expat assignment meaning

What is Expatriate?

Expatriate is a term used to describe an employee who is temporarily or permanently assigned to work in a foreign country. Expatriates may be assigned to work in a foreign country by their company, or they may be sent to work in a foreign country by their government. Expatriates may be assigned to work in a foreign country for a variety of reasons, including to gain experience working in a foreign country, to learn a new language, or to gain knowledge about a foreign culture.

What are the benefits of expatriate assignments?

There are many benefits of expatriate assignments for both the employee and the employer. For the employee, expatriate assignments can offer opportunities for growth and development, as well as new and exciting experiences. They can also provide a chance to learn about a new culture and to improve foreign language skills. Additionally, expatriate assignments can offer a higher salary and a variety of benefits, such as tax breaks and allowances.

For the employer, expatriate assignments offer the chance to send employees to new and challenging assignments, which can help to develop their skills and knowledge. Additionally, expatriate assignments can help to build a global network of contacts, which can be beneficial for the company. Additionally, expatriate assignments can be cost effective, as the employee may be able to claim tax breaks and allowances.

Who uses Expatriate?

Expatriate is used by human resources professionals to describe employees who are temporarily assigned to work in a foreign country. These workers may be sent by their company to work in a new office or to support a project in a foreign country. Expatriates may also be transferred to a new position in a foreign country.

How do you build an expatriate program?

There is no one-size-fits-all answer to this question, as the best way to build an expatriate program will vary depending on the company’s needs and goals. However, some tips on how to build an expatriate program include:

• Establish a clear purpose for the program. Before creating an expatriate program, it is important to establish a clear purpose for it. What are the company’s goals for the program? What do they hope to achieve by sending employees abroad?
• Define the target audience. Who will the program be aimed at? Is it for senior executives only, or will it also include lower-level employees? Defining the target audience will help to determine the specific criteria that employees must meet in order to be eligible for the program.
• Establish eligibility criteria. In order to be eligible for an expatriate program, employees must meet certain criteria. Establishing clear eligibility criteria will help to ensure that only the most qualified employees are chosen for the program.
• Design a comprehensive selection process. The selection process for an expatriate program should be comprehensive and rigorous. It should include a review of the candidates’ skills and experience, as well as their personal and professional goals.
• Create a comprehensive training program. Once employees have been selected for an expatriate program, they need to be properly trained for their new role. The training program should include information on the company’s culture and business practices, as well as on the specific country where the employee will be working.
• Develop a support system. An expatriate program is only successful if there is a strong support system in place. This includes a network of mentors and advisors who can help the employee adjust to their new surroundings.

Why do you need an Expatriate program?

The modern workplace is a global one, and businesses need to be able to operate in multiple countries in order to be successful. In order to do this, they need to have employees who are able to work in different cultures and who have the skills to navigate different business environments. An expatriate program is a way to identify and recruit employees who have the necessary skills and cultural understanding to work in a foreign country. It also provides a way for businesses to support their employees as they move to a new country and help them to adjust to their new surroundings.

Where should you post your expatriate jobs?

There are a few different places to post Expatriate jobs. One popular site is Indeed.com. You can also post directly on company websites or job boards. Another option is to use a staffing agency that specializes in finding candidates for international positions.

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What Is an Expatriate?

Understanding expatriates.

• Retiring Abroad

Foreign Earned Income Exclusion

Foreign tax credit, expatriation tax.

• Pros and Cons of an Expatriate

The Bottom Line

• Taxpayer Types

Expatriate (Expat): Definition, With Pros/Cons of Living Abroad

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

Lea Uradu, J.D. is a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, and Tax Writer.

Investopedia / Julie Bang

An expatriate, or expat, is an individual living and/or working in a country other than their country of citizenship, often temporarily and for work reasons. An expatriate can also be an individual who has relinquished citizenship in their home country to become a citizen of another.

Key Takeaways

• An expatriate is somebody who has left their country of origin in order to reside in another country.
• Expats may leave home for work reasons and seek more lucrative employment in a different country.
• Expatriates may live for a while overseas or completely renounce their citizenship of one country in favor of another.
• Retiring abroad has become an increasingly popular option.
• The IRS may impose an expatriation tax on individuals who renounce their citizenship, usually based on the value of a taxpayer's property or income in the United States.

An expatriate is a migrant worker who is a professional or skilled worker in their profession. The worker takes a position outside of their home country, either independently or as a work assignment scheduled by the employer, which can be a company, university, government, or non-governmental organization.

If your employer sends you from your job in its Silicon Valley office to work for an extended period in its Toronto office, you would be considered an expatriate or "expat" after you arrive in Toronto.

Expats usually earn more than they would at home, and more than local employees. In addition to salary, businesses sometimes give their expatriate employees benefits such as relocation assistance and housing allowance. The expat will need to open a local bank account that will allow them to function in their new home.

Living as an expatriate can be exciting and present an excellent opportunity for career advancement and global business exposure, but it can also be an emotionally difficult transition that involves separation from friends and family while adjusting to an unfamiliar culture and work environment. Hence, the reason behind the higher compensation offered to these migrant workers.

Special Considerations: Retiring Abroad

Much expatriation occurs during retirement. While most Americans spend their retirement in the U.S., a growing number are opting to retire overseas . People are motivated to relocate abroad at an older age for several reasons , including lower cost of living, better climate, access to beaches, or some combination of those and other reasons. However, it can also be tricky to navigate taxes, long-stay visas, and the language and cultural differences experienced when settling down in other countries.

Popular retirement destinations include countries in Central and South America, the Mediterranean, and parts of Europe.

A common choice presented to a retiree expat is between permanent residency and dual citizenship. Note that neither dual citizenship nor residency gets you out of filing a U.S. tax return every year. It is both surprising and burdensome, but Americans still have to pay income taxes wherever they live, and they owe it no matter where their income was earned.

You may also have to file an income tax return in your country of residence, although most deduct the amount American residents pay to the U.S. via treaties that minimize double taxation.

If you're a retiree or near-retiree who's on the fence, you face a tough decision that will require some soul searching and research—and maybe a trip abroad (or several) to test the waters before you make any decisions.

For Americans working abroad as expatriates, complying with United States income tax regulations is an added challenge and financial burden because the U.S. taxes its citizens on income earned abroad. To avoid double taxation , the U.S. tax code contains provisions that help to reduce tax liability . Taxes paid in a foreign country can be used as a tax credit in the U.S., which when applied against the expat’s tax bill, reduces it.

The Foreign Earned Income Exclusion (FEIE) , for example, allows expats to exclude from their tax returns a certain amount of their foreign income, which is indexed to inflation. For 2023, this amount is $120,000. For 2024, it is $126,500. An expat that earns, say $180,000 in 2023 from their job in a foreign country that is tax-free will only need to pay U.S. federal income tax on $180,000 - $120,00 = $60,000.

The FEIE does not apply to rental income or investment income. Therefore, any income made from interest or capital gains from investments will have to be reported to the IRS. The Foreign Tax Credit (FTC) is a provision that ensures expats are not double-taxed on their capital gains.

For example, assume an expat falls in the 35% income tax bracket in the U.S. This means their long-term capital gain on any investment is taxed at 15%.

Since the FTC provides a dollar-for-dollar credit against taxes paid to a foreign country if the expat paid 10% tax to the country where they work, they'd only have to pay 5% tax to the U.S. Likewise, if they pay no tax to the foreign country, they’ll owe the full 15% tax to the U.S. government.

If the income tax paid to a foreign government far exceeds the amount of the credit (because the foreign tax rate far exceeded the U.S. rate), the expat will forfeit that amount. The credit, however, can be carried into the future.

An individual who has renounced their citizenship in their home country and moves to another is also referred to as an expatriate for tax purposes and is subject to an exit tax known as expatriation tax .

According to the Internal Revenue Service (IRS), the expatriation tax provisions apply to U.S. citizens who have renounced their citizenship and long-term residents who have ended their U.S. residency for tax purposes, if one of the principal purposes of the action is the avoidance of U.S. taxes .

This emigration tax applies to individuals who:

• Have a net worth of at least $2 million on the date of expatriation or termination of residency
• Have an average annual net income tax liability that is more than $190,000 if the expatriation date was in 2023 ($201,000 if the expatriation date is in 2024) over the five years ending before the date of expatriation or termination of residency
• Do not (or cannot) certify five years of U.S. tax compliance for the five years preceding the date of their expatriation or termination of residency

Advantages and Disadvantages of Becoming an Expatriate

Living and working in another country for an extended period of time can have its benefits. These can range from new experiences and adventure to more practical considerations like a lower cost of living or being closer to extended family abroad. Depending on where you settle, you may also get government perks like free healthcare and education and more favorable taxation.

There are also some potential drawbacks. Regarding taxation, unless you fully relinquish your American citizenship, you will still need to file tax returns each year and may need to pay taxes to Uncle Sam, even on income earned in your new country.

You'll also be a long way from home, potentially. This can make seeing friends and family more difficult, and time zone differences can also interfere with finding a good time to link up by phone or video chat. Learning a new language and customs can also be difficult for some, and certain items or products that you like may not be available where you live. And remember that not all countries enjoy the same level of political and economic stability that the U.S. does.

New experiences and maybe a better climate

Potentially lower cost of living

Potential access to affordable healthcare

Potential for double taxation

Long way away from friends and family

Language, cultural, political, and economic barriers

Potential challenges securing the proper visa

What Does It Mean to Become an Expatriate?

An expatriate or "expat" is somebody who leaves their country of origin and settles abroad for an extended period of time, often permanently.

What Is Expat Taxation?

Americans living overseas still have to file U.S. tax returns unless they relinquish their American citizenship. Several international tax treaties exist to help minimize double taxation.

What Is an Expat Community?

When people relocate to a foreign country, they often find comfort in seeking out other foreigners, especially from their home country. Expat communities are enclaves of people from a similar national origin, often with their own school and shopping options. In many countries, English-speaking enclaves are called "Anglo" communities.

