Expatriate? Moving to America?

If you are considering moving to North or South America in the near future, consider the city you are moving to and just how expensive or not it will be for you as an expatriate.

http://www.amazines.com/article_detail.cfm/5224865?articleid=5224865

Living in The Americas: Thinking of Moving Jobs, Cities or Countries?

If you are considering moving to North or South America in the near future, consider the city you are moving to and just how expensive or not it will be for you as an expatriate. When you are looking at The Americas to move to as an expatriate the most expensive countries to live in this region for the last quarter of 2012 are........ Article Source: http://EzineArticles.com/7416344

http://www.onlywire.com/r/114688278

The Middle East and The Expat Factor

The Middle East has always been an expat hotspot and has become more so over the last decade as cities have sprung up amongst the sand swept deserts of the UAE, Bahrain and Qatar. As an expat which cities have a high cost of living, which rank low and what hardships are there to face in these regions?

http://my.telegraph.co.uk/xpatulator/xpatulator/19/the-middle-east-and-the-expat-factor/

How expensive is it to live in the Asia Pacific Region?

The Asia-Pacific Region has some of the most expensive expatriate locations to live in the world. At the number spot is Tokyo for the last quarter of 2012, Hong Kong is fifth, Yokohama seventh, Osaka eighth and Nagoya ninth. What makes Tokyo so expensive and what other Asia Pacific cities are hotspots in the October 2012 cost of living rankings?

http://www.amazines.com/article_detail.cfm/5125883?articleid=5125883

How Expensive Is the Asia Pacific Region for Expats?

The Asia-Pacific Region has some of the most expensive expatriate locations to live in the world. At the number spot is Tokyo for the last quarter of 2012, Hong Kong is fifth, Yokohama seventh, Osaka eighth and Nagoya ninth. What makes Tokyo so expensive and what other Asia Pacific cities are hotspots in the October 2012 cost of living rankings? Article Source: http://EzineArticles.com/7378457

http://ezinearticles.com/?How-Expensive-Is-the-Asia-Pacific-Region-for-Expats?&id=7378457

How Costly Is It To Be An Expat In The Asia Pacific Region?

As the most expensive city in Asia-Pacific and the world Tokyo has an overall COLI of 139.89 compared to New York with an index of 100 and is followed by Zurich (2nd), Geneva (3rd) and Luanda (4th) in the world rankings.

http://www.articlesbase.com/international-business-articles/how-costly-is-it-to-be-an-expat-in-the-asia-pacific-region-6301260.html

Asia Pacific Region Has Tokyo At #1 Most Expensive

The Asia-Pacific Region has some of the most expensive expatriate locations to live in the world. At the number spot is Tokyo for the last quarter of 2012, what other cities are in the rankings?

http://www.isnare.com/?aid=1788750&ca=Career

Asia-Pacific A Costly Expatriate Destination

The Asia-Pacific Region has some of the most expensive places to live in the world for expatriates. Would you go there?

http://my.telegraph.co.uk/xpatulator/xpatulator/14/costly-asia-pacific-on-the-expat-monitor/

Cheapest by far....

Which are the cheapest cities to live in as an expat?


Here are the TOP TEN:

1. Bhutan, Thimphu
2. Tunisia, Tunis
3. Tajikistan, Dushanbe
4. Romania, Bucharest
5. Bulgaria, Sofia
6. Nepal, Kathmandu
7. Korea Democratic Republic of, Pyongyang
8. India, Calcutta
9. Nicaragua, Managua
10. Cambodia, Phnom Penh

For the others go here.

Tokyo Takes Number One Spot As Most Expensive For Expatriates

According to Xpatulator there has been substantial movement this quarter with Zurich and Geneva in Switzerland ranking second and third, Luanda Angola as fourth and Hong Kong China fifth, with Tokyo moving to top spot.

http://www.isnare.com/?aid=1766455&ma=members&ca=World+Affairs

Tax and International Salary Calculations

The question that often comes up is how tax figures into international salary calculations adjusted for cost of living differences.

For example: "Does the calculator take into account the tax rates of each country. I currently pay about 38% in Australia but the UAE tax rate is nil. should I enter my before tax or after tax salary into the calculator."

We advise using net (after tax) salary. The calculator will then apply the following formula based on the selections in the calculator:

Net Salary in Home Location X Cost of living Index Differential X Exchange Rate X Hardship Differential = Calculated Net Salary in Host Location

If you use net salary the result will be the net salary in the new location. Given the tax rate is nil in AED the net salary would not be grossed up for tax but will be adjusted for cost of living, hardship and exchange rate.  If however the new location tax rate was 25% then the net salary would be grossed by 25% to arrive at the equivalent gross salary in the host location.

How Costly Is It To Be An Expat?

