Expats benefit from higher earnings but have more complicated finances

16 January 2012 - 71% of the respondents report increased earnings since moving abroad, according to the results of HSBC’s 2011 Expat Explorer Survey.

This trend is particularly evident in the Middle East, with Saudi Arabia (8th), Qatar (14th) and Bahrain (16th) ranking highly in the Expat Explorer Income league table. Although expats benefit from higher earning potential and income, moving abroad also leads to more complicated finances with 71% of expats saying their finances have become more complex since relocating.

The complexity seems an inevitable consequence of being an expat: most of those who say their finances have become more complex attribute this to moving money between countries (73%), finances being in different currencies (70%) and managing finances in both home and host countries (68%). Just over half (54%) blame their financial frustration on having a more complicated tax situation than before relocating. The highest ranking countries for financial complexity are the USA (82%), Germany (82%), Switzerland (81%), India (81%) and Brazil (81%).

Yet with the exception of Brazil, expats in these countries are among the least likely to hold an offshore bank account – including India (53%), Switzerland (51%) and the USA (51%) compared to 59% of expats overall. These expats report that they don't see offshore banking as relevant to their circumstances or are unaware of the benefits.

In contrast, expats in Thailand (88%) South Africa (85%) and Vietnam (80%) are most likely to hold offshore accounts. Expats in these countries are much more likely to have previously worked or lived abroad (Thailand 81%, South Africa 70% and Vietnam 83%) than average (68%) and are less likely to say they intend to return to their home country (16%, 21% and 7%) than expats on average (24%): this may explain why they feel an offshore account is more relevant for them.

Source: HSBC