Expats typically have to navigate a complex web of tax rules and regulations, which can be challenging to understand and comply with. Though retiring abroad to a lower cost of living, there are retirement considerations to comply with. In addition, expat U.S. Federal taxes are complicated, though they may rely on tax credits and income exclusions to receive favorable U.S. tax treatment.

Bonache, Jaime, and et al. " The Interaction of Expatriate Pay Differential and Expatriate Inputs on Host Country Nationals' Pay Unfairness ." The International Journal of Human Resource Management , vol. 20, no. 10, October 2009, pp. 2137.

The Wall Street Journal. " Americans are Saving Money by Retiring Overseas ," Slide 2.

International Living. " The World’s Best Places to Retire in 2023 ."

World Economic Forum. " The World's Best Retirement Destinations Might Surprise You ."

Internal Revenue Service. " Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad ," Page 3.

Internal Revenue Service. " Tax Treaties ."

Internal Revenue Service. " IRS Provides Tax Inflation Adjustments for Tax Year 2024 ."

Internal Revenue Service. " Foreign Earned Income Exclusion ."

Internal Revenue Service. " Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad ," Page 15-16.

Internal Revenue Service. " Foreign Tax Credit ."

Internal Revenue Service. " Topic No. 409, Capital Gains and Losses ."

Internal Revenue Service. " Foreign Taxes that Qualify for the Foreign Tax Credit ."

Internal Revenue Service. " Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad ," Page 24.

Internal Revenue Service. " Publication 519, U.S. Tax Guide for Aliens ," Pages 23-24.

Internal Revenue Service. " Expatriation Tax ."

Internal Revenue Service. " 26 CFR 601.602: Tax Forms and Instructions; Rev. Proc. 2023-34 ," Page 21.

Internal Revenue Service. " 26 CFR 601.602: Tax Forms and Instructions: Rev. Proc. 2022-38 ," Page 19.

Internal Revenue Service. " Publication 519, U.S. Tax Guide for Aliens ," Page 24.

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Managing International Assignments

International assignment management is one of the hardest areas for HR professionals to master—and one of the most costly. The expense of a three-year international assignment can cost millions, yet many organizations fail to get it right. Despite their significant investments in international assignments, companies still report a 42 percent failure rate in these assignments. 1

With so much at risk, global organizations must invest in upfront and ongoing programs that will make international assignments successful. Selecting the right person, preparing the expatriate (expat) and the family, measuring the employee's performance from afar, and repatriating the individual at the end of an assignment require a well-planned, well-managed program. Knowing what to expect from start to finish as well as having some tools to work with can help minimize the risk.

Business Case

As more companies expand globally, they are also increasing international assignments and relying on expatriates to manage their global operations. According to KPMG's 2021 Global Assignment Policies and Practices Survey, all responding multinational organizations offered long-term assignments (typically one to five years), 88 percent offered short-term assignments (typically defined as less than 12 months), and 69 percent offered permanent transfer/indefinite length.

Managing tax and tax compliance, cost containment and managing exceptions remain the three principal challenges in long-term assignment management according to a 2020 Mercer report. 2

Identifying the Need for International Assignment

Typical reasons for an international assignment include the following:

• Filling a need in an existing operation.
• Transferring technology or knowledge to a worksite (or to a client's worksite).
• Developing an individual's career through challenging tasks in an international setting.
• Analyzing the market to see whether the company's products or services will attract clients and users.
• Launching a new product or service.

The goal of the international assignment will determine the assignment's length and help identify potential candidates. See Structuring Expatriate Assignments and the Value of Secondment and Develop Future Leaders with Rotational Programs .

Selection Process

Determining the purpose and goals for an international assignment will help guide the selection process. A technical person may be best suited for transferring technology, whereas a sales executive may be most effective launching a new product or service.

Traditionally, organizations have relied on technical, job-related skills as the main criteria for selecting candidates for overseas assignments, but assessing global mindset is equally, if not more, important for successful assignments. This is especially true given that international assignments are increasingly key components of leadership and employee development.

To a great extent, the success of every expatriate in achieving the company's goals in the host country hinges on that person's ability to influence individuals, groups and organizations that have a different cultural perspective.

Interviews with senior executives from various industries, sponsored by the Worldwide ERC Foundation, reveal that in the compressed time frame of an international assignment, expatriates have little opportunity to learn as they go, so they must be prepared before they arrive. Therefore, employers must ensure that the screening process for potential expatriates includes an assessment of their global mindset.

The research points to three major attributes of successful expatriates:

• Intellectual capital. Knowledge, skills, understanding and cognitive complexity.
• Psychological capital. The ability to function successfully in the host country through internal acceptance of different cultures and a strong desire to learn from new experiences.
• Social capital. The ability to build trusting relationships with local stakeholders, whether they are employees, supply chain partners or customers.

According to Global HR Consultant Caroline Kersten, it is generally understood that global leadership differs significantly from domestic leadership and that, as a result, expatriates need to be equipped with competencies that will help them succeed in an international environment. Commonly accepted global leadership competencies, for both male and female global leaders, include cultural awareness, open-mindedness and flexibility.

In particular, expatriates need to possess a number of vital characteristics to perform successfully on assignment. Among the necessary traits are the following:

• Confidence and self-reliance: independence; perseverance; work ethic.
• Flexibility and problem-solving skills: resilience; adaptability; ability to deal with ambiguity.
• Tolerance and interpersonal skills: social sensitivity; observational capability; listening skills; communication skills.
• Skill at handling and initiating change: personal drivers and anchors; willingness to take risks.

Trends in international assignment show an increase in the younger generation's interest and placement in global assignments. Experts also call for a need to increase female expatriates due to the expected leadership shortage and the value employers find in mixed gender leadership teams. See Viewpoint: How to Break Through the 'Mobility Ceiling' .

Employers can elicit relevant information on assignment successes and challenges by means of targeted interview questions with career expatriates, such as the following:

• How many expatriate assignments have you completed?
• What are the main reasons why you chose to accept your previous expatriate assignments?
• What difficulties did you experience adjusting to previous international assignments? How did you overcome them?
• On your last assignment, what factors made your adjustment to the new environment easier?
• What experiences made interacting with the locals easier?
• Please describe what success or failure means to you when referring to an expatriate assignment.
• Was the success or failure of your assignments measured by your employers? If so, how did they measure it?
• During your last international assignment, do you recall when you realized your situation was a success or a failure? How did you come to that determination?
• Why do you wish to be assigned an international position?

Securing Visas

Once an individual is chosen for an assignment, the organization needs to move quickly to secure the necessary visas. Requirements and processing times vary by country. Employers should start by contacting the host country's consulate or embassy for information on visa requirements. See Websites of U.S. Embassies, Consulates, and Diplomatic Missions .

Following is a list of generic visa types that may be required depending on the nature of business to be conducted in a particular country:

• A work permit authorizes paid employment in a country.
• A work visa authorizes entry into a country to take up paid employment.
• A dependent visa permits family members to accompany or join employees in the country of assignment.
• A multiple-entry visa permits multiple entries into a country.

Preparing for the Assignment

An international assignment agreement that outlines the specifics of the assignment and documents agreement by the employer and the expatriate is necessary. Topics typically covered include:

• Location of the assignment.
• Length of the assignment, including renewal and trial periods, if offered.
• Costs paid by the company (e.g., assignment preparation costs, moving costs for household goods, airfare, housing, school costs, transportation costs while in country, home country visits and security).
• Base salary and any incentives or allowances offered.
• Employee's responsibilities and goals.
• Employment taxes.
• Steps to take in the event the assignment is not working for either the employee or the employer.
• Repatriation.
• Safety and security measures (e.g., emergency evacuation procedures, hazards).

Expatriates may find the reality of foreign housing very different from expectations, particularly in host locations considered to be hardship assignments. Expats will find—depending on the degree of difficulty, hardship or danger—that housing options can range from spacious accommodations in a luxury apartment building to company compounds with dogs and armed guards. See Workers Deal with Affordable Housing Shortages in Dubai and Cairo .

Expats may also have to contend with more mundane housing challenges, such as shortages of suitable housing, faulty structures and unreliable utility services. Analyses of local conditions are available from a variety of sources. For example, Mercer produces Location Evaluation Reports, available for a fee, that evaluate levels of hardship for 14 factors, including housing, in more than 135 locations.

Although many employers acknowledge the necessity for thorough preparation, they often associate this element solely with the assignee, forgetting the other key parties involved in an assignment such as the employee's family, work team and manager.

The expatriate

Consider these points in relation to the assignee:

• Does the employee have a solid grasp of the job to be done and the goals established for that position?
• Does the employee understand the compensation and benefits package?
• Has the employee had access to cultural training and language instruction, no matter how similar the host culture may be?
• Is the employee receiving relocation assistance in connection with the physical move?
• Is there a contact person to whom the employee can go not only in an emergency but also to avoid becoming "out of sight, out of mind"?
• If necessary to accomplish the assigned job duties, has the employee undergone training to get up to speed?
• Has the assignee undergone an assessment of readiness?

To help the expatriate succeed, organizations are advised to invest in cross-cultural training before the relocation. The benefits of receiving such training are that it: 3

• Prepares the individual/family mentally for the move.
• Removes some of the unknown.
• Increases self-awareness and cross-cultural understanding.
• Provides the opportunity to address questions and anxieties in a supportive environment.
• Motivates and excites.
• Reduces stress and provides coping strategies.
• Eases the settling-in process.
• Reduces the chances of relocation failure.

See Helping Expatriate Employees Deal with Culture Shock .

As society has shifted from single- to dual-income households, the priorities of potential expatriates have evolved, as have the policies organizations use to entice employees to assignment locations. In the past, from the candidate's point of view, compensation was the most significant component of the expatriate package. Today more emphasis is on enabling an expatriate's spouse to work. Partner dissatisfaction is a significant contributor to assignment failure. See UAE: Expat Husbands Get New Work Opportunities .

