain in their country of residence despite the fact their economic situation has am considering a move home
6%
deteriorated. One explanation for this could be that countries such as Qatar, Bahrain O There has been no impact
7% on my situation and I will
and the UAE tend to be Wealth Hotspots for expats and are in the top quartile when
be staying
it comes to income and disposable income. European countries such as Germany,
Spain, France and the Netherlands are in the bottom quartile which suggests
VJCVGZRCVUOC[DGNKGXGVJG[CTGƂPCPEKCNN[DGVVGTQHHKPVJGKTEWTTGPVEQWPVT[QH
residence, despite the economic situation having worsened.
Regional League Tables

Overall Wealth Hotspot Income Disposable income Luxuries
Country SCORE RANK SCORE RANK SCORE RANK SCORE RANK SCORE RANK
Bermuda 0.48 1 (4) 0.50 (2) 0.40 (3) 0.60 (5) 0.43 (16)
AMERICAS
United States 0.35 2 (12) 0.30 (12) 0.31 (8) 0.28 (14) 0.46 (10)
THE
Mexico 0.32 3 (15) 0.25 (14) 0.24 (14) 0.26 (16) 0.47 (9)
Canada 0.30 4 (18) 0.22 (19) 0.19 (18) 0.24 (18) 0.46 (10)
Russia Federation 0.53 1 (1) 0.58 (1) 0.43 (2) 0.72 (1) 0.44 (15)
Singapore 0.48 2 (4) 0.49 (3) 0.49 (1) 0.49 (7) 0.45 (13)
Philippines 0.39 3 (8) 0.33 (10) 0.33 (6) 0.32 (12) 0.51 (5)
ASIA PACIFIC
Hong Kong 0.38 4 (9) 0.39 (8) 0.36 (4) 0.41 (9) 0.38 (20)
China 0.36 5 (10) 0.35 (9) 0.27 (12) 0.42 (8) 0.38 (20)
Malaysia 0.36 5 (10) 0.29 (13) 0.24 (14) 0.34 (11) 0.51 (5)
Thailand 0.35 7 (12) 0.25 (14) 0.15 (19) 0.35 (10) 0.55 (3)
Australia 0.31 8 (16) 0.24 (16) 0.24 (14) 0.23 (19) 0.46 (10)
India 0.28 9 (19) 0.23 (17) 0.20 (17) 0.26 (16) 0.39 (19)
Switzerland 0.34 1 (14) 0.32 (11) 0.32 (7) 0.32 (12) 0.37 (22)
United Kingdom 0.25 2 (20) 0.23 (17) 0.29 (11) 0.16 (21) 0.30 (25)
Belgium 0.23 3 (21) 0.15 (21) 0.09 (20) 0.21 (20) 0.40 (18)
EUROPE
Spain 0.20 4 (22) 0.08 (23) 0.06 (24) 0.09 (23) 0.45 (13)
France 0.19 5 (23) 0.07 (24) 0.07 (22) 0.07 (24) 0.43 (16))
Germany 0.18 6 (24) 0.11 (22) 0.08 (21) 0.13 (22) 0.32 (24)
Netherlands 0.15 7 (25) 0.04 (25) 0.04 (25) 0.04 (25) 0.36 (23)
Saudi Arabia 0.50 1 (2) 0.49 (3) 0.36 (4) 0.62 (2) 0.51 (5)
MIDDLE EAST
AND AFRICA
Bahrain 0.49 2 (3) 0.44 (7) 0.26 (13) 0.62 (2) 0.59 (1)
United Arab Emirates 0.48 3 (4) 0.45 (6) 0.31 (8) 0.59 (6) 0.53 (4)
Qatar 0.47 4 (7) 0.46 (5) 0.30 (10) 0.62 (2) 0.50 (8)
South Africa 0.31 5 (16) 0.18 (20) 0.07 (22) 0.28 (14) 0.58 (2)
Refer to methodology on page 13 for more details.