What makes Tokyo the most expensive place for expatriates is that it is particularly expensive for the items that consume the largest portion of an expatriates living costs.

http://www.articlesbase.com/international-business-articles/how-costly-is-it-to-be-an-expat-6250248.html

Tokyo Takes Number One Spot As Most Expensive For Expatriates

Tokyo is the most expensive location in the world overall taking all elements of the cost of living into account. It is the most expensive place for expatriates in that it is particularly costly for the items that consume the largest portion of an expatriates living costs. Article Source: http://EzineArticles.com/7333455

http://www.onlywire.com/r/107191117

Cost of Living Rankings For The Middle East October 2012

The most expensive countries in the Middle East for expatriates to live in are: Qatar; United Arab Emirates; Israel; Iran; Lebanon. What other cost of living news is there for the fourth quarter of 2012?

http://internationalcostofliving.com/2012/10/15/cost-of-living-rankings-for-the-middle-east-october-2012/

What are the Cost of Living Rankings for Asia Pacific for October 2012?

Tokyo as the most expensive city in Asia-Pacific, Tashkent has become less expensive for expatriate’s to live in relative to other global locations. What are the other Cost of Living rankings for the Asia-Pacific Area?

http://www.onlywire.com/r/107189082

How Expensive Is The Cost of Living in Europe?

• Most expensive countries for expatriates to live in are: Switzerland; Monaco; United Kingdom; Norway; and Liechtenstein
• The most expensive cities for expatriates to live in are: Zurich (Second most expensive in the world); Geneva; Monaco; London; and Oslo
• The cheapest city for expatriates to live in is: Bucharest in Romania (764 most expensive in the world)

Zurich as the most expensive city in Europe has an overall cost of living index of 134.23 compared to New York with an index of 100, and Tokyo with an index of 139.89. Zurich’s cost of living index is similar to cities such as Geneva, Hong Kong, and Luanda.  Zurich is the most expensive city in Europe mainly because the Eurozone crisis has created a flight to safety in Swiss Francs, which are generally considered safer. The inflows have resulted in the Swiss Franc appreciating, and as a consequence prices have gone up compared to the Euro and the US Dollar. 

Particularly expensive in Zurich are the following basket groups, groceries, healthcare, restaurants meals out and hotels, and transport.  For example a 1 kg bag of apples averages $5.08 in Zurich, 1 kg boneless, skinless, chicken breast $32.65, 1 kg cheddar cheese $23.80, and a 500g loaf white bread $3.17.  A private practice doctor visit for an uninsured patient is likely to cost $125 on average, and a private hospital stay, including nursing care, medications, diagnostic tests, food, and related costs will average $3,675 per day.  A cappuccino (regular, medium) costs on average $5.14, while a meal out (for 2 mid-range restaurant) $103.40.  The average price over the last year for highest available octane petrol / gasoline has been just over $2 per litre.

The below ranking shows the overall Cost of Living Rankings in Europe by city:

1. Switzerland, Zurich
2. Switzerland, Geneva
3. Monaco, Monaco
4. United Kingdom, London
5. Norway, Oslo
6. Liechtenstein, Vaduz
7. Denmark, Copenhagen
8. Russia, Moscow
9. Jersey, Saint Helier
10. France, Paris

Xpatulator.com Head of Client and Marketing Services Denise McManus comments that: “Expatriates should remember that all other things being equal, prices rise fastest in the places where talented people want to be, especially when combined with a sustained high demand for high level skills, where resources such as land are scarce.”

For the full listing for Europe and article go here.

How Expensive Is The Middle East in October 2012?

• The most expensive countries in the Middle East for expatriates to live in are: Qatar; United Arab Emirates; Israel; Iran; Lebanon.
• The most expensive cities in the Middle East for expatriates to live in: Doha (122 most expensive in the world); Abu Dhabi; Dubai; Jerusalem; Tehran
• The cheapest country and city in the Middle East for expatriates to live in: Sanaa in Yemen (711th most expensive in the world).

Doha as the most expensive city in the Middle East has an overall cost of living index of 89.04 compared to New York with an index of 100, and Tokyo, the most expensive city in the world, with an index of 139.89. Doha’s cost of living index is similar to cities such as Aberdeen, Munich, Brussels, and Amsterdam.

Doha is the most expensive city in the Middle East mainly because it is a relatively small centrally controlled economy undergoing rapid growth with large scale infrastructure projects. More than 80% of expatriates in Qatar live in Doha. With a limited number of suppliers of goods and services to the country, when a shortage is experienced in one store, it is usually an indication that all stores will be out of stock. Most goods and services are imported at great cost. Added to the fact that salaries are reputedly the highest in the region (Nationals received a 60% salary hike in September 2011), the cost of living in Doha has increased relative to other cities in the region.