When it comes to international relocation, most organizations deal with children as an afterthought. Factoring employees' children into the relocation equation is key to a successful assignment. Studies show that transferee children who have a difficult time adjusting to the assignment contribute to early returns and unsuccessful completion of international assignments, just as maladjusted spouses do. From school selection to training to repatriation, HR can do a number of things to smooth the transition for children.

Both partners and children must be prepared for relocation abroad. Employers should consider the following:

• Have they been included in discussions about the host location and what they can expect? Foreign context and culture may be more difficult for accompanying family because they will not be participating in the "more secure" environment of the worksite. Does the family have suitable personal characteristics to successfully address the rigors of an international life?
• In addition to dual-career issues, other common concerns include aging parents left behind in the home country and special needs for a child's education. Has the company allowed a forum for the family to discuss these concerns?

The work team

Whether the new expatriate will supervise the existing work team, be a peer, replace a local national or fill a newly created position, has the existing work team been briefed? Plans for a formal introduction of the new expatriate should reflect local culture and may require more research and planning as well as input from the local work team.

The manager/team leader

Questions organization need to consider include the following: Does the manager have the employee's file on hand (e.g., regarding increases, performance evaluations, promotions and problems)? Have the manager and employee engaged in in-depth conversations about the job, the manager's expectations and the employee's expectations?

Mentors play an important role in enhancing a high-performing employee's productivity and in guiding his or her career. In a traditional mentoring relationship, a junior executive has ongoing face-to-face meetings with a senior executive at the corporation to learn the ropes, set goals and gain advice on how to better perform his or her job.

Before technological advances, mentoring programs were limited to those leaders who had the time and experience within the organization's walls to impart advice to a few select people worth that investment. Technology has eliminated those constraints. Today, maintaining a long-distance mentoring relationship through e-mail, telephone and videoconferencing is much easier. And that technology means an employer is not confined to its corporate halls when considering mentor-mentee matches.

The organization

If the company is starting to send more employees abroad, it has to reassess its administrative capabilities. Can existing systems handle complicated tasks, such as currency exchanges and split payrolls, not to mention the additional financial burden of paying allowances, incentives and so on? Often, international assignment leads to outsourcing for global expertise. Payroll, tax, employment law, contractual obligations, among others, warrant an investment in sound professional advice.

Employment Laws

Four major U.S. employment laws have some application abroad for U.S. citizens working in U.S.-based multinationals:

• Title VII of the Civil Rights Act.
• The Age Discrimination in Employment Act (ADEA).
• The Americans with Disabilities Act (ADA).
• The Uniformed Services Employment and Reemployment Rights Act (USERRA).

Title VII, the ADEA and the ADA are the more far-reaching among these, covering all U.S. citizens who are either:

• Employed outside the United States by a U.S. firm.
• Employed outside the United States by a company under the control of a U.S. firm.

USERRA's extraterritoriality applies to veterans and reservists working overseas for the federal government or a firm under U.S. control. See Do laws like the Fair Labor Standards Act and the Family and Medical Leave Act apply to U.S. citizens working in several other countries?

Employers must also be certain to comply with both local employment law in the countries in which they manage assignments and requirements for corporate presence in those countries. See Where can I find international employment law and culture information?

Compensation

Companies take one of the following approaches to establish base salaries for expatriates:

• The home-country-based approach. The objective of a home-based compensation program is to equalize the employee to a standard of living enjoyed in his or her home country. Under this commonly used approach, the employee's base salary is broken down into four general categories: taxes, housing, goods and services, and discretionary income.
• The host-country-based approach. With this approach, the expatriate employee's compensation is based on local national rates. Many companies continue to cover the employee in its defined contribution or defined benefit pension schemes and provide housing allowances.
• The headquarters-based approach. This approach assumes that all assignees, regardless of location, are in one country (i.e., a U.S. company pays all assignees a U.S.-based salary, regardless of geography).
• Balance sheet approach. In this scenario, the compensation is calculated using the home-country-based approach with all allowances, deductions and reimbursements. After the net salary has been determined, it is then converted to the host country's currency. Since one of the primary goals of an international compensation management program is to maintain the expatriate's current standard of living, developing an equitable and functional compensation plan that combines balance and flexibility is extremely challenging for multinational companies. To this end, many companies adopt a balance sheet approach. This approach guarantees that employees in international assignments maintain the same standard of living they enjoyed in their home country. A worksheet lists the costs of major expenses in the home and host countries, and any differences are used to increase or decrease the compensation to keep it in balance.

Some companies also allow expatriates to split payment of their salaries between the host country's and the home country's currencies. The expatriate receives money in the host country's currency for expenses but keeps a percentage of it in the home country currency to safeguard against wild currency fluctuations in either country.

As for handling expatriates taxes, organizations usually take one of four approaches:

• The employee is responsible for his or her own taxes.
• The employer determines tax reimbursement on a case-by-case basis.
• The employer pays the difference between taxes paid in the United States and the host country.
• The employer withholds U.S. taxes and pays foreign taxes.

To prevent an expatriate employee from suffering excess taxation of income by both the U.S. and host countries, many multinational companies implement either a tax equalization or a tax reduction policy for employees on international assignments. Additionally, the United States has entered into  bilateral international social security agreements  with numerous countries, referred to as "totalization agreements," which allow for an exemption of the social security tax in either the home or host country for defined periods of time.

A more thorough discussion of compensation and tax practices for employees on international assignment can be found in SHRM's Designing Global Compensation Systems toolkit.

How do we handle taxes for expatriates?

Can employers pay employees in other countries on the corporate home-country payroll?

Measuring Expatriates' Performance

Failed international assignments can be extremely costly to an organization. There is no universal approach to measuring an expatriate's performance given that specifics related to the job, country, culture and other variables will need to be considered. Employers must identify and communicate clear job expectations and performance indicators very early on in the assignment. A consistent and detailed assessment of an expatriate employee's performance, as well as appraisal of the operation as a whole, is critical to the success of an international assignment. Issues such as the criteria for and timing of performance reviews, raises and bonuses should be discussed and agreed on before the employees are selected and placed on international assignments.

Employees on foreign assignments face a number of issues that domestic employees do not. According to a 2020 Mercer report 4 , difficulty adjusting to the host country, poor candidate selection and spouse or partner's unhappiness are the top three reasons international assignments fail. Obviously, retention of international assignees poses a significant challenge to employers.

Upon completion of an international assignment, retaining the employee in the home country workplace is also challenging. Unfortunately, many employers fail to track retention data of repatriated employees and could benefit from collecting this information and making adjustments to reduce the turnover of employees returning to their home country.

Safety and Security

When faced with accident, injury, sudden illness, a disease outbreak or politically unstable conditions in which personal safety is at risk, expatriate employees and their dependents may require evacuation to the home country or to a third location. To be prepared, HR should have an evacuation plan in place that the expatriate can share with friends, extended family and colleagues both at home and abroad. See Viewpoint: Optimizing Global Mobility's Emergency Response Plans .

Many companies ban travel outside the country in the following circumstances:

• When a travel advisory is issued by the World Health Organization, Centers for Disease Control and Prevention, International SOS or a government agency.
• When a widespread outbreak of a specific disease occurs or if the risk is deemed too high for employees and their well-being is in jeopardy.
• If the country is undergoing civil unrest or war or if an act of terrorism has occurred.
• If local management makes the decision.
• If the employee makes the decision.

Once employees are in place, the decision to evacuate assignees and dependents from a host location is contingent on local conditions and input from either internal sources (local managers, headquarters staff, HR and the assignee) or external sources (an external security or medical firm) or both. In some cases, each host country has its own set of evacuation procedures.

Decision-makers should consider all available and credible advice and initially transport dependents and nonessential personnel out of the host country by the most expeditious form of travel.

Navigating International Crises

How can an organization ensure the safety and security of expatriates and other employees in high-risk areas?

The Disaster Assistance Improvement Program (DAIP)

Repatriation

Ideally, the repatriation process begins before the expatriate leaves his or her home country and continues throughout the international assignment by addressing the following issues.

Career planning. Many managers are responsible for resolving difficult problems abroad and expect that a well-done job will result in promotion on return, regardless of whether the employer had made such a promise. This possibly unfounded assumption can be avoided by straightforward career planning that should occur in advance of the employee's accepting the international assignment. Employees need to know what impact the expatriate assignment will have on their overall advancement in the home office and that the international assignment fits in their career path.

Mentoring. The expatriate should be assigned a home-office mentor. Mentors are responsible for keeping expatriates informed on developments within the company, for keeping the expatriates' names in circulation in the office (to help avoid the out-of-sight, out-of-mind phenomenon) and for seeing to it that expatriates are included in important meetings. Mentors can also assist the expatriate in identifying how the overseas experience can best be used on return. Optimum results are achieved when the mentor role is part of the mentor's formal job duties.

Communication. An effective global communication plan will help expatriates feel connected to the home office and will alert them to changes that occur while they are away. The Internet, e-mail and intranets are inexpensive and easy ways to bring expatriates into the loop and virtual meeting software is readily available for all employers to engage with global employees. In addition, organizations should encourage home-office employees to keep in touch with peers on overseas assignments. Employee newsletters that feature global news and expatriate assignments are also encouraged.

Home visits. Most companies provide expatriates with trips home. Although such trips are intended primarily for personal visits, scheduling time for the expatriate to visit the home office is an effective method of increasing the expatriate's visibility. Having expatriates attend a few important meetings or make a presentation on their international assignment is also a good way to keep them informed and connected.

Preparation to return home. The expatriate should receive plenty of advance notice (some experts recommend up to one year) of when the international assignment will end. This notice will allow the employee time to prepare the family and to prepare for a new position in the home office. Once the employee is notified of the assignment's end, the HR department should begin working with the expatriate to identify suitable positions in the home office. The expatriate should provide the HR department with an updated resume that reflects the duties of the overseas assignment. The employee's overall career plan should be included in discussions with the HR professional.