Methodology
About Expat Explorer About Expat Economics
The Expat Explorer survey, now in its third year, is the largest global survey of The Expat Economics league table ranks countries in terms of three main economic
expats. Commissioned by HSBC Bank International and conducted by third party factors: Income, Disposable Income and a measure of Luxury. All countries with a
research company GfK, 4,127 expats were questioned through an online survey from sample size of 30 and above are included in the economic league table. Scores from
26th April 2010 to the 7th June 2010, with expats from over 100 countries worldwide each factor are equally weighted to arrive at an Overall ‘Expat Economic’ Score and
taking part – making this unique survey the largest of its kind. Individuals from four Overall Rank.
continents described the opportunities and challenges they experience living away
Individual country rankings for the constituent elements (Income/Disposable Income/
from home. The survey provides an insight into how expat life differs from country to
Luxuries) are also available. Scores for Income and Disposable Income are averaged to
country, continent to continent and from an expats’ country of origin.
produce a ‘Wealth Accumulation Hotspot Score’ and Rank for each country.
Please note the sampling technique used for the 2010 survey does not claim to give
‘Income Score’ is derived from proportion of expats surveyed in each country
a fully representative sample of expatriates. In addition, it differs substantially from
who earn at least $200k per annum. ‘Disposable Income Score’ is derived from
the sampling technique used in 2009. Therefore, comparisons of results year on year
proportion of expats surveyed in each country who have a disposable income of
are not statistically valid and have been made for illustrative purposes only.
$3000k+ per month compared to their country of origin. ‘Luxury score’ is derived
A sample size of 30 or more respondents from each country was required for from ascertaining the proportion of respondents who have agreed with a number
inclusion in the league tables, in order to be considered robust and indicative of of following statements:
VJGXKGYUCPFVTGPFUQHVJGURGEKƂERQRWNCVKQP6JGNGCIWGVCDNGUCTGDCUGFQPC
e Live in a nicer / bigger property
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 e Have domestic helper / staff (e.g. cleaner/nanny)
those who responded “not applicable” or “refuse to say” have been excluded. Each e Own more than one property
criterion is equally weighted to arrive at a score. The overall ranking is based on the e Own nicer and more cars
average score for a country across the criteria.
e Own a boat / yacht
e Go on more luxurious holidays
e Better healthcare
e Own a swimming pool
Methodology (continued)
6JGETKVGTKCVQIGPGTCVGVJGGEQPQOKEUNGCIWGVCDNGJCUDGGPHWTVJGTTGƂPGFHTQO
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
Country reports
UNITED KINGDOM
e Overall ranking: 20th out of 25

[Life here is]
e Income: 11th out of 25 Very good. Excellent
for first few years; now
e Disposable income: 21st out of 25 getting tricky with global
economic crisis.
e Luxuries: 25th out of 25
- Expat in the UK
e Wealth Hotspot: 17th out of 25
United Kingdom (continued)

6JGEWTTGPVGEQPQOKEENKOCVGJCUCUKIPKƂECPVKORCEVQP7-DCUGFGZRCVU INCOME SCORE DISP. INCOME LUXURY SCORE WEALTH HOTSPOT
SCORE SCORE
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. RANK: 11th RANK: 21st RANK: 25th RANK: 17th
9KVJPGCTN[JCNH
QH7-DCUGFGZRCVUYQTMKPIKPVJGƂPCPEKCNUGEVQTGEQPQOKE
instability has had a visible effect on their career prospects. Nearly one-third (29%) OVERALL SCORE 2TQƂNGQH7-DCUGFGZRCVUUWTXG[GFKP
of UK based expats said there have been reduced career opportunities and 31%
Sample size 420
say they are having to monitor their expenditure more closely – something that has
Country of origin USA (22%); Australia (14%);
become increasingly important due to the increased cost of living that UK based
Canada (10%); France (10%);
expats are faced with. Over half of UK based expats agreed that the cost of living India (6%); Other (38%)
was considerably higher than in their country of origin, spending more on most Occupation Finance (46%); IT (8%);
items except healthcare. Marketing (8%), Other (38%)
Age 18-34 (50%); 35-54 (45%);
The United Kingdom (UK) also scores lowest of all countries on the luxury scale. 55+ (6%)
Expats based in the UK scored lower than average on all luxury factors except RANK: 20th
Gender Male (57%); Female (43%)
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%.
Country reports (continued)

