The clear-eyed guide to comparing a move abroad
A practical framework for comparing salary, tax, social insurance and living costs without fooling yourself.
A bigger foreign salary does not automatically mean a better life—and a lower tax rate does not automatically mean more disposable income. A useful comparison keeps tax, compensation and cost of living separate until the final step.
Start with two real offers
Currency-converting your present salary answers a tax-system question, not a job-market question. When possible, compare the gross compensation you could actually earn in each location, including fixed allowances and mandatory bonuses.
- Base salary and guaranteed bonuses
- Employer pension or retirement contributions
- Health insurance and paid leave
- One-off relocation support
Model residency before rates
Income tax normally follows tax residence and source rules—not citizenship alone. Confirm when residence begins, whether split-year treatment exists, and whether your former country continues to tax particular income.
US citizens and green-card holders are a major exception because federal filing can continue abroad. Treaty relief, the foreign earned income exclusion and foreign tax credits are separate calculations.
Compare disposable income last
After estimating payroll deductions, add rent, healthcare, childcare, transport, visa costs and trips home. Treat PPP indices as orientation, then replace broad indices with your own likely budget.