Interviews. In addition to home leave, organizations may need to provide trips for the employee to interview with prospective managers. The face-to-face interview will allow the expatriate to elaborate on skills and responsibilities obtained while overseas and will help the prospective manager determine if the employee is a good fit. Finding the right position for the expatriate is crucial to retaining the employee. Repatriates who feel that their new skills and knowledge are underutilized may grow frustrated and leave the employer.

Ongoing recognition of contributions. An employer can recognize and appreciate the repatriates' efforts in several ways, including the following:

• Hosting a reception for repatriates to help them reconnect and meet new personnel.
• Soliciting repatriates' help in preparing other employees for expatriation.
• Asking repatriates to deliver a presentation or prepare a report on their overseas assignment.
• Including repatriates on a global task force and asking them for a global perspective on business issues.

Measuring ROI on expatriate assignments can be cumbersome and imprecise. The investment costs of international assignments can vary dramatically and can be difficult to determine. The largest expatriate costs include overall remuneration, housing, cost-of-living allowances (which sometimes include private schooling costs for children) and physical relocation (the movement to the host country of the employee, the employee's possessions and, often, the employee's family).

But wide variations exist in housing expenses. For example, housing costs are sky-high in Tokyo and London, whereas Australia's housing costs are moderate. Another significant cost of expatriate assignments involves smoothing out differences in pay and benefits between one country and another. Such cost differences can be steep and can vary based on factors such as exchange rates (which can be quite volatile) and international tax concerns (which can be extremely complex).

Once an organization has determined the costs of a particular assignment, the second part of the ROI challenge is calculating the return. Although it is relatively straightforward to quantify the value of fixing a production line in Puerto Rico or of implementing an enterprise software application in Asia, the challenge of quantifying the value of providing future executives with cross-cultural perspectives and international leadership experience can be intimidating.

Once an organization determines the key drivers of its expatriate program, HR can begin to define objectives and assess return that can be useful in guiding employees and in making decisions about the costs they incur as expatriates. Different objectives require different levels and lengths of tracking. Leadership development involves a much longer-term value proposition and should include a thorough repatriation plan. By contrast, the ROI of an international assignment that plugs a skills gap is not negatively affected if the expatriate bolts after successfully completing the engagement.

Additional Resources

International Assignment Management: Expatriate Policy and Procedure

Introduction to the Global Human Resources Discipline

1Mulkeen, D. (2017, February 20). How to reduce the risk of international assignment failure. Communicaid. Retrieved from https://www.communicaid.com/cross-cultural-training/blog/reducing-risk-international-assignment-failure/

2Mercer. (2020). Worldwide Survey of International Assignment Policies and Practices. Retrieved from https://mobilityexchange.mercer.com/international-assignments-survey .

3Dickmann, M., & Baruch, Y. (2011). Global careers. New York: Routledge.

4Mercer. (2020). Worldwide Survey of International Assignment Policies and Practices. Retrieved from https://mobilityexchange.mercer.com/international-assignments-survey

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The benefits of taking an expat assignment

Posted on Nov 19, 2019

As the global workforce becomes increasingly mobile, and with more and more people seeking a new life abroad, it’s not unusual to hear of colleagues jetting off on expatriate assignments. That is, taking the opportunity to live and work abroad in a new arm of the business, typically for a set period of time.

You may already be thinking of leaving your existing role, in order to pursue a career at a new organisation where international work and travel are on the cards. Or perhaps your employer has offered you a placement in a new location, and you’re weighing up the choice between staying put and taking the plunge.

There are a range of gains to be made, both personal and professional, by pursuing an expatriate assignment abroad. If you’re contemplating a move of your own, here are a few big wins to think about should the opportunity arise.

Career progression

According to research by Internations, many people who undertake expat assignments find that they experience faster career progression as a result. Willingness to move to a new country for work doesn’t just show loyalty and dedication to a company, but also arms you with skills and experiences that colleagues who haven’t relocated are unable to offer.

Whether it’s international business etiquette, experience and understanding in global processes or simply demonstrating that you are adaptable and willing to go outside of your comfort zone, having an expat work placement on your CV can be a huge boost.

Indeed, if your existing employer is hoping to send you abroad, a potential for career progression will often be touted as a top reason to take the offer. You might see this as a fast-track to a pay rise and promotion, or simply as a valuable addition to your CV which could help you get a desirable new role in future. 

Whichever it is, don’t think of an expat assignment as simply a limited period of time working abroad – it should be a step up the ladder that serves to future-proof you as a seriously employable candidate.

Improve your language skills

On top of demonstrating your flexibility and business acumen, working internationally can also help you to improve your bilingual or multilingual skills. Though this may not apply to someone in Canada looking to move to Australia or New Zealand, for example, it’s true for those moving between almost any other combination of countries.

You may be able to relocate to somewhere like Frankfurt or Paris without having to speak the local language at work, but the chances are you’ll pick up new speaking and listening skills naturally over the course of your time away. If you’re already somewhat proficient, but need to fine-tune your abilities in the world of ‘business speak’, there is no better way to do it than total immersion in a second language.

Aside from being useful on a personal level, enabling you to make friends across borders and store valuable extra language skills for future travel plans, this is another definite boost to your CV. There are multinational organisations in all manner of industries who require bilingual and multilingual staff to keep their wheels turning, and if you can hone in your own skills to meet these needs, you’ll find a host of additional doors open to you in future.

Experience new cultures

Perhaps one of the biggest draws of life abroad for many people, is the chance to experience a whole new culture and way of life. If you’re getting restless in your everyday situation, or simply value the chance to broaden your horizons, taking an expat assignment may well be the solution for you.

From the hustle and bustle of Ho Chi Minh city to the laid-back living of Cuenca, there are cities all over the world that offer something a little different to an expat looking to relocate. Think on the destinations an assignment could open up to you, and the food, history and sightseeing there is to be done while you’re not at work.

Part of life for many expats working away for set periods is being a tourist in your new home; seeing temples in Thailand, sampling street food in Singapore or visiting ancient ruins in Mexico. With a little thought for your work/life balance, it’s not impossible to make working away as much an activity in your own personal adventures as it is in professional development.

Before you go

If you’re sold on the idea of setting off for pastures new, there are a few considerations to keep in mind before you go. However, the joy of an expat assignment is that your employer will take care of much of the less exciting stuff for you.

Working visas, bank accounts and a briefing on any variations in worker’s rights in your new home should all be things your workplace can assist with. Equally, they may be able to offer employee support to help you settle in and tackle any homesickness, and can signpost you to expat networks or language learning help.

If your assignment doesn’t include some kind of guaranteed healthcare plan, be sure to put a global healthcare policy in place before you relocate, in the same way as you might invest in travel insurance before setting off on a leisure trip. This might not be as much fun as researching local customs and listing all the places you want to explore at weekends, but it will ensure that you always have access to high-quality healthcare if you need it while you’re away.

Of course, this list covers just a few of the great things about taking an expatriate assignment. Whether you’re planning to make it a one-time experience, or are hoping to move around frequently, seeing the world as you work, embrace international working opportunities when they arise. And if you don’t think this will ever be an option in your current workplace, don’t be afraid to keep an eye out for opportunities elsewhere – after all, it could be the start of something new.

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10 Best Things About an Expat Assignment

Why you should say yes to an expat assignment.

If offered an expatriate assignment, would you accept it? What would be your main motivation for accepting an expatriate assignment? In this article, we will discuss ten best things about an expat assignment if you are considering relocating to another country.

Moving Between Countries

Through international travelling, you will have the chance to experience the cultural and natural wonders of the world. We have gathered extensive region and country information for expatriates, including tips and information on the health systems in each country. Please select a geographic region or country to read about the latest country information.

Making International Friends

Starting New Projects

Learning new things is part and parcel of an expatriate’s life. If you’ve been working on projects that you’re good at back home, then going on an expat assignment will allow you to expand your horizon. You may be working on a project that’s entirely new for you, and this is the chance to upgrade your skillset. Plus, you will be working with your new coworkers, and it is also a great way to improve your communication skills.

Building New Relationships

Gain Attractive Compensation Package

Accepting a job abroad means access to an excellent expat package. Of course, the package will vary according to your industry, profession, and level of responsibility. It includes relocation expenses, allowances, especially if you’re in a developing country, housing, and education allowance, automobile allowances, home travel allowances, and many more. You may also benefit from improved taxation possibilities depending on where you are moving. For example, countries in the Middle East and the Caribbean often have low tax rates. An expat tax advisor may be able to provide more information on this.

Obtain Promotional Opportunities

Furthermore, when you exemplify great skills through your expat assignment, you have a chance to advance within the company abroad. You are likely to get a promotion when you’re proactive and perform well in your job, but even more so if you take a position abroad. It also means more pay and a financial bonus. So if you get the opportunity to work abroad, grab it, as it may open the door to other big opportunities.

Learn New Languages

Personal Development

When you focus on all the new things an expat assignment offers you, you’re also gaining insights and perspectives for personal growth. Similarly, having an open mind when living and working abroad allows you to discard conditioned learning and evolve into a better person. Being a better person also dramatically helps you with your work . You get to be a better leader and team player that leads to the successful completion of your expat assignment.

Experience the Local Cuisine

A Chance to Tour the City before Settle Down

Generally, international expatriate assignments can last from one to two years. It gives you ample time to check out and live in the city like a local . The timeline allows you to blend in with the locals, make friends, pay bills, and get to know the culture in and out. It also gives you a chance to find out if the work environment allows you to find a balance between work and life. Ultimately, before you end your contract, you will know if it’s the place for you to settle down.

Don’t Forget to Bring International Health Insurance with you.