Particularly expensive in Doha are the following basket groups, alcohol, communication, furniture & appliances, housing, and meals out. Alcohol for home consumption, is available for those with a liquor permit, from one shop supplying the country. A midrange bottle of wine is approximately $24, beer ranges from $2.50 to $4.50 for a premium beer. A monthly standard plan internet subscription (4 Mbs) is $113, while the benchmark mobile tariff is $0.13 per minute. A a Blu-ray player averages $145, and you will pay around $1,436 for a 46 inch LED HD TV. While housing has become more affordable since the shortages a few years ago, the benchmark rental for a secure upmarket unfurnished apartment (3 bedrooms) is $4,448 in a central location, and $2,891 in a suburban location, per month, excluding utilities.  Meals out in hotels is very expensive, but as in most cities more reasonable priced options can be found outside of the hotels and malls. Fuel is very cheap at just under $0.28 per litre, and vehicle prices are reasonable compared to
most other parts of the world.

To provide an assignee, sent from a low cost of living country to a more expensive country, with a similar purchasing power to what they have in their home country, requires an adjustment to their assignment salary.  The amount of adjustment depends on which country they come from. The larger the difference in cost of living, the larger the adjustment required to ensure a similar level of purchasing power in the host country.

The Top 10 overall Cost of Living Rankings in the Middle East by city:

1. Qatar, Doha
2. United Arab Emirates, Abu Dhabi
3. United Arab Emirates, Dubai
4. Israel, Jerusalem
5. Iran, Tehran
6. Lebanon, Beirut
7. Bahrain, Manama
8. Kuwait, Kuwait City
9. Palestinian Territories, West Bank
10. Saudi Arabia, Riyadh

Xpatulator.com Head of Client and Marketing Services Denise McManus comments that: “The Middle East is not as expensive in global terms compared to a few years ago.  Inflation in the region is generally low, and in Qatar and the UAE in particular there are more choices in terms of accommodation and schooling. The current situation may change in Qatar as the major projects related to the 2022 FIFA World Cup kick-off and the number of expatriates in Qatar increases dramatically over the next few years.”

New York City is used as the base for the cost of living index rankings and the US dollar is used as the base currency. The cost of living data collected is representative of an expatriate lifestyle, where the local prices for fixed quantities of the same good and services at or near each location, and US dollar exchange rates are used.  Prices in each location are affected by availability (i.e. supply and demand) as well as local pricing regulations and taxes on goods and services (e.g. premiums on luxury goods).  Local inflation is usually representative of local price increases, which in turn impacts an expatriates purchasing power in the host country.  The exchange rate impacts both the price of imports to the host country and the expatriate assignment salary calculation between the home and the host country.  The cost of living has a significant impact on the purchasing power of an expatriate’s salary package.

To get the full cost of  living rank listing for the Middle East go here.

What are the Cost of Living Rankings for Asia Pacific for October 2012?

• The most expensive countries in Asia Pacific for expatriates to live in are: Japan; Papua New Guinea; Singapore;  Australia, China
• The most expensive cities for expatriates to live in are: Tokyo (the most expensive in the world); Hong Kong; Yokohama; Osaka; and Nagoya
• The cheapest city for expatriates to live in is: Dushanbe in Tajikistan (766 most expensive in the world)

Which cities / countries drop in the ranking, and which moved up?

• The biggest mover down the rankings is Tashkent in Uzbekistan, which has dropped to become the 474th most expensive location in the world.
• The biggest mover up the rankings is Papeete in French Polynesia, which has risen to be the 117th most expensive location in the world.

Reasons for this movement: 

Tashkent has become less expensive for expatriate’s to live in relative to other global locations. This is mainly due to the depreciation of the Uzbekistan Som against the US Dollar over the past year.  In September 2011 US $1 could buy UZS 1750, today that has risen to over UZS 1920, increasing expatriate purchasing power by just under 10% in one year.

Papeetes high cost of living is mainly due to the fact that most goods and services are imported at great cost. Furthermore the economy is exposed to the global economy through its heavy reliance on tourism which went into a long decline from 2006 and was compounded by the global recession. Groceries and communication are particularly expensive.

Tokyo as the most expensive city in Asia-Pacific and the world has an overall cost of living index of 139.89 compared to New York with an index of 100. Tokyo is followed by Zurich, Geneva and Luanda in the world rankings.

Tokyo is the most expensive city mainly because of the historical strength of the Japanese currency, the high population density, the high level of salaries, and the lack of resources which result in a high proportion of imports. Particularly expensive in Tokyo are the following basket groups groceries, healthcare, housing, and transport. Benchmark price in a major international retail store for 1 kg apples is $7.08, 1 kg boneless, skinless, chicken breast $11.91, 1 kg cheddar cheese $18.22, and 1 L full cream milk $2.73.

Benchmark price for a private practice doctor visit for an uninsured patient is $125, and a private hospital stay per day including nursing care, medications, diagnostic tests, food, and related costs is $3,675. Benchmark rental for a secure upmarket unfurnished apartment (3 bedrooms) is $6,293 in a central location, and $3,209 in a suburban location, per month, excluding utilities.