UNITED STATES OF AMERICA
e Income: 8th out of 25 Career enhancing

move; complex
e Disposable income: 14th out of 25 administration;
complex finances.
- Expat in the USA
United States of America (continued)

75#DCUGFGZRCVUURGPFKPIOQTGQPJGCNVJECTG INCOME SCORE DISP. INCOME LUXURY SCORE WEALTH HOTSPOT
SCORE SCORE
+PƃCVKQPCT[OGCUWTGUUGGOVQDGKPEJGEMHQTVJQUGKPVJG75#YKVJQPN[
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. RANK: 8th RANK: 14th RANK: 10th RANK: 12th
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 OVERALL SCORE 2TQƂNGQH75#DCUGFGZRCVUUWTXG[GFKP
cause for concern amongst the expat community. Only 4% of expats based in the
Sample size 231
USA are actively looking to leave and 90% think that their actual circumstances have
Country of origin UK (53%); Australia (6%);
not been impacted.
Canada (5%); France (5%);
Other (31%)
Expats in the USA scored highly for earnings, with 29% earning over $200,000 and
Occupation Finance (27%); IT (10%);
two-thirds (64%) revealing that they now have more disposable income than in their Marketing (6%), Science/
country of origin, yet only 55% save or invest more than they did before relocating, Research (6%); Retired (6%),
Not stated (9%), Other (36%)
NQYGTVJCPVJGQXGTCNNƂIWTGQH6JCVUCKFGZRCVUDCUGFKPVJG75#CTGUVKNN
keen investors with nearly 83% having at least one savings account as well as 42% RANK: 12th Age 18-34 (27%); 35-54 (50%);
55+ (23%)
holding shares in their company (42%).

HONG KONG
e Overall ranking: 9th out of 25 Expat life is great,

especially from a
e Income: 4th out of 25 financial point of view.
Also [the] opportunity
e Disposable income: 9th out of 25 to see different cultures
and lifestyles.
- Expat in Hong Kong
Hong Kong (continued)

'ZRCVUKP*QPI-QPIRQUKVKXGCDQWVVJGGEQPQO[CPFDGPGƂVKPIHTQO INCOME SCORE DISP. INCOME LUXURY SCORE WEALTH HOTSPOT
SCORE SCORE
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 RANK: 4th RANK: 9th RANK: 20th RANK: 8th
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.
OVERALL SCORE 2TQƂNGQH*QPI-QPIDCUGFGZRCVUUWTXG[GF
Although expats in Hong Kong are spending considerably more than average on in 2010:
items such as accommodation (60%) and food and drink (66%), only 7% of expats Sample size 247
based in Hong Kong believe they pay higher tax in their country of residence than in Country of origin UK (49%); Australia (13%); USA
their country of origin (28% on average). (11%); India (5%); Other (22%)
Occupation Finance (61%); Marketing (7%);
Hong Kong based expats were the most likely to invest in their own company’s Other (32%)
shares compared to other nations (51%) as well as investing highly in equity (58%)
Age 18-34 (30%); 35-54 (61%);
and foreign exchange (41%). 55+ (9%)
RANK: 9th
*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.

