Dreaming of a new life overseas? InterNations, the world's largest expatriate network, has just released its Expat Insider 2024 Personal Finance Index, which ranks the worst and best countries for your wallet.
The term expatriate (usually shortened to expat) refers to a person who lives or works outside their country of citizenship, and 2024's index is based on ratings from more than 12,500 of them focusing on three areas: general cost of living, satisfaction with their financial situation and whether their disposable income is enough to lead a comfortable life.
The index features 53 nations, which we've whittled down to 25 key global locations. Read on to discover the most and least expensive places to live and work abroad in 2024, and find out what the expats residing in your country really think. Our countdown begins with the most expensive...
All dollar amounts in US dollars
Canada languishes at the bottom of this year's index. More than half of respondents in the country find their disposable income isn't sufficient to enjoy a comfortable life. According to the Canadian Union of Public Employees, wages continue to lag behind inflation, amplifying cost of living pressures. For instance, a Spanish person residing in Canada complained that “going out for a meal or drinks feels like a luxury.”
Yet it's the nation's punishing housing costs that expats struggle with the most. In fact, a new report from the non-profit Angus Reid Institute has revealed that two in five recent arrivals are considering moving to another Canadian province or even quitting the country for good due to the lack of affordable housing.
Expats in the UK aren't faring much better amid the country's severe cost of living crisis. According to the index, 58% of respondents rate living costs negatively, compared to a global average of 39%. Meanwhile, 43% say their disposable income isn't enough, compared to 30% worldwide, and well over a third are dissatisfied with their financial situation. And no wonder.
Everything from housing to food is exorbitant in the country, while recent studies found that the UK has the highest electricity costs in the world. One US expat had this to say: “I wish our salaries matched the cost of living. I'm able to get by but ideally, I’d like to be able to live on my own and I’m unable to do so on my current pay."
As InterNations has pointed out, Singapore regularly ranks among the most expensive cities worldwide. The city-state now ranks fourth in the world in Numbeo's Cost of Living Index and according to data from consulting firm Mercer, only Hong Kong is pricier for expats. Three-quarters of those surveyed for InterNations' index rate Singapore's living costs negatively.
Rent is among the biggest drains on finances. Rental costs soared following the COVID-19 pandemic and while they've softened recently, prices remain exceedingly high.
Last year, New Zealand came last in the InterNations Cost of Living Index, with expats bemoaning the heavy financial burden in the country, especially in terms of housing, which is both expensive and hard to find.
New Zealand scores better this year, but not by much. Wages are now outpacing inflation, but making ends meet remains a challenge for many. Tellingly, New Zealand citizens are leaving the country in record numbers as per the latest figures from Stats NZ. On the upside, employment website Remote.com recently hailed New Zealand as the nation with the best work-life balance.
The US may be the land of opportunity but the American dream comes at a cost. More than half of foreign people who choose to live or work in the country are dissatisfied with the cost of living, with only 31% happy with their living expenses.
The biggest bugbears are the nation's steep housing costs and notoriously expensive healthcare, not to mention transportation, particularly in areas with poor public transit infrastructure where people have to depend on cars. But prices are high all-round, and the US is currently the ninth most expensive out of the 121 nations featured on Numbeo's Cost of Living Index, ahead of the likes of Ireland, Luxembourg, and Sweden.
Australia has risen up the Personal Finance Index rankings this year and according to data from Mercer, cities in the country are becoming relatively cheaper for workers from abroad. Wages started to outpace inflation at the end of 2023, hence the nation's improving performance.
That said, the country remains one of the least affordable globally. A recent survey by consumer finance firm Pepper Money of more than 5,000 news.com.au readers makes for grim reading. The majority of respondents have had to adjust their household budgets, with mortgage and grocery costs the most taxing. The situation has become so dire that people liken it to living in lockdown since many don't have the means to enjoy a social life.
The quintessential "expensive" country, Switzerland tops Numbeo's Cost of Living Index. Given the excessive cost of housing and other essentials in the nation, you'd be forgiven for thinking Switzerland would come last in the InterNations round-up. But the nation boasts a major saving grace: bumper wages.
