The Cheapest Countries for Expats
Ecuador, Poland and the Czech Republic are the cheapest
destinations for living abroad
Munich, 23 March 2016 — For all those who are dreaming of
living in a foreign country, but are on a tight budget, the members of social
expat network InterNations have
identified the most affordable places around the world. Luckily, first-placed
Ecuador is not only the cheapest, but also the most popular destination for
expats around the world. Following closely in second and third position are the
Central European countries Poland and Czech Republic, which are especially
popular among expatriates from the United Kingdom and the United States of
America.
Moving Abroad: Not Only For the
Wealthy
In order to find the cheapest
destinations for expats, InterNations asked more than 14,000 expats from almost
200 countries to rate the cost of living in their new home. They rated their
daily spending on a scale from one to seven, which is from “very bad” to very
good”.
Foreigners rated Ecuador, Poland and
the Czech Republic as the countries with the lowest cost of living. Ecuador was
also ranked first for personal finances for the second year in a row: Not only
are the costs of living considered the lowest in the world, but more than a
quarter of expats in Ecuador (26 per cent) are completely satisfied with their
financial situation, compared to 15 percent globally. The reason why
expatriates in Ecuador are especially happy with their financial gains is not
on account of their income though: More than half of the survey respondents
there who disclosed their income status have a gross yearly household income of
less than 25,000 USD. Second-placed Poland on the other hand, scores with
affordable housing and great job and career opportunities, ranking fourth and
sixth in the respective category, out of 64 countries overall. The Czech
Republic, however, is not a destination for career-oriented expats — instead,
it is perfect for those who are looking for a better quality of living. In the
Quality of Life Index, it ranks in place eight. And just like Poland, the
country offers very good housing opportunities for expats, ranking sixth with
regard to affordable housing.
Saudi Arabia — An Exception That
Proves the Rule
The countries with the lowest costs
of living are mainly located in South America, Central Europe and Asia. The
only surprising exception is Saudi Arabia, which ranked ninth after Romania and
before Indonesia: More than three-fourths are generally satisfied with the cost
of living in the country, while globally only about half of the expats say the
same about their new home. In fact, 68 percent of expats in Saudi Arabia are
overall satisfied with their financial situation, and 85 percent feel that
their disposable household income is enough or more than enough to get by. Therefore
it comes as no surprise that financial reasons are the main motivation for
relocating to Saudi Arabia (26 percent), followed by finding a job on one’s own
(25 percent) and being recruited by a local company (10 percent).
Where Cost of Living Is The Highest
On the other end of the spectrum,
expats encountered the highest living costs in Mozambique, Nigeria and Brazil.
Mozambique and Nigeria also rank in the top five for the most expensive housing
around the world.
Hashim Zein, an American engineer for
OLG in Nigeria and the local representative for InterNations, explains: “The
neighborhoods where expats live are usually more secure and more premium, thus
the costs directly reflect this. Food items typical of Western, South Asian and
Far East cuisines, for example, are imported and naturally cost more as they
differ somewhat from local tastes”.
Despite the high cost of living,
expats in these countries generally feel that they have enough disposable
income. Among those survey respondents in Nigeria who chose to share
information on their household income, 12 percent of expats in Nigeria have an
annual income of more than 250, 000 USD. Those who moved to Nigeria for
job-related reasons were also reimbursed their relocation costs (38 per cent)
or receive free or sponsored healthcare from their employer (53 per cent). An
astounding 85 percent of expats in Nigeria also report that their company
provided them with housing, with 44 percent in Mozambique and 38 percent in
Brazil saying the same.
As Zein observes: “Housing is often
included in expat remuneration packages and the higher risk pay expats enjoy in
Nigeria means more expandable income in spite of the high living costs”.
About the InterNations Expat
Insider 2015 Survey
For its annual Expat Insider survey, InterNations asked more than
14,000 expatriates representing 170 nationalities and living in 195 countries
or territories to rate and provide information on various aspects of expat
life, as well as their gender, age, and nationality. The ratings of the
individual factors were then used to draw up topical indices: Quality of Life,
Ease of Settling In, Working Abroad, Family Life, Personal Finance, and Cost of
Living. These were further averaged in order to rank 64 expatriate destinations
around the world. In 2015 the top ten were Ecuador, Mexico, Malta, Singapore,
Luxembourg, New Zealand, Thailand, Panama, Canada, and Australia.
