New Zealand ousts Canada as top expat destination

The latest NatWest International Personal Banking Quality of Life Index, which surveyed over 2,000 British expats scattered across the globe, saw Canada, the 2008 leader for expat quality of life, slip to second place.

Based on the rating of six data sets, the index examines: the extent of perceived reduction in quality of life and home decline, the value of sales and retirement funds sliding, the likelihood of loss of employment and level of confidence in their future in the country where they are living.

While Australia, France and the United Arab Emirates make up the rest of the five favourite destinations, Spain, South Africa, the USA, China, Singapore and Hong Kong complete the top 12.

Expats in New Zealand rated it highly across almost all life experience factors including income. It also has the lowest cost of living out of the countries surveyed.

With one of the lowest property values, equivalent to just £111,000, plus a favorable tax regime, expats' money goes further with the highest tax band at 39%.

Australia has the highest income tax band, of 17% to 45%, while Singapore has the lowest of 3.5% to 20%.

The survey also found, nine in ten expats believe they are financially better off abroad despite the global economic downturn. Nearly 80% of expats now earn between £50,000 and £85,000 a year, indicating the benefits of working abroad are still huge.

Just under 40% of expats rate their net worth between £250,000 and £500,000, with approximately one quarter having a net worth of £500,000 to £1m. However, six in ten expats left the UK with less than £5,000 in savings, the survey reveals.

As a result of higher incomes, almost 40% of UK expats rate the quality of life as the top factor that convinced them to move abroad. Just under 30% of expats cited the standard of living and 17% the cost of living as key factors that made their minds up.

While almost half of UK expats say their move was prompted by their employer, 53% took the initiative to make the move on their own. More than six out of ten expats cited "feeling dissatisfied" as the reason they made the move.

Over 90% believe they have a better quality of life abroad, nearly 70% say they live healthier lifestyles and approximately 60% say the cost of living is lower than in the UK.

"Despite the global slowdown affecting everyone, the potential to earn more money abroad is clearly one of the main benefits that UK expats are experiencing," says Dave Isley, head of NatWest International Personal Banking.

"The fact that this study has indicated that most UK adults leave the country with less than £5,000 in cash, but that their net worth abroad is largely between £250,000 and £1 million is impressive and should not be underestimated," he says.

Categories: Offshore Investment

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