To ensure you have a successful trip abroad, you must have the right international health insurance coverage.  Make sure your expat employer provides adequate coverage or enough money for you to buy your own coverage Note that not all companies provide proper coverage, so make sure you have a conversation with your employer or hiring manager about adequate international health insurance . Ultimately, it should cover an expat employee, their dependents, and even trailing dependents.

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• Types of Expatriate Assignment

Regardless of the reason, two major challenges face expatriate assignments: costs and family considerations. To overcome these issues, HR needs to design flexible expatriate assignments that match company needs, as well as those of the employee and their family.

Short Term Expatriate Assignment

Many companies are turning to short term expatriate assignments as an answer to cost and family issues. Employees work overseas for a fixed term, usually for a period of three months to one year, on an unaccompanied basis. Home leave allowances are an integral part of the assignment to enable regular trips back to the home country, or family visits to the host country. The benefit for the employee is that there is no need to uproot the entire family and relocate them overseas. The company makes considerable savings from the absence of costs associated with relocation like school fees, shipping of goods, vehicle transportation and furniture storage. 

However, even if the employee is only overseas for three months, HR needs to manage the assignment effectively to make it a successful undertaking on both sides. There are a number of factors to incorporate into a package, even for a short term posting overseas:

• Pre-assignment preparation- language and culture training, orientation, work permits and visas
• Settling-in assistance
• Housing - e.g. serviced apartments or company (found) properties
• Home leave and family visitation allowances
• Host country transportation
• Telephone and internet allowances
• Support for child care and house maintenance in the home country
• Tax assistance and equalisation
• Repatriation support

Long term Expatriate Assignments 

Typically overseas for three to five years, long term expatriate assignments are the traditional form of overseas placements. An employee and family members relocate to a host country for the duration of the assignment. This requires company support and payments for the housing situation in the host and home countries, school allowances, dual career support or spousal assistance, shipment of goods, storage of belongings,  pet relocation , relocation service provisions, tax assistance, cost-of-living adjustment and expatriate allowances. 

Whilst there are many justifiable and cost effective business reasons for sending staff on long-term expat assignments, particularly in situations requiring continuity and a transfer of skills, family issues can make these types of assignments notoriously harder to manage than other forms of expatriate postings. 

Many surveys indicate that families feel HR adopt an "out of sight, out of mind" attitude to its expatriate staff; ensuring that employees cannot say the same about your HR team increases the chances of a successful overseas posting. 

Home Commuters

Living in one country during the week, and travelling home for the weekends is another popular form of expatriate assignments. A home commuting arrangement allows companies to send talent where the business needs it most, on a short-term basis, without relocating an entire family. In addition to the same advantages offered by a short-term assignment, a home commuter arrangement offers a better work life balance for the employee with weekly trips home. However, home commuting is not sustainable in the long-term, unless there are no family considerations. 

Frequent Flyers

This increasing trend in international working brings its own set of challenges with it. In essence, an employee makes regular (extended) business visits overseas and works remotely from the home country. This may mean virtual meetings and phone calls across time zones, so work life balance issues need to be managed carefully if such an assignment is to be successful. Frequent flyer arrangements require flexibility on the part of the company, the employee, and the employee's family, but certainly cause much less upheaval than a traditional expatriate posting. 

Family Matters

No matter the duration of the posting, it is important to remember that family issues need to be at the heart of expatriate assignment design; family concerns is the number one reason for failed expatriate postings. Integrating support for both the employee and the spouse throughout the assignment duration, regardless of the spouse's location, is undoubtedly an essential element of the design of an expatriate assignment. 

Compare  relocation service companies  or search for serviced apartments worldwide to provide hassle free relocations for your employees and their family. 

• Asia Job Opportunities Report
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• Why employees are sent overseas?
• Life as a working expat
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Expat Package (What Do Employees Expect?)

Anne morris.

• 3 March 2020

IN THIS SECTION

The success or failure of an overseas assignment can often be impacted by the quality of the expat package provided to assignees when asked to work overseas.

A competitive compensation package will not only help to attract the best available candidates for the job from within your organisation or when recruiting externally, it will also ensure that your overseas assignees feel fully supported financially throughout the lifecycle of their assignment.

The following guide provides an overview of what employers should be looking to include in a comprehensive expat package to maximise the prospects of a successful assignment outcome for both the assignee and for your business.

What is in an expat package?

The expat package is the combination of basic salary plus benefits in kind offered to a prospective assignee to undertake an overseas assignment. This can be made up of all different types of benefits, from additional living and housing costs to healthcare cover and international schooling fees for dependants.

Traditional expat packages are becoming rare these days, where employers are often able to recruit staff locally, and where unable to source local talent are seeking only single expats to avoid expensive relocation costs for entire families.

However, in circumstances where you need to incentivise a key candidate in your home country, especially for an important long-term assignment, you will need to remunerate accordingly. Below we consider some of the main aspects of a comprehensive expat package, although this list is by no means exhaustive.

Expat salary

The starting point of any expat package is the assignee’s salary. This will depend on the industry, the role and level of responsibility that the assignee will hold.

However their overseas salary should at least match, if not exceed, the typical salary an employee would get paid in their home country for doing the same job.

In some cases, you may be looking to reduce the gross salary to account for generous tax policies in the host destination, although this could negatively impact an assignee’s perception of their value as a prospective assignee.

The individual assignee will still want to feel their sacrifice of working away from home or relocating is being adequately compensated, regardless of any individual gains from the whole travel experience.

Depending on the nature of the host destination, the salary could also include a location or hardship premium for taking the assignment in the first place. This type of additional payment can be commonplace where an assignee is asked to work in a high-risk destination or hostile environment, for example, where living conditions are sub-standard, the climate inhospitable or the infrastructure poor.

Cost of living allowance (COLA)

A cost of living allowance is in addition to an assignee’s salary and is designed to reflect any additional daily expenditure in the host destination. Cost of living adjustments are based on the difference in the cost of necessary goods and services on a day-to-day basis between the host and home locations.

By way of example, where an individual’s net spendable home income is £40,000, ie; what they would be expected to spend to maintain their current standard of living, and it would cost 30% more to live in the host location, the salary would need to be adjusted by an additional £12,000 (30% of £40,000). This may also need to be readjusted throughout the course of the assignment to reflect any fluctuations in currency exchange rates and inflation.

The cost of living allowance is to ensure that an assignee is no better or worse off financially when living overseas at any given time. However, where the host location is less expensive to live, most employers will not require a reduction in salary, thereby effectively increasing the assignee’s standard of living for the duration of the overseas assignment.

Relocation costs

For commuter and short-term assignments, assignee relocation costs will not be necessary, but for long-term assignments and permanent relocations these costs should form an integral part of the expat package.

Relocation costs can include removal or storage expenses, depending on whether or not an assignee is looking to have all their furniture and personal belongings shipped overseas. This will also include flights costs for the assignee and any immediate family members relocating with them.

Another important component of relocation is the cost of any home visits throughout the lifecycle of the assignment, and possibly even a pre-assignment trip to enable the assignee and their relatives to familiarise themselves with their foreign surroundings prior to starting their new life overseas.

Housing costs

Housing, either in part or in full, can provide a huge incentive for assignees to relocate.

The cost of housing will be determined by the availability of suitable housing in the host destination, ideally in areas where an assignee can live near other expats and have a relatively short commute to their new workplace, as well as being close to international schools if they are relocating with dependants.

These types of property can often be in high demand so can be more costly than other accommodation in less appealing areas of a host region, but good quality housing in a decent neighbourhood is likely to be high on an assignee’s requirements when moving abroad with their family on a long-term assignment.

Schooling costs

For an assignee moving with their family they will need to cover the cost of schooling for any children. As with good housing in expat areas overseas, international schools that offer a high standard of education can be expensive, but may well be a deal breaker for the assignee with dependants.

This can be particularly important if an international school presents the only viable option in the host destination, especially where there would be language or cultural barriers for their children to be schooled locally within a foreign education institution. An international school will also ensure that the assignee’s children can continue with the same curriculum.

Travel costs

The offer of a company car for overseas assignees is less common these days, although you may still want to include a travel allowance to help offset motoring and maintenance expenses or to cover public transport costs.

In some parts of the world, depending on the host destination, it may also be better for an assignee to hire a driver rather than purchase their own car or rely on public transport, where the cost of this will need to be included in the expat package or in some way compensated for where necessary.

Healthcare costs

The provision of quality healthcare or international health insurance should be a mandatory element of any expat package. As an employer you have a legal duty to ensure the health and safety of your employees, so providing access to proper healthcare is imperative in discharging that duty. It is also an important aspect of showing your employees that you value their health and wellbeing.

Ideally, any healthcare plan should include access to a 24-hour helpline that assignee’s can use to have any medical or security questions answered, or to facilitate the provision of emergency assistance, at a time when an assignee’s usual points of contact would not be available.

Provider costs

The expat package is not just about providing financial incentives for the assignee. A comprehensive package should also include a range of support services that may be offered both prior to deployment and during the lifecycle of the assignment to help the assignee integrate into their host destination.

This could include a pre-deployment programme of cross-cultural training and education for overseas assignees and their families. You may also want to offer intensive language classes to ensure a more positive employee experience and, in turn, a more successful assignment outcome.

The provision of an ongoing benefit and support program while the assignee is overseas could be outsourced to a local specialist who can help novice expats to settle into their new surroundings and signpost them to different services. You should also provide key HR contacts back home to address any personal or professional problems during the course of the assignment.

Repatriation costs

Often overlooked, the provision of an adequate repatriation package can help you retain key talent within your organisation at the end of an assignment. This should include the assignee’s relocation costs back to their home country. This should also include a suitably senior role to return to home to, or at least the potential for career progression matched to the assignee’s industry experience.

It is important to remember here that expatriates can become an extremely valuable commodity given their overseas experience. To avoid wasted expenditure in an overseas assignment and the potential loss of global talent from within your organisation, you should ensure that your assignee is keen to return home to work for you and the incentives are there to do so.