The below ranking shows the Top Ten Cost of Living Rankings in Asia Pacific by city:

1. Japan, Tokyo
2. China, Hong Kong
3. Japan, Yokohama
4. Japan, Osaka
5. Japan, Nagoya
6. Japan, Kobe
7. Japan, Kyoto
8. Japan, Kawasaki
9. Japan, Fukuoka
10. Papua New Guinea, Port Moresby

Xpatulator.com Head of Client and Marketing Services Denise McManus that: “Expatriates have long known that Tokyo is a very expensive posting. However it is possible to live within your budget by making sensible choices, for example we know that taxis are expensive, so rather save money and make use of the train service. There are also many expensive restaurants, particularly western branded ones, rather explore some of the many lower and medium-end options.”

For the full Cost of Living Rankings for the Asia Pacific Region go here.

QROPS - The Pension That Travels With You

When you have earned the opportunity to retire abroad it makes sense to ensure your pension goes on working just as hard as you did. A Qualifying Recognised Overseas Pension Scheme (QROPS) does just that by allowing you to take your UK pension with you and invest it in the fund that best suits your needs.

A QROPS frees a pension from many of the restraints that surround it in the UK and can offer huge financial benefits if planned and executed efficiently. Essentially a QROPS pension transfer allows anyone living abroad or planning to move abroad in the near future to put their UK pensions, free of UK tax, into any offshore fund approved by HM Revenue and Customs.

Control and flexibility

You control not only how it is invested but where it is invested, allowing you to choose the jurisdiction with the most beneficial tax system for your circumstances. In some cases this can mean paying no tax at all on your retirement income. A QROPS is also very flexible with a range of investment options that allow you to balance factors such as risk level against the growth and income you expect to receive. And that flexibility extends through the life of the pension, allowing you to take advantage of changes in your situation or in the economic climate.

The key difference between a UK-based pension and a QROPS is that you retain ownership of all the money in your pension fund. You do not have to buy an annuity on retirement, although you can if you wish. Instead your money is invested directly in a QROPS under an asset management plan geared to suit your requirements. And in the event of your death all unspent pension funds can be left to your beneficiaries without being taxed at source.

Eligibility

A QROPS is suitable for anyone living abroad with a UK pension, both expats and people from other nationalities who retire to their home countries. There is no set figure for the amount required to set one up, but experience has shown that an initial investment of over £25,000 is needed to make it worthwhile. It really comes into its own, however, with a pension fund exceeding £100,000 which will allow you to place you investment with an approved offshore portfolio bond of your choice.

As with all financial planning it is essential to seek professional QROPS advice before making any decisions. An independent financial adviser will consider your circumstances and be able to advise on whether a QROPS is right for you or whether an alternative plan such as a qualifying non-UK pension scheme (QNUPS) would be a better option.

Company’s Profile:

Whichoffshore provide professional expatriate information on QROPS pensions and offshore tax in order to help British expatriate make the most of their money. For more information, please visit - http://www.whichoffshore.com/

Zurich City - Just How Expensive Is It?

Zurich in Switzerland is a cultural Mecca and renowned for being one of the most desirable cities to live in many a survey. It is also however one of the most expensive cities to live in, ranking in the top ten worldwide and in Europe, in the Xpatulator Cost of LivingRanking Survey for 2012, being surpassed only by Hong Kong and Tokyo respectively.

Costs in Zurich, like the rest of the nation are particularly high for groceries, restaurant meals out, hotels and transport, for example a cappuccino costs around 4.95 CHF / 5.34 USD, while a litre of petrol / gasoline around 1.95 CHF / 2.10 USD.  It is also compulsory for expats to pay taxes, insurances and licenses, making life in this idyllic country extremely expensive, but comparatively it is also known for its high salaries, high buying power and high quality of life.

As in most of the cities we have covered to date, Zurich is no different when it comes to high costs, high competition and limited availability of accommodation. The Household Accommodation Basket has a weighting of 30%, this means that an expatriate who earns, for example 10,000 would typically spend 3,000 (30% of 10,000) on housing. Utilities are also paid out of an expats salary and can cost up to 10% of the cost of the rental amount.

Rental prices for a secure upmarket apartment in the city centre range from 2.59 CHF / 2.79 USD for one bedroom, while a 3 bedroom family apartment can cost up to 4,700 CHF / 5,069 USD per month.  Suburban accommodation is much cheaper and ranges from 1,500 CHF / 1,618 USD for one bedroom, while a 3 bedroom family apartment can cost up to 2,700 CHF / 2,912 USD per month. 