SINGAPORE
e Income: 1st out of 25

OK for [the] short
e Disposable income: 7th out of 25 term 24 months to
accumulate wealth.
- Expat in Singapore
e Wealth Hotspot: 3rd out of 25
Singapore (continued)
Home to the largest proportion of high earners INCOME SCORE DISP. INCOME LUXURY SCORE WEALTH HOTSPOT
SCORE SCORE
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%.
'ZRCVUDCUGFKP5KPICRQTGDGPGƂVHTQONQYGTVCZVJCPKPVJGKTEQWPVT[QHQTKIKPs
only 8% believe they spend more on tax than they did at home. Of those surveyed, RANK: 1st RANK: 7th RANK: 13th RANK: 3rd
61% also think that they have more disposable income than when living in their
country of origin compared to an overall average of 42%.
OVERALL SCORE 2TQƂNGQH5KPICRQTGDCUGFGZRCVUUWTXG[GF
However, with higher salaries and higher disposable incomes come higher costs; many in 2010:
think they spend considerably more than in their country of origin on accommodation Sample size 109
(72% in Singapore vs. 46% overall) and food and drink (60% vs. 47%). Country of origin UK (54%); Australia (11%); USA
(7%); India (6%); Other (22%)
Expats in Singapore also believe they are already seeing signs of an improved
Occupation Finance (29%); Construction/
economy, with over half (51%) agreeing that the economic situation in Singapore Manufacturing/Utilities
has improved since last year (compared to 22% overall). They are also much less (12%); Marketing (8%), Not
stated (7%), Transport (6%);
worried about having to monitor spending (8% in Singapore compared to an overall
Unemployed (6%); Other (32%)
average of 23%) or reduced career opportunities (15% vs. 20%). RANK: 4th
Age 18-34 (14%); 35-54 (73%);
55+ (14%)

UNITED ARAB EMIRATES
e Income: 8th out of 25 Lots of money, luxury

and better standard of
e Disposable income: 6th out of 25 living with more savings
and investments.
- Expat in the UAE
United Arab Emirates (continued)

7#'DCUGFGZRCVUGPLQ[CNWZWTKQWUNKHGUV[NG INCOME SCORE DISP. INCOME LUXURY SCORE WEALTH HOTSPOT
SCORE SCORE
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
XU+PCFFKVKQPGZRCVUDGPGƂVHTQOOWEJNQYGTVCZEQUVUYKVJCNOQUV
all (94%) of expats based in the UAE paying lower tax than in their country of origin. RANK: 8th RANK: 6th RANK: 4th RANK: 6th
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%. OVERALL SCORE 2TQƂNGQH7#'DCUGFGZRCVUUWTXG[GFKP
Sample size 334

&GURKVGVJGRGTMUCPFKORTQXGFNKHGUV[NGVJGRCUV[GCTJCUDGGPFKHƂEWNV
Country of origin UK (50%); India (10%); Australia
economically for expats based in the UAE, with over three quarters (77%) indicating
(7%); Canada (5%); Other 28%)
that the economic situation has deteriorated over the past year. This has directly
Occupation Finance (26%); Construction/
impacted a quarter of expats who think there are reduced career opportunities Manufacturing/Utilities (12%);
in the UAE, with one in ten of those who thought the economy hadn’t improved, Management (9%), Education
(6%); Other (47%)
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 Age 18-34 (20%); 35-54 (64%); 55+
RANK: 4th (15%)
therefore not actively looking to return home.

AUSTRALIA
e Income: 14th out of 25 It’s been a good move,

though hard work
e Disposable income: 19th out of 25 initially and financially
we are in a lot more debt.
'ZRCVKP#WUVTCNKC
Australia (continued)
Expats in Australia are seeing an improvement in the economic situation but are INCOME SCORE DISP. INCOME LUXURY SCORE WEALTH HOTSPOT
SCORE SCORE
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
KPETGCUGKPVJGRTKEGQHGXGT[FC[KVGOUUJQYKPIVJCVKPƃCVKQPCT[YQTTKGUCTGCVVJG
forefront of expats’ minds. RANK: 14th RANK: 19th RANK: 10th RANK: 16th
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 OVERALL SCORE 2TQƂNGQH#WUVTCNKCDCUGFGZRCVUUWTXG[GF
tax (40% vs. 28%) are two areas that are more expensive in Australia than in their country in 2010:
of origin. Even with these increased costs, almost two-thirds (63%) of Australians still Sample size 115
agree that they have more disposable income than they did before moving. Country of origin UK (70%); South Africa (5%);
Other (25%)
While Australia ranks in 16th place on the economics league table, it scores highly
Occupation Finance (17%); IT (10%);
in other aspects, such as quality of life (Australia ranked 2nd in Expat Explorer’s Retired (10%); Management
2009 quality of life survey) and luxuries. 63% of Australia-based expats are able to (8%); Education (6%); Not
stated (8%), Other (41%)
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 RANK: 16th Age 18-34 (24%); 35-54 (47%);
55+ (29%)
are predominantly from the UK (70%) and the country makes a popular retirement
destination, with retirees accounting for one in ten expats.

