Learn About the Economic Benefits of Expats
Over the years, there has been a global rise in expats and international citizens. There are many reasons why people move abroad to live the expatriate lifestyle. There are many benefits to becoming an expat and living an overseas lifestyle – such as cultural enrichment, career development, tax savings and the overall experience. But what are the benefits to the country and local nationals of expatriates living in their destination countries? In this article, we will focus on the economic benefits of expats and global nomads for countries around the globe.
Money and Property
Expats make about 25% more money than they would do back at home. Switzerland and the Gulf states are the favorite places for those seeking a higher income. Globally, about fifty-two percent of expats save more money as compared to their home country. Additionally, it also accounts for a large flow of income to home countries.
Expats have higher chances of having wealth to be invested. With 57% of expats having more disposable income, expats prefer to invest in both, their host country and home country. Since they are not restricted to one country, they are even more in need of global banking relationships.
Expats are mostly property owners. Sixty-two percent of expats have their properties at different places in the world. Nine percent are property owners in both their host and home countries. 37% of expats are property owners in the country where they are residing and 32% have their properties in their country of origin.
Financial gains fill the life of expats full of healthy prospects. Those who move abroad, about 40% express being an expat has made their overall lives full of positivity. Several factors that motivate them to move overseas are better income prospects, better employment opportunities, and a better lifestyle. However, some local nationals in certain countries, may complain about the impact of expatriates on the local real estate market – such as higher prices for a home. Some locations may charge expatriates a tax or fee when they purchase a new property in their expat destination.
Being an expat gives you the opportunity to diversify the local talent pool. Nearly 60% of expats in OECD countries are secondary and post-secondary educated. They are either employed or pursuing further studies.
Indian and Chinese expats are working at good positions in management, information technology, science, and engineering departments across the USA, Canada, and the UK. Nigerians in the US hold high-level posts in investment banking and law firms.
Morocco’s professional staff abroad filed 876 patents at global sites between 1995 through 2011. Expats in the Philippines typically contribute extraordinarily to navigation all over the world. Most Filipinos are healthcare professionals, paramedics, who are consolidating the healthcare segment.
Immigrant networks, enterprises in host nations can research new avenues in expats’ countries of origin. Japan-based companies are always hiring fresh Chinese graduates to help them deal well with the Chinese market. This is how expats have carved a business niche in worldwide businesses.
Jobs and Taxes
Besides adding to economic efficiency, expats generate employment too. Expats and business people have set up companies that hire millions of locals in a variety of sectors stretching from construction to retail.
The 50 best expatriate business people in the Arabian Gulf now have an overall net worth exceeding $50 billion. Filipino expats have set up companies in the ethnic food sector, recreation, and media, boosting the local economy. These companies also offer a glimpse of the products, services, and talent that their countries of origin have in store – from Chinese food additives to IT specialists from India.
Moreover, through businesses and lucrative jobs, skilled expats contribute generously to the economy of their countries of destination by way of corporate and income taxes.
International Health Insurance Is Often a Requirement for Expatriation
It should be worth noting that expatriates should remember that they may be required to obtain international health insurance coverage if they plan to move to a country where they won’t be covered by the local healthcare system. Many countries are not requiring expatriates to purchase global health coverage before or shortly after moving in order to secure and retain their country visa. It is not that difficult to obtain an international health insurance policy via our site, but note that such policies are subject to medical evidence, so a pre-existing condition may limit your choices or even your move abroad depending on your medical history.