Interestingly the taxes you pay are correlated directly to where you live, if you live in a prosperous area you will pay a lower tax rate, the prosperity is what drives the rate down in that the higher the concentration of companies and wealthy people in a location the lower the rate, thereby benefiting those individuals who are not as well-off. The resulting impact is that as much as accommodation is expensive in cities, the tax rate is less in comparison to outlying areas.

Grocery costs in Zurich are extremely high, making this city one of the most expensive in the world. 

Food prices range from:

1kg of apples – 4.89 CHF / 5.27 USD,

1kg medium sized potatoes – 2.91 CHF / 3.14 USD,

1 dozen eggs -  7.06 CHF / 7.61 USD,

1 500g white bread  - 3.05 CHF / 3.29 USD,

1 litre full cream milk – 1.57 CHF / 1.69 USD

1kg boneless, skinless chicken breast – 31.41 CHF / 33.88 USD,

1.5 litre bottle of water – 1.14 CHF / 1.23 USD.

A good idea is to shop around and not in the City Centre as this is the most expensive place for goods, go to the Shopping Malls around Zurich for the best prices. At the Supermarkets buy unpackaged goods, which are much cheaper and avoid pre-sliced, pre-washed and pre-packaged fruits and vegetables. You can drink the tap water as it is pure and safe, so leave the bottled water in the shops. Meat is very expensive, so either buy conservatively or buy the meat that is in the discounted areas. This meat is close to the expiry date but if frozen at home it can last longer. Discounts are also available for toiletries and the Supermarket branded products are usually cheaper.

Education for expats is average, however expatriate international school costs can range from 30,000 USD for primary schooling to 35,000 USD for Secondary.  

The public schools in Switzerland are of a very high standard and each canton has its own head of education, there is also a Swiss Federation for Private Schooling. So look around before you head straight into the expensive international schools.

A three course meal out for two in a mid range restaurant will also cost up to   97 CHF/ 105 USD, while a burger meal similar to McDonalds will set you back almost 13.17 CHF / 14.20 USD and a Coke / Pepsi  4.56 CHF / 4.92 USD. The price of a monthly membership to a Fitness Club will cost 97.37 CHF / 105 USD per month.

Transportation costs are high for example a one way ticket on local public transport 4.28 CHF /  4.62 USD. The normal taxi tariff starts at 7.40 CHF / 7.98 USD, while a one hour standard taxi tariff is 56.82 CHF / 61.28 USD. One litre of petrol / gasoline will set you back by 1.95 CHF / 2.10 USD.  Many people opt to travel via bicycle to and from work as it is so much cheaper, a yearly bike licence will cost up to 10 CHF / 10.78 USD, it is obligatory and covers you for any personal liability.  If you do commute, look out for discounts and special fares.

Exchange rates as at 16 September 2012 : 1 CHF = 1.07926 USD.

Personalized cost of living indexes for Zurich in Switzerland are based on the basket groups and comparison location(s) selected in the Calculators.

In terms of the hardship people are likely to experience, assessed in global terms, Zurich in Switzerland is ranked as minimal hardship with a hardship index of 10%.

Personalized hardship index premiums for Zurich in Switzerland are based on the comparison location(s) selected in the Calculators.

Denise is an Expat and Marketing Manager at http://www.xpatulator.com/ a website that provides cost of living index information and calculates what you need to earn in a different location to compensate for cost of living, hardship, and exchange rate differences. The complete cost of living rank for all 13 baskets is available here.

Caracas: The Americas most expensive City to live 3rd Quarter 2012

The combination of North and South America cost of living rankings has the oil rich countries of Venezuela and Brazil as the most expensive places to live for expatriates in the Americas.

Caracas is the capital and largest city of Venezuela.  Caracas is the Americas most expensive place to live in July 2012, both overall and based on the cost of living excluding the housing, education, healthcare and transport baskets. Sao Paulo and Rio de Janeiro in Brazil follow a close 2nd and 3rd.  Overall Caracas, is the 5th most expensive place to live in the world and has an overall cost of living index of 135,7. Important industries in Caracas include chemicals, textiles, leather, food, iron and wood products. Caracas is a regional centre for the distribution of products.

The economy of Venezuela is dominated by the petroleum sector accounting for roughly a third of GDP, around 80% of exports and more than half of government revenues. Gold, diamonds and iron ore are mined as well. Venezuela contains some of the largest oil and natural gas reserves in the world and consistently ranks among the top ten crude oil producers in the world.

Venezuela is a country ruled by politics. Irrespective of the socialist system instituted by President Hugo Chávez, with vigilant price controls for a range of basic products and a wave of nationalizations and expropriations, life in Caracas perhaps more than in any other Latin American capital, is still defined by its reliance on one volatile commodity: oil.

Despite oil prices being relatively low, oil-export proceeds create arbitrage opportunities for everyone in the community. The abundance of oil further attracts companies that want to extract it, regardless of the politics. Hence the influx of these people from as far as China and Russia, including representatives from other multinational groups selling products in Venezuela, explains why even a basic apartment in Caracas can be rented for as much as $4,000 a month, with rents in some districts running to double or triple that amount.