FRANCE
I have a better quality
of life but, due to
the present rate of
e Overall ranking: 23rd out of 25 exchange regarding the
euro and the pound, it
e Income: 22nd out of 25 has caused hassle [with]
regards [to] finance
e Disposable income: 24th out of 25 which I didn’t
have before.
- Expat in France
France (continued)
France is a popular destination among expat retirees INCOME SCORE DISP. INCOME LUXURY SCORE WEALTH HOTSPOT
SCORE SCORE
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. RANK: 22nd RANK: 24th RANK: 16th RANK: 16th
The economic situation in France has been seen as relatively unstable by the
OCLQTKV[QHGZRCVUDCUGFVJGTG6JTGGQWVQHGXGT[ƂXGGZRCVUKP(TCPEGVJKPMVJCV OVERALL SCORE 2TQƂNGQH(TCPEGDCUGFGZRCVUUWTXG[GF
the economic situation has deteriorated since last year and with associated currency in 2010:
ƃWEVWCVKQPUKVKUPQVUWTRTKUKPIVQUGGVJCVQXGTQPGVJKTF
KPFKECVGFVJCVVJG[ Sample size 222
have seen an increase in the price of everyday items. Expats based in France also Country of origin UK (53%); USA (25%);
believe tax costs are considerably higher than in their home nation (36% vs 28% Other (22%)
overall). Due to the high number of retirees, 90% of French expats remain relatively Occupation Retired (33%); Finance (9%);
unscathed by this economic uncertainty and are not looking to move home. They Education (7%); Travel (6%);
IT (6%); Unemployed (6%);
are also less likely than those in other countries to have to monitor their expenditure Other (33%)
(21% in France vs. 23% overall) or have to worry about reduced career opportunities RANK: 23rd Age 18-34 (15%); 35-54 (38%);
(9% in France vs. 20% overall). 55+ (48%)

SPAIN
e Overall ranking: 22nd out of 25 Since the crisis started

in the UK and Spain, life
e Income: 24th out of 25 has become very difficult
so will return to UK in
e Disposable income: 23rd out of 25 September until we can
afford to return to Spain.
- Expat in Spain
e Wealth Hotspot: 23rd out of 25
Spain (continued)
Feeling the economic heat more than any other nation INCOME SCORE DISP. INCOME LUXURY SCORE WEALTH HOTSPOT
SCORE SCORE
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 RANK: 24th RANK: 23rd RANK: 13th RANK: 23rd
table (23rd).
Whilst not scoring highly on all luxury criteria, the fact that many expats in Spain are OVERALL SCORE 2TQƂNGQH5RCKPDCUGFGZRCVUUWTXG[GF
likely to have a swimming pool, own a nicer or bigger property and are more likely in 2010:
to run their own business, accounts for the fact they have ranked 13th in the luxury Sample size 130
scales – higher than any other European country. Country of origin UK (71%); USA (8%);
Other (21%)
To cope with the economic fallout, 41% of Spain based expats have had to monitor
Occupation Retired (38%); Education (9%);
their expenditure more closely (much higher than the overall average of 23%), while Unemployed (9%); Finance
over a quarter (28%) have seen an increase in the cost of everyday items. Matched (8%); Media (6%); Other (30%)
with the fact that nearly one-third (29%) of Spanish expats admit that they have less Age 18-34 (14%); 35-54 (39%);
disposable income than in their country of origin, it is clear to see how expats in RANK: 22nd 55+ (49%)
Spain are feeling the pinch. Gender Male (52%); Female (48%)
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.

