Where Expats Love (to Hate) Their Finances
Top Findings
- The top 3 countries have been in the top 10 consistently for four years or more.
- Five out of the bottom 10 countries are found in Europe, with Italy ranking last.
- In #1 Vietnam, three times the global average have an annual income of over 250k USD (9% vs. 3% globally).
- Expats in Mexico (#2) and Colombia (#3) benefit from low costs.
- Kuwait’s second-to-last place is its worst result in the Personal Finance Index since 2014.
Methodology
The Personal Finance Index includes 59 destinations featured in the Expat Insider 2021 survey, each with a sample size of 50 respondents or more. This index covers two questions: “To which extent would you agree with the following statement? I’m satisfied with my financial situation.” and “Do you feel that your disposable household income is enough to cover everything you need for your daily life?”. The Cost of Living Index, which is also referenced in this article, reflects respondents’ satisfaction with the cost of living in their host country. Provided as additional information, the index does not factor into the overall country ranking.
Vietnam Is in the Lead
Vietnam comes in 10th place out of 59 countries overall but places 1st in the Personal Finance Index and the Cost of Living Index. The country has consistently ranked in the top 10 for both indices since 2014. Three-quarters of expats in Vietnam (75%) say that their disposable household income is more than enough to cover everything they need for daily life (vs. 52% globally). In fact, 90% say it is enough or more than enough (vs. 77% globally).
Close to one in ten (9%) also say their gross income is more than 250k USD a year (vs. 3% globally)! With a share of 45%, expats in Vietnam are more likely than average to have moved there for job-related reasons (vs. 36% globally), which might be a reason for some of these higher incomes. But it surely also doesn’t hurt that 85% of respondents in Vietnam rate the cost of living favorably, 41% even very much so (vs. a global 48% and 14%, respectively). A US American expat states, “I like the cheap cost of living, friendly people, good food, relaxed atmosphere.” Still, 11% of expats in Vietnam say the current biggest personal impact of the pandemic is on their personal finances (vs. 8% globally).
I like the cheap cost of living in Vietnam.
Mexico: Profiting from Low Costs
Mexico comes in 2nd place out of 59 countries overall as well as in the Personal Finance Index and has been consistently in the top 10 for both since 2015. Four in five expats in Mexico (80%) are generally satisfied with their financial situation (vs. 64% globally). Furthermore, 63% of expats in Mexico say that their disposable household income is more than enough to cover everything they need for daily life (vs. 52% globally). A French expat claims that she likes, “the people, food, culture, entertainment options,” and how, “it is all cheap!” In fact, 79% of respondents rate the cost of living favorably (vs. 48% globally). Close to two in five (39%) even say it is very good (vs. 14% globally), placing the country on fourth rank in the Cost of Living Index.
Close to one in ten respondents (8%) share that the main motivation for their move to Mexico were financial reasons (vs. 3% globally), while only 26% relocated for job-related reasons (vs. 36% globally). Luckily, a below-average 6% of expats in Mexico say the current biggest personal impact of the pandemic is on their finances (vs. 8%).
Colombia: Great Finances despite Low Incomes
Colombia just missed its spot in the overall top 10 countries, coming in 11th place out of 59 destinations. However, Colombia ranks third in the Personal Finance Index 2021 and has been consistently in the top 10 of this index since 2017. Over three-quarters of expats in Colombia (76%) are generally satisfied with their financial situation (vs. 64% globally), two in five (40%) even completely so, which is almost double the global average of 23%!
A Venezuelan expat shares how Colombia “is not expensive compared with other countries in the region”. Others agree: 63% of expats in Colombia say that their disposable household income is more than enough to cover everything they need for daily life (vs. 52% globally). Furthermore, Colombia has also been consistently in the top 10 in the Cost of Living Index since 2017. Over four in five respondents (81%) rate the cost of living in Colombia favorably (vs. 48% globally). Three times the global average even say it is very good (42% vs. 14% globally). However, only about half the expats in Colombia (51%) are working (vs. 67% globally), and the majority (68%) say their gross yearly income is below 50k USD (vs. 51% globally).
Unsatisfied Expats in the Bottom 3
Italy (59th), Kuwait (58th), and Cyprus (57th) perform the worst and make up the bottom 3 of the Personal Finance Index 2021. Italy has been in the bottom 10 of this index since 2014, and this is the second time that Cyprus has received this dubious honor. However, this is Kuwait’s worst result in the Personal Finance Index since 2014.
Three in ten expats in Italy (30%) are generally dissatisfied with their financial situation (vs. 19% globally), and the majority (65%) say their gross yearly income is below 50k USD (vs. 51% globally). A British expat says that the “economy is terrible, and salaries are low”. Expenses, at least, are mostly average in Italy, with 47% of expats rating the cost of living favorably, which is about the same as the global average of 48%.
Italy’s economy is terrible, and salaries are low.
In Kuwait, over a third (35%) find that their disposable household income is not enough to cover everything they need for daily life (vs. 23% globally). Kuwait has also been consistently in the bottom 10 of the Cost of Living Index since 2018 and ranks 53rd out of 59 in 2021. The majority of expats there (55%) rates the cost of living negatively (vs. 34% globally), potentially bad news for the 13% of expats who gave financial reasons as their main motivation for the move (vs. 3% globally).
In Cyprus, close to three in ten respondents (28%) are generally dissatisfied with their financial situation (vs. 19% globally), and 70% say their gross yearly income is below 50k USD (vs. 51% globally). Results for living costs are closer to average: 42% rate them positively (vs. 48% globally).
Trends in the Top & Bottom 10
Four out of the top 10 countries in the Personal Finance Index are found in Latin America — Mexico (2nd), Colombia (3rd), Ecuador (5th), and Costa Rica (7th) — while first-ranked Vietnam is joined by fellow Asian destinations India (4th), China (6th), Malaysia (9th), and the Philippines (10th). Except for Romania (8th), no European or African countries have made it into the top 10.
Things look different at the other end of the ranking, though: five of the bottom 10 countries are found in Europe: Italy (59th), Cyprus (57th), the UK (53rd), Greece (52nd), and Malta (51st). They are joined by two GCC States: Kuwait (58th) and the UAE (56th).
Where Costs Are Low/High
With seven destinations, the majority of the top 10 of the Cost of Living Index 2021 are found in Latin America or Asia. The odd ones out are Ukraine (3rd), Hungary (8th), and Portugal (9th).
Vietnam (1st) has ranked in the top 5 of the Cost of Living Index since 2014; 85% of respondents rate the cost of living there favorably (vs. 48% globally). Over two in five (41%) even say it is very good, close to three times the global average of 14%. Over four in five respondents in Malaysia (82%) also give the local costs a favorable rating, helping the country to second place in the index. And in third-placed Ukraine, 39% agree that expenses there are very low (vs. 14% globally).
Destinations that are infamous for their high cost of living populate the bottom 3 of the index: last-placed Hong Kong (59th) is joined by Switzerland (58th) and Norway (57th). In Hong Kong, over three-quarters of expats (78%) rate costs negatively, compared to just 34% of respondents worldwide. And in all three destinations, more than double the global average of respondents give the worst possible rating for this factor.