Caracas also differs from cities elsewhere in the hemisphere in that Venezuela operates a stringent system of controls of the currency, the optimistically named bolívar fuerte, or “strong bolívar.”

*On January 2010, the government of Venezuela created a two-tiered official exchange rate system. Imports designated as "non-essential" receive a rate of 4.3 bolivares per dollar, and "essential" goods are exchanged at a rate of 2.6. There is also a third and unofficial exchange rate in the black market valued at around 6.8 bolivares per dollar (March 2010).

The Venezuelan government decides what "essential" goods qualify for the 2.6 rate. They include imports for sectors related to food, health, education, equipment, and technology; remittances to relatives settled abroad; students' academic expenses abroad; expenses related to health, sport, culture, and scientific investigations; payments to retired and resident pensioners abroad; and currency conversions related to diplomatic activities. Full details (in Spanish) can be found through the Central Bank of Venezuela.

* Information from XE (http://www.xe.com/currency/vef-venezuelan-bolivar-fuerte?r=1#additionalinfo)

Caracas is particularly expensive for clothing, education and groceries. For example a litre of milk costs around 1.60 USD and a loaf of white bread 1.80 USD in Caracas compared to 0.90 GBP / 1.40 USD and 1.03 GBP / 1.62 USD respectively in London. Not everything in Caracas is expensive, while a litre of petrol costs around 0.13 USD in Caracas, it can cost around 1.02 USD in New York.

The cost of living in Caracas in Venezuela is very high compared to other places with the overall cost of living being determined using the prices for defined quantities of the same goods and services across 13 Basket Groups of 780 places.

Alcohol & Tobacco costs are very high compared to other places sitting at 57^th more expensive in comparison to 780 other places, for items such as alcohol at a bar, beer, locally produced spirit, whiskey, wine (where alcohol is legally sold) and tobacco related products.

Domestic Beer can cost up to $2.60, while Imported Beer is approximately $4.30 and a pack of Marlboro Cigarettes will set you back almost $5.

The cost of Clothing is also very high and Caracas is the 4^th most expensive for items such as business suits, casual clothing, children's clothing, coats, evening wear, footwear, hats, shoe repairs and underwear.

A ladies suit consisting of a blazer/jacket, summer dress, pantyhose and a pair of shoes can cost between $250 – 730 while a man’s suit including blazer/jacket, shirt, jeans, socks and a pair of shoes will set you back between $350 – 430. A pair of Levis can cost up to $100 and a plain Zara or H&M summer dress ranges up to $80 - 100.

When it comes to shopping you can find the same quality clothes and appliances as in the US, but it can cost up to three times the price.

Communication costs are average compared to other places for various costs such as call charges, home telephone rental, Internet connection, mobile data costs, mobile phone contract and service provider fees. There are 389 places that are more expensive, and 390 places that are less expensive for communication.

A Prepaid Mobile Tariff for local calls (including no discounts or plans) comes to $.042 per minute, while the internet (6Mbps, with unlimited data via Cable/ADSL) can cost approximately $49 per month.

Education costs are very high compared to other places for items such as creche / pre-school fees, primary school fees, high school fees and tertiary study fees. There is 1 place that is more expensive.

An international school can cost approximately the following per Year group for annual tuition and often there is a one-time capital fee that must be paid :
PreNursery - N-PK: $10,078;

Kdg.- grade 5: $18,076;

Grades 6-8: $22,481;

Grades 9-10: $23,473; and

Grades 11-12: $24,128.

Furniture & Appliance costs are very high compared to other places for items such as a DVD player, fridge / freezer, furniture, household equipment, iron, kettle, light bulbs, microwave, television, toaster, vacuum cleaner and washing machine. There is 1 place that is more expensive, of the 780 comparable places.

Grocery costs are the highest compared to all other 780 places for items such as baby consumables, baked goods, baking, canned foods, cheese, cleaning materials, cleaning products, dairy, fresh fruits, fresh vegetables, fruit juices, meat, oil & vinegars, pet food, pre-prepared meals, sauces, seafood, snacks, soft drinks, spices & herbs.

The price for a basket of 39 items ranges between $465 - 505, and these are on the increase. A 1.5 litre bottle of water can cost $2.00, a bottle of mid-range wine $15 and domestic 0.5 litre beer $2.20.

Healthcare costs are very high with Caracas sitting at the 6^th most expensive place for general healthcare, general practitioner consultation rates, healthcare/medical insurance, hospital private ward daily rate and non-prescription medicine.

Household Accommodation costs place Caracas at the 27^th most expensive for items such as accommodation, apartment, flat, house, villa, rent, electricity, household fuels, household gas, water, and local property rates / residential taxes / levies.