A whopping 58% of the expats surveyed reported a gross salary of at least $100,000 (£78k) compared to just 20% globally. For this reason, the proportion of expats who are satisfied with their financial situation is greater than the worldwide average. And 76% report their disposable income is enough to lead a comfortable life against a global average of 70%.
Germany can be a tough country for expats from a social perspective, and the bureaucracy can be difficult to navigate. Despite excellent job security and other positives, foreign workers in the nation aren't all that happy about their financial situation. Moreover, a hefty 45% of respondents are dissatisfied with the cost of living, with housing costs singled out.
As a consequence, InterNations has awarded the nation its lowest-ever score in the Personal Finance Index and overall Expat Insider 2024 list.
More and more people are flocking to live and work in the UAE. But the nation's weakness is its unaffordability. “Quality of life and living standards are pretty good,” said one Sudanese expat. “But living costs, including housing, education, and utility bills, are extremely expensive.”
The country has become a victim of its own success. Rising housing costs have been driven by an influx of expat workers and high-net-worth individuals since the pandemic and the start of the Ukraine War, with Russians descending on the nation en masse. According to Mercer, housing costs in Dubai surged by 21% last year.
When it comes to personal finances for foreign people living and working there, France isn't great “but could be worse”, according to the index. France's scores aren't far off the global average, with 41% of expats rating the cost of living negatively, and 29% expressing dissatisfaction with their financial situation.
Interestingly, Business Insider ran a story in April penned by an American expat who decamped to Paris in 2022. She has been pleasantly surprised at the cost of living and has found that rental prices, groceries and eating out are more or less on a par with what she was paying in small-town Michigan.
Expats in Italy aren't overly bothered by the general cost of living there – 46% of respondents rated it positively, compared to 40% globally. However, survey participants were significantly more negative about their own financial situations.
This all boils down to the country's comparatively poor rates of pay, paucity of decent, stable jobs and low levels of job satisfaction. “It’s hard to find jobs in Italy and the salaries here are extremely low,” says an Angolan expat. But it's pretty much la dolce vita for those who are able to secure well-paid roles, thanks to the affordable living expenses.
Japan has a reputation for being difficult to migrate to, but the land of the rising sun is more welcoming to expats than you might imagine. The Japanese government has just launched a Digital Nomad Visa, which allows the holder to work remotely in the country for six months.
With the yen super-weak right now, this seems an attractive option. And while living costs aren't cheap, wages in the country do tend to be generous.
Austria isn't a paradise for expats, with respondents highlighting their difficulty integrating socially. Yet quality of life is excellent, salaries are among the highest in Europe, and living costs are surprisingly reasonable, though taxes are high.
An impressive 82% of expats surveyed by InterNations say that their disposable household income is sufficient to lead a comfortable life, and more than three in five are content with their financial situation.
Pay in South Africa isn't anything to write home about but living costs are refreshingly affordable, especially housing. According to the website Expatica, Cape Town, a prime destination for expats, is 68% cheaper than New York and 60% less expensive than London.
The major drawback is the country's high crime levels. South Africa scores the lowest for safety and security in the Expat Insider 2024 Personal Finance Index, 53rd out of the 53 countries covered. Foreigners living and working there must take their personal safety extremely seriously, and prioritise stringent security measures in their homes and daily routines.
Expats rave about Spain's wonderful culture, climate, and healthcare. The Mediterranean country boasts an excellent quality of life ranking and scores highly for personal finances, thanks to its generally affordable living costs.
Nonetheless, jobs are in relatively short supply, with unemployment among the highest in Europe and local pay isn't great. Working remotely in the country is probably the best option for those seeking a new life there, especially if they come from a high-wage nation.
Relocating to China has its challenges but the government is taking steps to encourage more foreign workers to do so.
Salaries are lower than in Western countries but living costs are lower still, meaning expats tend to live well. According to expat insurance firm William Russell, rents, groceries, and transportation are considerably more affordable. For instance, the typical rent in Shanghai, mainland China's most expensive city, is over 54% cheaper than in London.
One of the friendliest countries in the world according to the expats surveyed, Brazil offers newcomers a very warm welcome. In terms of personal finance, the nation is third out of the 53 countries covered for individual financial wellbeing, with almost four in five happy, while a majority of expats say their disposable household income is more than enough to lead a comfortable life. This has more to do with Brazil's affordable living costs than bountiful wages.