GERMANY
Sacrifices have been

e Overall ranking: 24th out of 25 made (particularly
financially) but I love
e Income: 21st out of 25 living in another culture
and learning about another
e Disposable income: 22nd out of 25 part of the world rather
than just being a tourist.
'ZRCVKP)GTOCP[
e Wealth Hotspot: 22nd out of 25
Germany (continued)
An unattractive location for those looking for career progression INCOME SCORE DISP. INCOME LUXURY SCORE WEALTH HOTSPOT
SCORE SCORE
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%).
RANK: 21st RANK: 22nd RANK: 24th RANK: 22nd
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 OVERALL SCORE 2TQƂNGQH)GTOCP[DCUGFGZRCVUUWTXG[GF
reduced career opportunities over the past year. As a result, 8% of expats in in 2010:
Germany who thought the economy hadn’t improved are actively looking to return to Sample size 110
their country of origin, whilst a further 8% of that group say that with the economy Country of origin USA (34%); UK (29%);
being so fragile they are also considering a move home. Australia (6%); Other (31%)
Occupation Education (15%); Unemployed
More positively, even though many expats based in Germany have lower levels (12%); Not stated (9%); IT
of disposable income than they did in their country of origin (only 23% of expats (8%); Retired (8%); Science/
Research (6%); Other (42%)
in Germany agree to having more or much more disposable income since moving
RANK: 24th Age 18-34 (28%); 35-54 (50%);
against an overall average of 42%), only 18% are having to monitor their everyday
55+ (22%)
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%).

CHINA
Better work-life
balance, higher income,
e Overall ranking: 10th out of 25 more stable economic
situation, more family
e Income: 12th out of 25 and couple time, a
global perspective and
e Disposable income: 8th out of 25 experiences shared
as a family.
- Expat in China
China (continued)
+PƃCVKQPKUQPVJGTKUGGXGPVJQWIJVJGEQUVQHNKXKPITGOCKPUKPEJGEM INCOME SCORE DISP. INCOME LUXURY SCORE WEALTH HOTSPOT
SCORE SCORE
'ZRCVUKP%JKPCCTGEQPƂFGPVKPVJGEQWPVT[oUGEQPQO[CPFCNOQUVVYQVJKTFU

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
EQWPVT[KUCDKIFTCYVQVJQUGNQQMKPIHQTKPETGCUGFECTGGTQRRQTVWPKVKGUQTƂPCPEKCN RANK: 12th RANK: 8th RANK: 20th RANK: 9th
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 OVERALL SCORE 2TQƂNGQH%JKPCDCUGFGZRCVUUWTXG[GF
in 2010:
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 Sample size 101
RQRWNCTHQTVJQUGYQTMKPIKPVJGDCPMKPICPFƂPCPEGYQTNFYJKEJCEEQWPVUHQTQXGT Country of origin UK (30%); Hong Kong (29%);
USA (11%); Canada (7%);
one-third of the expat community (36%).
Australia (6%); Other (17%)
Although one-third of China-based expats have seen an increase in the cost of Occupation Finance (36%); Education
(10%); Management (9%);
everyday items, the actual cost of living is very low compared to other expat Construction/Manufacturing/
countries; over two-thirds of expats agreed that most everyday items in China were Utilities (9%); Other (36%)
RANK: 10th
cheaper than in their country of origin. However, luxuries did not score very highly for Age 18-34 (15%); 35-54 (74%);
55+ (12%)
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%).