Basic Electricity, gas, water and garbage rates for a 85m² Apartment can cost up to $86, while a house for rent in La Lagunita with a garden, pool, barbecue, service areas, electrified perimeter, closed street surveillance and daily maintenance can cost up to $11 600/month.  

Comfortable neighbourhoods for expats to live in with a family, include Valle Arriba, Lomas de la Alameda, Campo Alegre and Santa Rose de Lima/Lomas de San Roman/Lomas de Tamanaco and la Lagunita.  Other attractive areas comprise Altamira, and Los Palos Grandes as they are close to public transportation, goods and service stores, restaurants, cafes and business centers and are also considered safe areas to live in.

Las Mercedes can be noisy, but it is safe with all the amenities in walking distance. Most children play in areas set aside for them in apartments rather than in parks. There is one large, safe park in the city, Parque del Este, which is near the neighborhood La Florida.

For pricing and availability use a real estate agent that can help you find the right area to live in - www.porlapuerta.com. 

Miscellaneous costs for items such as dry cleaning, general goods, general services, linen, magazines, maid, newspapers, office supplies, postage stamps and stationery place Caracas at 81 more expensive, e.g. a subscription to the Economist for 51 weeks can cost up to $337.

Personal Care for items such as cosmetics, hair care, moisturizer, nappies, pain relief tablets, shampoo, soap, sun block, toilet paper and toothpaste, are very high with 47 places more expensive.

A 2 in 1 shampoo can cost $12, while woman’s cosmetic that cost the equivalent of $3 in Europe can cost $11 in Caracas.

Recreation and Culture costs place Caracas at 49^th most expensive for items such as books, camera, cinema tickets, fitness/health club membership, sports goods and theatre tickets.

A monthly Club Fitness membership can cost $57 for 1 adult while a cinema ticket for an International movie can cost up to $8.

Restaurants, Meals Out and Hotel costs are very high compared to other places for items such as a business dinner, dinner at a family restaurant (non-fast food), 4 star and 5 star hotel rates and take away meal (fast food). There are 6 places that are more expensive.

A reasonable restaurant can cost between $46 – 50 for a dinner including a starter, main dish and a desert per person.  The cost of a double room at a 5 Star hotel $194 - 215, a cappuccino $21.0 and a Combo McDonalds Meal $8.53.

At 44^th most expensive Transport costs are very high compared to other places for items such as car hire purchase, car insurance, car lease, car maintenance, car rental, car service, diesel, petrol, tyres and public transport. 

A round trip ticket on the Metro de Caracas will cost about 75 cents -- pricier than Mexico City's system, but a lot cheaper than some of the high dollar systems you find in the U.S. 

A normal train ticket one way can cost $0.55 while a monthly pass can cost up to $14. 

A 5km/3mile taxi ride can cost between $6 – 6.97, while the normal 1km tariff is $4.25.  Gasoline will cost you up to $0.14 per litre. Public transportation is fairly accessible almost anywhere but can be challenging with children in tow.

Personalized cost of living indexes for Caracas in Venezuela are based on the basket groups and comparison location(s) selected in the Calculators.

In terms of the hardship people are likely to experience, assessed in global terms, Caracas in Venezuela is ranked as extreme hardship with a hardship index of 40%. 

Cost of Living Rank - The Americas Locations - Overall Cost of Living & All Baskets (Highest to Lowest):

1. Venezuela, Caracas

2. Brazil, Sao Paulo

3. Brazil, Rio de Janeiro

4. USA, New York (Manhattan) NY

5. Brazil, Brasilia

6. USA, New York (Brooklyn) NY

7. Canada, Toronto

8. USA, Honolulu HI

9. Canada, Vancouver

10. Canada, Edmonton

Further interesting reading on the rising costs in Caracas can be read here:

http://www.bbc.co.uk/news/world-latin-america-17527939

Denise is an Expat and Marketing Manager at http://www.xpatulator.com/ a website that provides cost of living index information and calculates what you need to earn in a different location to compensate for cost of living, hardship, and exchange rate differences. The complete cost of living rank for all 13 baskets is available here.

Hong Kong - Most expensive city to live in the world : 1 July 2012

It is not surprising that Hong Kong is sitting at the top of the list of most expensive places to live in the world.  Why?  While Hong Kong used to be a major manufacturing centre before WWII this only contributed towards 9% of the countries GDP, today 90% of this comes from the service sector. Hong Kong has one of the world’s largest financial hubs, as well as an important trade and cultural hub. It is considered as one of the Four Asian Tigers in terms of its rapid industrialisation and impressive growth rates. The Hong Kong dollar is also linked to the US Dollar, ensuring its strength even in the economic crisis of today, with the Hong Kong Stock Exchange ranked at 6^th in the World.