Expat package essentials

The extent of any expat package will often be determined by the duration of the assignment, the host destination, the assignee profile and their personal family circumstances. Depending on the context, the assignee may also be more or less demanding, while considering the opportunities for career progression that an overseas experience may offer them.

For commuter and short-term assignments, relocation costs will not be needed, while for long-term assignments and permanent relocations, the costs can quickly start to stack up. In most cases, however, prospective assignees may be looking for an expat package that can either offset or completely cover normal living expenses, making the overseas experience financially profitable for them.

For many, especially for veteran assignees and for whom global travel in itself may offer little incentive, a generous expat package may be the price you will have to pay to persuade them to take on new assignments abroad. That said, a cost effective balance must still be struck between adequate compensation for the expat and the likely net revenue this will return for your business.

Explaining the link to assignees between the different elements in the expat package can help to justify the total value of the package, as well as show how one allowance could compensate for another one that is perceived as low by the assignee. In particular, tax considerations should be fully explained in how certain allowances and benefits are delivered, where in some host destinations the provision of benefits in kind can reduce or eliminate the tax liability for assignees, thereby making the overall expat package more attractive.

By articulating a clear Employee Value Proposition (EVP) for assignees, a proposition that is not limited to the allowances and benefits in the remuneration package but can include things like career progression, assignees are more likely to see the true benefits of the expat package on offer.

Need assistance?

DavidsonMorris are employer solutions lawyers with specialist experience in global mobility  consultancy and supporting businesses with their international workforce needs. For advice and support with developing an expat package solution that suits your requirements and budget while appealing to key talent,  speak to us .

Expat package FAQs

What is a full expat benefits package.

There is no definitive list as to what a full expat benefits package should contain where much will depend on the nature of the overseas assignment, the host destination and the assignee’s personal circumstances, including whether the assignee’s family are relocating with them. However, a typical expat package should fully compensate an assignee for working overseas, from cost of living and relocation costs to repatriation costs at the end of the assignment.

What does an expat package include?

An expat package can include a number of different benefits and allowances to compensate an overseas assignee for working abroad. In addition to a salary that at least matches the typical salary an employee would get paid in their home country for doing the same job, the package may include relocation costs, housing costs, healthcare costs, travel costs, schooling costs for dependants and any additional cost of living in the host destination.

What does equalization mean?

In the context of an overseas assignment, equalization refers to the way in which allowances and benefits in kind are delivered to ensure that the assignee is no worse off financially in the host location than their home location. The cost of living allowance is the most obvious example, where a high cost of living allowance in a more expensive host location will ensure the assignee’s purchasing power for goods and services remains broadly the same.

Last updated: 3 March 2020

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.

She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.

Anne is an active public speaker, immigration commentator , and immigration policy contributor and regularly hosts training sessions for employers and HR professionals

• Anne Morris https://www.davidsonmorris.com/author/anne/ Family Visa UK: Explore Ways to Apply
• Anne Morris https://www.davidsonmorris.com/author/anne/ Ukraine Refugee Aid in UK
• Anne Morris https://www.davidsonmorris.com/author/anne/ Understanding British Values
• Anne Morris https://www.davidsonmorris.com/author/anne/ Family Reunion and Immigration

About DavidsonMorris

As employer solutions lawyers, DavidsonMorris offers a complete and cost-effective capability to meet employers’ needs across UK immigration and employment law, HR and global mobility .

Led by Anne Morris, one of the UK’s preeminent immigration lawyers, and with rankings in The Legal 500 and Chambers & Partners , we’re a multi-disciplinary team helping organisations to meet their people objectives, while reducing legal risk and nurturing workforce relations.

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Overcoming obstacles in expat assignments

While it's all too easy to have rosy expectations of an expat assignment, the reality is that moving to another country for a work opportunity is often a difficult process.

It is, of course, assumed that there will be a few snags when relocating, but serious problems can also arise, bringing severe implications with them. Here are some of the most common problems faced by expats on assignments abroad, along with some tips on how to cope.

Family issues

The problem

More often than not, expat assignees bring along a spouse, and possibly one or more children, when they relocate for work. While the family acts as a portable support network, it can also create issues, particularly if the accompanying spouse and child struggle to adjust. For example, a spouse accustomed to working full-time may suddenly find themselves in the role of a stay-at-home partner or parent. For many people, their sense of identity and purpose is aligned with what they do for a living, so they can feel at a loss when they are no longer working. Meanwhile, children may struggle to adjust to a new curriculum at school and might find it difficult to make new friends.

The solution

Preparation is key. Those bringing partners and children with them on expat assignments should endeavour to tackle these problems in advance. Firstly, communicating with your partner and child about their concerns ahead of time can make a world of difference. Then, once in the new destination, remain attentive to your spouse and child and watch for any warning signs of unhappiness. Be careful not to assume that if you're settled in, they are too – everyone adjusts at a different pace and faces their own unique challenges.

Cultural and language barriers

If you're moving to a country where the majority language is different than your own, this can cause obvious difficulties and can affect everything from making business connections to navigating everyday life. Cultural nuances, in particular, are especially likely to get lost in translation. However, even in destinations where the language barrier isn't an issue, differences in culture can still cause misunderstandings and awkward situations, not to mention possible feelings of isolation and difficulty fitting in.

While this problem is unlikely to be circumvented completely, pre-departure preparation can ease the transition. Specifically, cultural training and language lessons are both good ways of preparing for life in your new home. There are many companies who specialise in this. In addition, in many locations around the world, locals are more than happy to help a foreigner learn their language. More often than not, they greatly appreciate any attempt to speak it, no matter how bumbling or mispronounced.

Threats to health and safety

Not all expat assignees will face issues when it comes to health and safety, but for those that do, they can greatly affect their quality of life and stress levels. This is especially true of 'hardship locations', where there is known political instability or a high crime rate. Expats assigned to such locations are often well compensated by their employers, but although this makes everyday life just a little more comfortable, there can still be an emotional and physical price to pay.

In this case, having a detailed repatriation plan is important, as the prospect of returning home can be good motivation to stick it out. If employers haven't offered a hardship allowance for such an assignment, expats shouldn't be afraid to request one, especially if it will be used to mitigate the situation with access to good healthcare and/or appropriate security measures. High-quality housing, safe transportation and good schooling may also be hard to come by in these destinations, so make sure that the relocation package you've been offered can cover these costs.

Further reading

►For advice on dealing with emotional difficulties, read our article on expat depression

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Making Your Expat Assignment Easier on Your Family

• Katia Vlachos

When temporary relocations fail, it’s seldom about the work.

Where do expats go wrong? About 80% move with a partner or family, and it’s often the inability of those people to acclimate to the new environment that causes assignments to fail. Before accepting a temporary reassignment to another country, involve your partner or family in the decision and anticipate the changes it will mean. Prepare for the move well in advance, and discuss the tradeoffs of the choices you’ll need to make. Be particularly sensitive to the possibility that your transition experience may differ from theirs.

As companies expand globally, executives are increasingly being tapped for expatriate assignments. The idea is to spread talent, expertise, and knowledge from headquarters to foreign offices, and vice versa. But these are costly moves — $311,000 per year, according to a  report by PwC and the Cranfield School of Management — and many fail to generate a return on investment. Studies show that an estimated 6%–10% of such assignments are terminated early, while an unknown but sizable percentage involve unnecessary struggle and underperformance.

• Katia Vlachos is a public policy analyst, researcher and writer on cross-cultural transitions and expatriate life. She has a Ph.D. in policy analysis from the RAND Corporation.  

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by Penmore Benefits | Feb 3, 2023 | General , Expatriate

What is an Expat?

In the first video in our expat benefits quick tips series, our Vice President of International Benefits, Tyler Ogilvie, discusses an essential concept in our industry – what is an expat? Thankfully, the answer is straightforward.

An expatriate (shortened to expat) is anyone whose work requires them to leave their home country for more than 180 days in a 365-day period.

Note that this period is not a calendar year, and the 180 days do not need to be in a row. Therefore, there are many different types of international assignments that can qualify as expat assignments.

Some examples of expatriate career types include:

The Classic Expat

The classic expat is an employee who relocates to a new country for work. Their job may have them stay in the country of assignment for a set period (2-5 years) or be indefinite. If the employee has a family, they will likely accompany the employee.

The employee may travel back to their home country for business or personal reasons but are likely outside their home country for more than 180 days in a 365-day period.

Rotator Expats

Rotator expats are employees working on a rotational schedule, like two weeks at work (outside their home country), and one week off (back in their home country). Over 365 days this employee will be outside their home country for more than 180 days for their expat job.

Digital Nomads

The digital nomad is someone who decides they want to relocate to a new country while doing their job, and who is able to work remotely. These employees who live abroad certainly count as an expat and would require specialized coverage – either from their employer, or they may need to find global insurance coverage themselves if they are a contractor or consultant.

Regardless of the type of expat your company employs, specialized benefits and insurance products exist specifically for them and their needs. These global benefits products are built to help cover the employee while outside their home country, or even when they return home when it comes to health, disability, mental health, and other factors of their well being. We will get into the details of the kinds of insurance that exist in future videos.

If you have any questions about expatriate insurance or benefits, please reach out to our VP of International Benefits Tyler Ogilvie . If you are an individual looking for coverage, produce a quote for yourself and purchase quality coverage with our trusted partners at Cigna Global.

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• Understanding and Preventing Expat Failure

You will first recruit potential expat candidates, select the best, provide pre-departure training and send them off to their new homes. They will, in time, return to HQ more agile and experienced than before, revealing you for the thoughtful, sage professional you are.

Easy, right?  Except that, as in life, the smooth path of expatriation is littered with unforeseen obstacles. The costs of failure, and the risks, are in fact considerably higher for expat workers than for traditional employees. So much so that the topic of expat failure is arguably the very foundation of expatriate research.