The largest negative is the country's high crime rates – only South Africa scores worse for personal safety, so foreigners living and working there need to be streetwise and have their wits about them at all times.
According to Expatica, Thailand has a substantial expat population of up to five million people. In addition to the nation's rich culture, cuisine, and beaches, Thailand is exceedingly affordable. As per Numbeo data, monthly living costs bar housing for a single person come in at around $565 (£442), while typical rent for a one-bedroom apartment outside of a city centre comes in at $450 (£352) per month.
However, salaries in the country are much lower than those in Western nations, so many expats opt to work remotely rather than seek employment there.
Mexico attracts many US and Canadian expats, with the country's fantastically affordable cost of living the deciding factor for many. According to the InterNations survey, 62% of respondents rate this factor favourably and 71% are satisfied with their financial situation.
The main red flag is Mexico's high crime rates. The country scores low for safety and security, and expats should be especially mindful of their personal safety (though some states, such as Yucatán, are relatively risk-free).
India has much to offer expats, but its quality of life is generally poor – India ranks second to last in the index by this metric. The biggest issues include substandard infrastructure and alarming levels of pollution.
However, living costs are extremely low and over two-thirds of respondents are happy with their financial situation. To give you an idea of just how cheap the nation is, a meal in a regular restaurant costs just $2.99 (£2.34) on average, and the typical cost to rent a one-bedroom apartment away from a city centre is a tiny $131 (£102) a month, according to Numbeo.
Likewise, the Philippines isn't perfect – it scores low for quality of life, with only Ireland, India, and Kuwait ranking lower in the index. But various other pluses make up for the downsides in many respects, most notably the friendliness of the people and the remarkably affordable cost of living.
According to Numbeo, the estimated monthly living costs for a single person are only $541 (£416), while the average cost of renting a one-bedroom apartment outside of a city centre is just $168 (£129) per month.
A magnet for North American retirees, four in five expats are happy with their life in Panama.
Finances-wise, 74% are content with their financial situation, more than any other country, and 88% find that their disposable household income is enough or more than enough to lead a comfortable life. Housing is reasonable – 62% rate the cost of housing favourably – and Panama is the easiest country in the index for finding accommodation.
Indonesia scores low for quality of life, with healthcare and transport particularly poorly rated. But the nation is a cut above in terms of friendliness and finances. According to an American expat, “it definitely takes less money to live comfortably [in Indonesia].”
Living costs are minimal. According to Numbeo, eating out, housing, and utilities are the standouts. An inexpensive restaurant meal averages just $1.85 (£1.42), renting a one-bedroom apartment away from a city centre costs $172 (£132) a month, and basic utilities (electricity, heating, cooling, water and rubbish collection) for an average apartment will set you back just $65.96 (£50.74) per month.
Colombia takes the silver medal this year in the Personal Finances Index, up from seventh place last year. The South American nation has seen its popularity soar among expats in recent years, in part due to its financial appeal.
According to the index, 85% of expats in Colombia rate the cost of living favourably, double the global average. This sentiment is echoed by high satisfaction levels when it comes to their financial situation (only 11% are dissatisfied), while an impressive 91% of respondents report their disposable income is enough for a comfortable life. The only snag is Colombia's relatively high crime rates – the nation is placed a lowly 46th out of the 53 countries covered for safety and security.
For the fourth year running, Vietnam reigns supreme as the champion of affordability in the 2024 InterNations Personal Finance Index. The nation consistently impresses expats with its low cost of living, making it a dream destination for budget-conscious individuals.
A staggering 86% of expats in Vietnam rate the cost of living favourably, with housing, groceries, and utilities all mega-cheap. Plus, expats in Vietnam tend to be richer than the global average: almost a fifth report a gross salary of $150,000 (£115k) or more, compared to 10% worldwide.
The quality of healthcare in the country is good in larger cities where many private options are available, but poorer in rural areas. Meanwhile, crime rates in Vietnam are relatively low and the expats surveyed championed the warm and friendly nature of its citizens.
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