In 1997 Hong Kong rejoined main land China, which resulted in it becoming more international, and a popular holiday destination.  As a former British Colony, Hong Kong has always been fashionable with expats from Europe with its high standard of living and low tax rates resulting in an approximately 100, 000 expat community.

Expats however, will find most things are more expensive here than in their home country, especially if trying to maintain the same standard of living as experienced back at home.  Hong Kong is ranked as the most expensive place to live in the world according to Xpatutualor.com’s latest cost of living rankings for July 2012.

The cost of housing in Hong Kong is one of the largest contributors to the high cost of living mainly due to the shortage of land. It is approximately 5% more expensive than Tokyo based on the overall cost of living including household accommodation. Household accommodation comprises 30% of the overall cost of living index. A huge contributor to this cost is the lack of space, with the majority of the population residing in apartment buildings and housing enclaves.

Choice varies enormously, where on average a single-bedroom apartment of 500 sq ft in Happy Valley will cost you around $2 000, or for the same amount you can have a 3 bedroom village house in the New Territories. If budget is a concern, many expats live in communities such as Discovery Bay on Lantau Island, rather than living on Hong Kong Island. Even further out in the Mui Wo, Sai Kung or Cleanwater Bay prices are even lower, but you must be prepared to commute to work. These communities do have fully formed communities, which include schools. Only the wealthiest people get to live in the luxurious hilltop village which overlooks the China Sea.

The state also relies heavily on imported goods and products from Mainland China and other nations. Imported meat products, canned foods and fresh fruit and vegetables are very expensive and can cost twice as much in comparison to other Asian countries. Beverages such as wines, beers, tea, coffee and water, are all imported, making them expensive to purchase. Imports from China are however relatively less expensive than those from other Western countries.  There are a number of supermarket chains in Hong Kong these include Wellcome and ParknShop.  There are also Westernised supermarkets such as ParknShop International, where expats can find most products from their home countries, but be prepared to pay double or triple for the most basic item. The best advice is to find local wet markets where low cost produce and goods are available, and buy fresh fruit and vegetables once or twice a week to ensure quality and freshness.

Restaurants abound in the city and are roughly divided into East and West Style cuisine. The Western style restaurants are regarded as international and are therefore much pricier.  To experience true bargains and the local eastern cuisine, go to one of the many tiny noodle bars, where you can get a dish for $3, while at the larger Cantonese style restaurants meals go for $10 a head.

Tea shops are easily recognisable by their huge shining brass kettles and supply piping hot or cold drinks for only $2. Alcohol at local shops is significantly lower than in cities such as Singapore, New York and London, however will be twice as expensive in the international hotels and trendy bars.

Transportation in Hong Kong is reliable, with Taxi’s and MRTs (Trains) being the most used mode of transport. Taxi’s have a starting price of $2.50 and have a quirky colour code system – Red will mostly take you to Hong Kong Island and Kowloon areas, Green only serve New Territories and Blue run exclusively to Lantau which includes the airport and Disneyland. The MRTs cost between $0.30 and $3 per journey, while a ferry shuttle across the complex of Hong Kong Islands can be as cheap as $0.15. An Octopus Card, which covers all public transport, will help you save any more on transport costs and allow you to easily manage without a car.

Clothing is enjoyably affordable, as most wares such as clothes, footwear, cosmetics and accessories come from Mainland China and can be found in the local flea and night markets in the downtown areas. Jewelry, gadgets and electronics are also cheap but the quality is questionable.  Labels and brands abound in the Kowloon district shops and malls, where designer wares are popular as the styles and patterns are very much updated with British standards.

Healthcare is also given importance, medical and rehabilitation services are not subsidized and medical insurance is recommended. 

There are a number of notable schools in Hong Kong, including ESF schools, American, Japanese, Chinese, German, and Canadian International Schools of which many are affiliated with British Universities. http://en.wikipedia.org/wiki/List_of_international_schools_in_Hong_Kong

The best way for most expatriates to keep costs low is to adopt a local attitude and live as the locals do. Look for bargains, buy from local shops, go to local restaurants and live a local lifestyle.

Denise is an Expat and Marketing Manager at  http://www.xpatulator.com/ a website that provides cost of living index information and calculates what you need to earn in a different location to compensate for cost of living, hardship, and exchange rate differences. The complete cost of living rank for all 13 baskets is available here.

Latest Cost of Living Rankings out tomorrow 1 July - Don't miss out!!

Will Tokyo retain its top spot as the most expensive place to live in the world based on the overall cost of living, encompassing all cost of living baskets for the 3rd quarter of 2012. How about Zurich, is the city still the most expensive based on the cost of living excluding the housing, education, healthcare and transport baskets. 

Where is the cheapest city to live in the world? Is it still Bhutan?


What are the overall Cost of living indexes and who is going to win the race?


Come back tomorrow to view the list....


brought to you by Xpatulator.com for your most comprehensive source of cost of living information .