RUSSIA
e Overall ranking: 1st out of 25
e Income: 2nd out of 25 Fantastic broadening

experience with
e Disposable income: 1st out of 25 huge potential
financial benefits.
'ZRCVKP4WUUKC
e Wealth Hotspot: 1st out of 25
Russia (continued)
Russia retains grip on Wealth Hotspot INCOME SCORE DISP. INCOME LUXURY SCORE WEALTH HOTSPOT
SCORE SCORE
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
EQWPVT[KUUGGPCUCIQQFEJQKEGHQTVJQUGNQQMKPIHQTƂPCPEKCNICKPQTVQRTQITGUU RANK: 2nd RANK: 1st RANK: 15th RANK: 1st
their career, with 76% of expats moving there for this reason and just under a
SWCTVGT
QHGZRCVUOQXKPIHTQOVJGƂPCPEGCPFDCPMKPIKPFWUVT[
OVERALL SCORE 2TQƂNGQH4WUUKCDCUGFGZRCVUUWTXG[GF
Increased costs mean that those based in Russia are likely to face higher prices for in 2010:
everyday items than in their home nation. 76% claim that food and drink is more Sample size 33
expensive in Russia when compared to their home nation and over half (55%) agree Country of origin UK (42%); Netherlands (12%);
that housing is also more expensive. However, public transport is one area where USA (6%); Canada (6%);
expats make a saving when compared to their home nation; only 18% see spending France (6%); Other (%)
on public transport as more expensive, compared to an overall average of 27%. Occupation Finance (24%); Construction/
Manufacturing/Utilities
(15%); Not stated (12%);
Although Russia only scores 15th on the luxury scale, expats based there are still Marketing (9%); IT (6%);
more likely to have domestic help (48% vs. 37%), own more than one property RANK: 1st Architecture/ Engineering (6%);
Telecommunications (6%);
(27% vs. 18%) take more exotic holidays (67% vs. 46%) and own their own
Other (22%)
business (21% vs. 14%) than in their country of origin.
Age 18-34 (21%); 35-54 (57%);
55+ (21%)
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%).
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

HSBC Expat Survey 2010

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

HSBC Expat Survey 2010

Uploaded by

Copyright:

Available Formats

HSBC Bank International

The Expat Explorer Survey 2010

Report one: Expat Economics

The Expat Explorer Survey Expat Economics

e Expats from a total of 39 industries/professions

e The addition of new countries in the Expat Explorer league tables,

e Methodology 13 e Further information

About Expat Explorer 13 Contact 37

Overall league table

The top Quartile The bottom Quartile

Refer to methodology on page 13 for more details.

Expat findings (continued)

WEALTH HOTSPOT SCORE

Expat findings (continued)

Earning more More career opportunities

Expat findings (continued)

KPƂPCPEGTQNGU9KVJ#UKCCPFVJG/KFFNG'CUVCNUQYGCVJGTKPIVJGƂPCPEKCNUVQTO Tired of the situation

Expat findings (continued)

Expat findings (continued)

Other country Offshore centre Host country Country of origin

Expat findings (continued)

Regional League Tables

Refer to methodology on page 13 for more details.

Respondents answered income-related questions in one of ten currencies that they

e Overall ranking: 20th out of 25

United Kingdom (continued)

Country reports (continued)

e Overall ranking: 12th out of 25

e Income: 8th out of 25 Career enhancing

United States of America (continued)

Country reports (continued)

e Overall ranking: 9th out of 25 Expat life is great,

Hong Kong (continued)

Country reports (continued)

e Overall ranking: 4th out of 25

e Income: 1st out of 25

Singapore acts as an attractive location for high earners, which is unsurprising as it

Country reports (continued)

e Overall ranking: 4th out of 25

e Income: 8th out of 25 Lots of money, luxury

United Arab Emirates (continued)

Sample size 334

Country reports (continued)

e Overall ranking: 16th out of 25

e Income: 14th out of 25 It’s been a good move,

Although 41% of expats in Australia are seeing an improvement in the economic

Country reports (continued)

Country reports (continued)

e Overall ranking: 22nd out of 25 Since the crisis started

Country reports (continued)

Sacrifices have been

Country reports (continued)

Country reports (continued)

e Overall ranking: 1st out of 25

e Income: 2nd out of 25 Fantastic broadening

You might also like

KPƂPCPEGTQNGU9KVJ#UKCCPFVJG/KFFNG'CUVCNUQYGCVJGTKPIVJGƂPCPEKCNUVQTO Tired of the situation