Expats live more expensively than everybody else. Why?
An annual survey has once again determined the world鈥檚 most expensive cities for expatriates to live in, .
Luanda, Angola's capital, placed first, with Hong Kong and Zurich following closely behind. Of the top 10 destinations, half were cities in Asia, and聽another metropolis from Africa, N鈥橠jamena,聽the capital of Chad, reappeared on the list.
The rankings were compiled by the consulting firm Mercer, based on two decades of research and using New York and the US dollar as its base city and currency, .
What appears to be most striking about the cost of living index isn't the astronomical costs of rent or upswings in currency value, though these factors weigh decisively on rankings and expat salaries.
Due to the rising value of the renminbi, for example, there are nine Chinese cities represented in the list of top 30 most expensive cities, and Hong Kong鈥檚 property market, which , was a primary reason for its No. 2 spot, .
Once again, the high costs of living for expats highlights the disparity between foreign nationals working abroad and local residents in these cities. A number of the places listed are also home to some of the globe鈥檚 widest gaps in economic equality, such as , and .
鈥淲ith 17 percent of city state鈥檚 residents worth S$1m, those who serve, drive, and treat them ,鈥� read a Guardian article on Singapore.
Not all the wealth is constrained amongst foreign nationals, of course. But more often than not, expats can afford to buy imported goods, and in some cities, even produce cleaner air for their children to play in, manifesting a bubble of luxury simply unattainable for most locals.
Last year in Beijing, for example, expat children were shielded from ascending smog levels as the private International School of Beijing 鈥� where families are charged tuition fees ranging from around 鈥� built two domes enclosing its outdoor playgrounds. The cost? $5 million.
鈥淯ntil the skies clear, life in the bubble seems surprisingly good,鈥� CNN鈥檚 Euan McKirdy.
While China鈥檚 high levels of pollution 鈥� and likely, workers鈥� wages 鈥� it enabled expats to demand increased living allowances and healthcare benefits. Headhunters scrambled to optimize packages in their attempts to recruit and retain talent, .
In countries like Mexico, where kidnapping is rife, security companies have indicated that expats are rarely targeted, likely because of their additional protection by international agencies. 鈥淲e鈥檙e not sure totally as to why they shy away from Americans and Canadians, but we think part of the reason is because of our law enforcement communities, whether it鈥檚 the FBI or the RCMP,鈥� Wes Odom, executive vice president of operations for the security firm the Ackerman Group, . 聽 聽
This isn鈥檛 to say that the life of an expat is problem-free. As one recruiter 鈥減ackages are shaped around executives leaving their families in their home country and receiving an allowance for frequent home trips.鈥� Some foreign nationals, particularly Americans, are also required to pay tax in both countries, or have had to repatriate .
But many expats enjoy an inherent advantage, because their paychecks are adjusted based on indexes like Mercer鈥檚, . Locals, on the other hand, aren鈥檛 afforded the same luxury.