In this article, we examine some of the traditional causes of expatriate failure, as well as a series of recommendations to reduce the risk.

Also Read: 5 Common Problems Faced by Expatriates

Understanding Expat Failure

Early expatriate scholars labeled any early end to an assignment as an expat failure. Yet later studies recognized that assignments might end for a variety of reasons, some of which can be positive. Consider, for instance, that one of your recently assigned expatriates returns home early to accept a promotion. For you and the employee, that represents not a failure but a success.

Alternatively, the expatriate may return home early to accept a position with the competition. For you, this is indeed a bad look. For the employee, however, it’s a sweet victory. If the expat return is due to a change in corporate strategy, this may signal failure to the uprooted expat, but not necessarily for the organization. By contrast, both parties are likely to view the assignment as a failure if the expat is recalled home due to poor performance.

Expat & Employer Expectations

A broader definition, therefore, holds that expat failure occurs when they fail to meet employer expectations. As has been noted, failure may result if the expatriate is recalled for poor performance or departs for a better offer with a competitor. But even those assignments performed to their bitter end may be failures if the employee does not meet organizational objectives or performs below expectations.

Failure can even result after the assignment ends. Companies often anticipate that returning expatriates, with their international know-how, will prove a boon to their home organization. Indeed, many are appointed to international assignments to groom them for future leadership positions. Yet, in a significant loss on investment, studies show that around one-quarter of expatriate employees leave their employers within two years of their return – often for better jobs elsewhere or due to dissatisfaction with their reintegration to the home office.

The High Cost of Expatriate Failure

The exact failure rate is hard to specify given all of these possible causes, and scholars offering estimates have faced criticism from their more data-driven peers. Yet, consider the warning signs reported in one study. The authors found that over two-thirds of expatriates experienced stress relating to their job performance within their first four months on assignment. Another two-thirds reported concerns about their relationship with their new boss. At the 8-month mark, the situation had improved somewhat, but around half were still expressing concerns.

Organizational Consequences of Expat Failure

The consequences to the organization of such failures are notable, including costs estimated at $1.2 million per expatriate. This hefty price tag comes from the boost to salary that is typically needed to incentivize employees to go abroad. There are also relocation fees, cost of living adjustments, pre-departure training and orientation, and more. Organizations pay for the failures of international staff through loss of reputation with clients and customers. Similarly, other employees may hesitate to accept international assignments when observing their expat co-workers’ shortcomings.

Consequences for an Expatriate

Arguably, an expat experiences an even higher cost of failure than the organization, with failure imposing psychological costs as well as professional and financial burdens. Because expatriates are often chosen precisely because they are among the organization’s best domestic performers, these historic high achievers may be particularly unsuited to handle the stress of failure.

A study from 2007 showed that 45% of the expatriates in their study reported feeling “overwhelmed” with overwork.  Also notable is that 51% felt more overworked than at home. Nearly 50% worked 50 or more hours each week. Outside of the academic research sphere, 2022 research by Cigna Global shows similar issues, with 89% of respondents indicating they were “always on” for work and 98% reporting symptoms of burnout.

Other studies suggest that unsuccessful expatriates may experience losses of self-esteem, confidence, professional reputation, motivation, and a reduced appetite for any future international assignments – even when the causes for failure were beyond their control.

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Also Read: Best Places to Work in the World

Expat Failure: What it (Usually) Isn’t

So, what are the causes of expat failure? It may be tempting to assume that job skills are the main determinant of expat success and that the lack thereof is the main cause of expat failure. In fact, skills are the primary characteristic that many organizations use to select expats. And ensuring a match between an expatriate’s skills and the needed on-assignment skills is important, as is providing expatriates with the role clarity needed to understand what is expected of them.

Yet studies suggest that failure is rarely a matter of insufficient or mismatching skills. The reason? Expatriates tend to perform tasks abroad that are similar to those they were performing at home.

Expat Failure: What it (Often) Is

Instead, the leading risk of expat failure is difficulty adjusting to the new culture, family stress and simple overload of responsibility. (For more detail on this, read How to Become an Expat – Successfully .) The greater the cultural difference between an expatriate’s home country and the host country, the more significant these challenges are likely to be.

Challenges also arise for many expats and their families when foreign national communities are small or local communities are insular and unwelcoming. These environments can cause difficulty for expatriates in making new friends or feeling a part of the community.

Pre-Departure Training

Extensive pre-departure training provides a ready solution for these issues. But some organizations neglect to provide any pre-departure training. Others fail to realize its full benefits by offering simplistic or outdated seminars. In addition, studies show time and again the importance of well-adjusted spouses and children. This emphasizes the importance of including family members in certain pre-departure training and orientation.

Expatriates may also have the right technical skills to succeed but the wrong social skills or personality traits. For instance, more outgoing, charismatic and ambitious employees tend to adjust better to their host environments. In addition, employees’ patience, curiosity and openness to new experiences are particularly important in the international context. Unsurprisingly, prior international experience also predicts future success. Thus, selecting the right employee is a key step in the expatriate process.

Support from Management

Finally, employees expect heightened support from their organizations when going on international assignments. When expats feel unsupported, they may lose their motivation to perform or seek alternative employment.

Expat expectations include workplace features such as salary hikes and improved benefits, improved professional opportunities and performance management systems adapted to the international assignment. Furthermore, support may be needed to ensure that the expatriate stays well connected to HQ and that opportunities for professional advancement remain or improve once on international assignments.  In addition, however, expected support may include non-work needs, such as helping staff members to find a new home or a spouse find a new job.

From Expatriate Failure to Expatriate Success

The risk of expatriate failure is, consequently, a real risk bearing down on both employer and employee. And yet, the research is clear that expatriates offer significant benefits to their employers, from connecting HQ with distant offices to sharing best practices and equitably distributing top talent. The challenge and opportunity for HR professionals, then, is to leverage such opportunities while minimizing risks.

How to do this? Through careful attention to all stages of the expatriate management process. From employee selection to pre-departure training and preparation to ongoing support throughout the assignment and on return, HR professionals can set expats up for success.

• The 5 Best Countries to Work in For Expats
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About the Author

Dr. Thomas J. Bussen, with a Doctorate of Business Administration, JD, and MBA, is an Assistant Teaching Professor at Miami University’s Farmer School of Business, and a former professor at the African Leadership University and the American University of Central Asia.  He is the author of several books, including Shaping the Global Leader and Compliance Management: A How-to Guide . His latest book, Enlightened Self-Interest: Individualism, Community and the Common Good, makes the case for a more inclusive and equitable professional mindset and is expected for release in 2023 with Georgetown University Press.

Sources and Further Reading

Kraimer, M. L., Shaffer, M. A., & Bolino, M. C. (2009). The influence of expatriate and repatriate experiences on career advancement and repatriate retention.  Human Resource Management: Published in Cooperation with the School of Business Administration, The University of Michigan and in alliance with the Society of Human Resources Management ,  48 (1), 27-47.

Lazarova, M., & Caligiuri, P. (2001). Retaining repatriates: The role of organizational support practices.  Journal of world business ,  36 (4), 389-401.

Mesmer-Magnus, J. R., & Viswesvaran, C. (2007). Expatriate management: A review and directions for research in expatriate selection, training, and repatriation.  Handbook of research in international human resource management , 197-220.

Suutari, V., & Brewster, C. (2001). Expatriate management practices and perceived relevance: Evidence from Finnish expatriates.  Personnel Review .

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  Finding meaning in expat life

09 September 2020

By Vanessa King, Science of Happiness Expert 

Meaning matters. Psychological research shows finding meaning in our life is a significant contributor to happiness in both the short and longer term. 

People with a strong sense of what gives their life meaning tend to:  

• experience higher wellbeing
• have a more positive outlook
• be less impacted by stress
• be more engaged at work
• have better physical health
• feel more in control of themselves and their lives
• be less likely to become dependent on alcohol or drugs
• have a healthier old age

Getting clarity on our own sources of meaning is a journey and it is likely to evolve. One thing is for sure if we put our minds to it and apply some of the learnings from science, our expat assignments can help us find it! 

What does meaning in life mean?

In recent years psychologists have identified three primary elements of meaning in life:

1.        Significance: Feeling what we do in life (both inside and outside work) is worthwhile and makes a difference in some way to someone or something else

2.      Coherence: Feeling the narrative of our life makes sense to us

3.      Purpose: Having a sense of purpose and direction

Searching for meaning

Where do we find meaning.

Cultivate more than one source of meaning

• Craft a meaningful life as an expat
• Know your assignment’s true purpose
• Open your mind and horizons

Viktor Frankl, the father of meaning psychology, believed that the search for meaning is a primary human drive, but it’s not easy.

He argued that we each need to discover or create it for ourselves through; experiences, both elevating and adversity; significant work; and creative or good acts.

Expat life can be a rich source of these.

Finding meaning or nurturing it in our lives can be challenging. It often involves getting out of our comfort zone and facing difficulties. But it is a path to finding fulfilment over time so we are able to look back and feel that we’ve lived our best life. 

Meaning is personal. Only we can decide what is meaningful for us.

Research suggests that a meaningful life tends to go beyond the self and our immediate concerns. It is also something more than the sum of our short-term pleasures.

A meaningful life is generally one where we feel connected to and/or contributing to something larger. This may be through:

• our relationships – caring for, nurturing and supporting others
• contributing to good causes and helping others
• increasing knowledge, innovation or beauty in the world
• creating elevating experiences e.g. through learning, creativity or experiencing awe
• spiritual connections e.g. with nature, or through a faith or religion

That sense of something bigger may extend across to future generations too. Leaving the world a little (or a lot) better in some way than we found it, leaving a positive footprint or legacy behind us. 

Cultivate more than one source of meaning 

For many expats developing their careers is the core purpose of moving abroad and they find meaning in making that a success. 

However, research shows that having several concurrent sources of meaning, rather than one primary one, is beneficial for wellbeing and can increase resilience.  It provides a firmer foundation. If one source is threatened, say we lose our job, others are still there to help us carry on!

