World's 10 best economies for expats
(MoneyWatch) Thinking about moving overseas for work? You're not alone. Roughly 6.3 million Americans live and work abroad. And many extol the virtues of an expatriate life, from the thrill of travel to the benefits of developing friendships around the world.
However, most expatriates choose to work abroad for a practical reason: money. Expats are typically paid more than those who live and work in their home country. In some cases, the cost of living in the host country is lower, too, which translates to a dramatically better standard of living.
But the economic benefits -- as well as the overall experience -- vary markedly from country to country, according to a recent survey of more than 7,000 expatriates commissioned by HSBC. Overall, looking at everything from health care access to the cost of sending kids to school, the financial services company concluded that China was the world's top destination for expatriates. (That might seem like a curious choice given the People's Republic authoritarian regime, and it's worth noting the enormous commercial interests that HSBC, which used to be headquartered in Hong Kong, has in China.) The worst country overall for expats? Egypt.
However, the rankings change markedly depending on what matters to you. If your main concern is economic -- pay, the economic health of your host country (and thus your ability to find a job) and disposable income -- these are the 10 best countries for expatriates, according to HSBC.
World's 10 best economies for expats
10. Turkey
Turkey is rapidly becoming a hot-spot for financial services. The country is also seeing a surge in technology startups. That's contributed to strong economic growth, which leaves 81 percent of expatriates satisfied with the state of the economy. The cost of living is lower than it is in the U.S. And for those who like a staff, domestic help is relatively inexpensive, with one-third of expat families hiring either a nanny or housekeeper.
World's 10 best economies for expats
9. Singapore
One of the world's cleanest countries, this city-state has a relatively high cost of living, but makes up for it by providing great job prospects. Singapore ranks second only to China in offering the richest job opportunities. Expatriates also note that while the cost of everything from transportation to education is higher, it's worth it. Roughly three out of four surveyed said that the quality of education and child care was better in Singapore than in their home country. Crime is virtually nonexistent. Overall, the country ranks 6th out of 37 for the happiest expatriates.
World's 10 best economies for expats
8. Oman
Nowhere are expats as optimistic about the state of the local economy as they are in the Middle Eastern nation of Oman. That's not surprising. According to Expatarrivals.com, the nation has become a major economic force in the region by using its oil dollars to improve infrastructure. Expats are paid well and taxed sparingly, which may be why fully one-quarter of the nation's population is made up of expatriates. The average expat salary here amounts to roughly $10,000 a month.
World's 10 best economies for expats
7. Germany
While virtually all of Europe was in the throes of economic crisis following the 2008 financial crash, Germany remained healthy thanks to a mixture of fiscal policy and vibrant markets for its exports. The cost of living in Germany is high, but pay is generous enough to have more than half of expats saying that their disposable income has improved. But getting a job in Germany isn't easy. The country tightened immigration rules to protect jobs. As a hub for science and technology, however, it actively recruits highly skilled workers. And for expatriates with families, it's ranked as the world's best destination for raising children.
World's 10 best economies for expats
6. Indonesia
The economy is booming, expatriates earn a fortune -- 22 percent are paid more than $250,000 annually -- and the cost of everyday items, from food and housing to transportation and health care, is low. That allows expats in Indonesia to buy a wide range of luxuries. More than half of expats here hire a domestic staff. The food is good and the nation is culturally interesting, people report. The only downside is that it can be tough to manage your finances with the local currency.
World's 10 best economies for expats
5. Cayman Islands
You probably know the nation as a tax haven, but the Cayman Islands are ranked by expatriates as the friendliest nation in the world. As a major financial center, it's easy to manage your finances here, and 70 percent of expats say they enjoy a better quality of life than in their home countries. Available jobs range from banking, accounting and finance to hospitality and teaching. Once here, about 44 percent of expats move their retirement assets into the country.
World's 10 best economies for expats
4. Thailand
With the lowest cost of living of any of the 37 nations surveyed, your money goes a long way in Thailand. But your chance of getting a highly paid job is slight, unless you're transferred in by your multinational employer, according to Expatarrivals.com. Still, with such a low cost of living, you can get a lower salaried position as a teacher or in the travel and leisure industry and make plenty to support a decent lifestyle.
World's 10 best economies for expats
3. Qatar
This pint-sized Persian Gulf state is a natural gas powerhouse that boasts the highest per capita income in the world, according to Expatarrivals.com. Not surprisingly, the jobs most readily available for expatriates are in the petrochemical industry. But there are also opportunities in technology, construction and tourism. The cost of living is relatively low, but Expatarrivals warns that the nation adheres to Islamic law, which can cause some culture shock for Westerners. Expatriats benefit from low taxes here, but those with children say they spend considerably more on education.
World's 10 best economies for expats
2. China
Women make up 61 percent of the expatriate community in China, according to HSBC. Well-educated expats with experience in technology, engineering, pharmacology, banking and manufacturing are in particular demand. Although relocation packages are less lucrative than they used to be, Expatarrivals.com says you can expect your employer to subsidize part of your housing, transportation, health insurance and even tax expenses. Speaking Mandarin can land you better pay, but many international companies commonly use English so it's possible to get by without learning the language.
World's 10 best economies for expats
1. Switzerland
Switzerland, which isn't part of the eurozone, escaped the worst of the mess and has continued to thrive. Almost 1 in 9 expatriates say they're bullish on the local economy, and one-third say they're better off financially since they relocated. That's despite the fact that Switzerland has a considerably higher cost of living than the U.S.
Why? Wages are high. According to Expatfocus.com, an advertising sales executive earns between $70,000 and $90,000 Swiss francs, as does a legal secretary and bilingual customer service representative. Business analysts can earn between $110,000 and $150,000, while a capital markets banking consultant would pull down $165,000 to $195,000. Again, that's in Swiss francs, which are worth roughly $1.10 U.S. dollars.