Having a strong foundation of meaning makes us less likely to be workaholics.

So how might you make sure your time as an expat adds meaning to your life?

1.  Craft a meaningful life as an expat 

James, an architect, was impacted by the 2008 financial crisis, when his sector took a significant downturn and he became unemployed. Realising he did not want to get stuck in work that wasn’t his passion simply for money, he decided to move abroad.

In James’ view “You have to hunt for what you want. My expat journey has given me a deep sense of fulfilment and my self-worth has increased because I’ve created for myself opportunities to move forward at work and to grow.”

After initially taking some time off to travel he landed in Kuala Lumpur. Through focus and effort he found himself a job where he could make a difference. “I went from designing barn conversions then, out of necessity, to bar work in Yorkshire to building skyscrapers in Asia. It was immensely satisfying to problem solve and see my buildings rise up. Now in Myanmar I can literally see the whole country grow.”

He went on to explain that one of the things expat life has given him is the freedom to craft his own life. “I get to do things I couldn’t back at home. And unlike home, there’s no-one here to judge you.”

For James this extends outside of work too. “It would have been easy to spend my spare time in the bars or on the beach, but I've done an MBA remotely (taking those exams at the British Council) and I am currently studying for another Masters in Real Estate, I see it as an investment to shape my future, it’s interesting and gives me something more to talk about when I meet people.” 

Looking back from the future

Where will you find fulfilment in life and as an expat?

A great activity to help you think about this is to stand in the future and look back. A couple of suggestions to try are below. You might want to do this as a written activity, one that you reflect on and add over several days.

·    Looking back to your life as a whole

Imagine you are 90 and you’ve lived a life you’ve found really fulfilling. Reflect on the following questions.:

–   What specifically brought you fulfilment?

–   What was it along the way that stood out for you?

–   What are the things that made you most proud?

–   What did you learn and grow most from?

–   How have you made a positive difference to something or someone else?

What key sources of meaning emerge for you?

Now think about what you can act on at the present time and immediate future to help ensure those sources of meaning in your life are actively nurtured.

·    Looking back to your current expat assignment

You can bring this activity a bit closer in time to help you think specifically about your current expat assignment. For example, imagine you’ve come to the end of your assignment and you are about to move on. Ask yourself the questions above to proactively think about the ingredients that will make your time as an expat meaningful and fulfilling. 

Looking forward can help your move back

Alexandre who has had multiple expat assignments over the course of his career advised pro-actively looking ahead.

If you are on assignment for three years and then moving back to your previous place of work and home – really think about and plan for that. “After an expat assignment your horizons are broader. You are not the same.”

So think about how you can make being back at home meaningful. 

2. Know your assignment’s true purpose 

All the people I interviewed were clear - it’s important to know your real motivation for being an expat. Have goals you are moving towards rather than running away from difficulties. This helps you make choices and anticipate and navigate challenges.

Your purpose may change over time and as you move through different life stages. When you are younger your primary motivations may be to earn money and see the world. As you get older your motivations may shift to more specific and strategic growth of your career and, if you have a family, providing for them in the short and longer-term.

Of course people go on expat assignment for different reasons. Here are some of the driving purposes we heard:

Building something from nothing 

For Alexandre the motivation for a move to Barcelona was clear: “I went for the mission not the city.”

“My firm had been talking about setting up a centralised European support function. In Business operations, we had been discussing the need to harmonize our approach for years. But breaking away from our usual national operations was a larger cultural change. I was offered the chance to take it on, move to a new country, set up a plan, design processes, create an international team and implement the changes across all countries.”

This assignment was a challenge for his most important relationship too, his marriage. His wife, a Doctor, had career goals of her own and to fulfil those she needed to stay in Germany. So they agreed Alexandre would move to Spain alone for three years.

“It was challenging for us” he said. “But I had no doubt we could make it work because we knew why we were doing it.” 

Accelerating your career 

For some of our interviewees accelerating their career has been a motivation. Being an expat has been key to that.

For many the boost to their careers while living overseas was something they could not have achieved staying in their home country. James for example was able to get involved in bigger and more complex projects sooner than he would have been able to at home in the UK. 

Creating a better future for your children

All the expats with children that I spoke to felt strongly that the current and future happiness of their children was a key driver.

They all found meaning in seeing their children learn about different cultures, adapt to new environments and speak other languages. Believing this would help prepare them for a future in an increasingly global world.

Gaelle, a lifelong expat, was also clear that this may mean you need to pause your assignments for your children. “My children are becoming teenagers and for that stage I believe they need a more stable foundation as they face important exams and develop into young adults, so for the next few years we’ll be based back in France. After that – who knows!” 

Purpose as a trailing spouse

Gaelle has had times as an expat where her work has driven their family’s move and times when they moved because of her spouse’s career. Even in the latter case, she said having a clear sense of purpose matters, which can be hard if you’ve put your own career goals on hold. Her advice was to keep in mind that it is for a fixed period only and find ways to make it a meaningful time for you too.

For example, in a move to China, Gaelle knew even if she couldn’t pursue her career within her previous sector, for her, finding work was important. She found a job in a new ‘field’ that opened new avenues and learning, even if it wasn’t on the path she planned. This work change in China did reveal to be the beginning of a new career path in a new ‘sector’ much more meaningful than the industry she was working in the precedent years.  

If, as a trailing spouse , you can’t or don’t want to work, find meaning in other ways such as through getting involved in local activities, developing a new skill or hobby, learning to speak the language or through volunteering for good causes. 

Ask yourself ‘Why? Why? Why?....’

What are your motivations for your expat assignment? What comes readily to mind? List these things down.

Now take each thing you’ve listed in turn and ask yourself ‘Why?’ When you’ve answered that, ask ‘Why?’ again for that response. Continue asking ‘Why?’ until no more responses emerge. It’s likely then you‘ve got to your underlying or true motivation.

For example, if one of your immediate answers is to make money. Your answer to the first why might be because it feels and looks good! The next why might reveal that money gives you freedom and security. The next why uncovers that you feel it will give you more choice over what you do in the future, unlike your parents that had to work hard all their lives in jobs they weren’t happy in. Your final why might expose the desire to have enough time to pursue a passion or dream that is important to you. And so on…

Once you are clear on your underlying motivations, you know your real ‘why’ or ‘whys’ – it enables you to plan for and prioritise what matters most.  

3. Open your mind and horizons

Several of the expats interviewed found meaning in ways their assignments expanded their minds as well as their horizons.

Exploring the possibilities your new location offers, beyond your existing interests can be rewarding, adding texture to the tapestry of your assignment and life.

Being open to what’s new to you can be a boost for creative thinking too!  

Having adventures

“You feel like you are living a life rich in experiences and it feeds you. The world is very big!” remarked Gaelle. There are everyday adventures, opportunities to do and try new things. To bigger adventures visiting places you wouldn’t have ever got to if you weren’t an expat. “We’ve had family trips to the West of China, we’d never have had those experiences if we’d stayed living in our home country. And we carry those experiences with us.”

James bought a motorbike and spent his weekends exploring the countryside and towns around where he was living. Often, he’d do this with a friend he’d made, often a fellow expat from a different background. “Not only were we able to explore, but the experiences we had together created a meaningful friendship. 

Getting to know a country’s roots

Some expats I interviewed felt that working and exploring overseas was a core part of who they were, their personality.

Rifka noted that for her a fulfilling highlight as an expat is the learning curve. “Wherever you go you learn a new cultural approach. It opens your mind. It’s never enough. I’ve worked overseas my whole career and I’m still learning. It’s exciting!”

Giving back

Finding ways to contribute to charitable or other good causes locally can be a source of meaning outside of work in several ways. In addition to making a difference, it can be a way to do something with your family or to meet other expats and locals or even a way to combine being physically active and being in contact with nature.

For example, Gaelle and her family got involved in beach clean ups in Qatar and supporting elderly locals in China.  

Do something different

Human beings are creatures of habit – our brain is designed to automate where it can. For example, after a short period in a location we establish a routine. Maybe walking the same way to work or going to the same coffee or lunch spot every day.

Whilst this can be great for establishing yourself in a place and building local connections, it can also mean we aren’t opening our horizons. We stop noticing what’s new, interesting or beautiful around us.

So try mixing it up:

• Take a different route to work once a week
• Go out of your way to try a different lunch spot – or at least a different dish at your favourite place
• One weekend a month plan an adventure to somewhere new
• Learn to play a musical instrument or to cook the local cuisine or even a local craft
• Take a class in something you’ve not tried before
• Try a different type of book or news channel to what you normally enjoy
• Once a month go to a different type of cultural event.

The world is a big place if we choose to explore it!

Meaning for life

When we think of happiness what most readily comes to mind is usually pleasure and enjoyment in the present.  That is important.

But science shows it’s not enough for a truly happy, healthy, well-lived life.

Fulfilling our purpose and nurturing the other sources of meaning in our life is for the long term and isn’t easy. It often requires us to overcome obstacles, deal with challenges from outside and inside us, and to move beyond what we already know.

Back to Alexandre and his move to set up a new international shared service centre. Something that neither he nor his employer had tried before.

“It wasn’t easy and there were many challenges along the way.” But as he explained “You don’t do it for the moment, you do it for the after.”

“The pain is temporary, the pride in what you achieved is forever.”

Want more information and ideas on expat happiness? The Allianz Care Expat Happiness Hub contains more practical articles, webinars, and our Happiness Habits quiz to help you track the things you do that have been shown to contribute to expat happiness.

For more topics like this, visit our Happiness Hub

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Definition of expat

• emigré

Examples of expat in a Sentence

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'expat.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

1962, in the meaning defined above

Dictionary Entries Near expat

Cite this entry.

“Expat.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/expat. Accessed 26 Apr. 2024.

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Nglish: Translation of expat for Spanish Speakers

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