There are plenty of cities that are frequently declared to be expat havens, offering a high quality of living and a vibrant international community to help new residents from all over the world feel at home. But if you’re a finance professional looking for your next step, there are other factors to bear in mind when you’re deciding where to relocate to.
As well as setting your sights on the world’s global financial centres, it’s important to look into the typical salaries on offer for finance professionals at your level in different locations. You may also wish to consider what personal income tax you’ll need to pay, and the economic stability of your potential new home.
For financiers just starting to research their options, here’s a look at some of the best cities in the world for people working in the finance industry.
Frankfurt
Often cited as the finance capital of Europe, Frankfurt is home to the heart of the European Central Bank and German Central Bank, as well as the Federal Financial Supervisory Authority. The city’s ‘House of Finance’ research and teaching institute is said to set new standards in researching capital market issues, and a number of banks looking to relocate from London as a result of Brexit have decided to move their teams to Frankfurt because of its status as a financial powerhouse.
Data from PayScale and SalaryExpert places Germany in the top 10 countries worldwide when it comes to average pay for both Finance Managers and Financial Analysts, while additional data suggests that expats living in Germany also have a higher level of disposable income than those in other finance hotspots like Singapore and Hong Kong.
Aside from the ease with which you could find a job in Frankfurt’s finance sector, it’s also a trendy and welcoming city with plenty of great food, drink and shopping potential, as well as historic sites and cultural activities to enjoy.
Singapore
Salaries for financiers living in Singapore are generous, and this city-state is also known for being a safe location and one with an excellent quality of life. Rated as the second best place in the world for expats by HSBC’s Expat Explorer survey, this is a politically and economically stable location where career opportunities mix perfectly with an expat-friendly environment.
In 2018, the number of jobs in financial services and fintech in Singapore grew by 6,900, with an additional 4,000 financiers being hired during 2019. Salaries are comfortable, though it’s worth noting that the cost of accommodation and services varies from district to district and can be high.
You may also need to take out a global healthcare policy to cover any medical expenses while living in Singapore, because only those who are permanent residents or citizens will have access to the public healthcare system. Even so, Singapore’s private healthcare system is of a world-class standard and is only slightly more expensive to access than the country’s public healthcare system.
English is the language of business, which makes settling in to a new role that little bit easier, and if you’re moving with children in tow you’ll be pleased to know that HSBC’s Expat Explorer ranked Singapore in first place for both schooling quality and childcare quality.
Hong Kong
Whether you work in brokerage, banking, wealth management or another area of finance, Hong Kong is a gateway to China that offers a rapidly growing market for finance roles. If you speak Cantonese you’ll be at an advantage, but there are also positions available for solely English-speaking expats.
Hong Kong is known for being busy and crowded, and the cost of living is high. However, it does also have some of the lowest personal income tax in the world – currently capped at a maximum tax rate of 17% of earnings. A colourful culture and lively nightlife are just a few of this region’s selling points, along with an excellent public transport system that means you won’t have to spend your salary on personal transport.
70 of the world’s 100 largest banks have operations in Hong Kong, making it one of the highest concentrations of banking institutions worldwide. HSBC’s Expat Explorer rates this location as the best in the world for expat career progression, and states that ‘most international workers tend to leave Hong Kong wealthier and more senior’ than when they arrived.
Dubai
One of the main attractions for many people moving to Dubai is the fact that there is no personal income tax. This is because government expenditure is funded by revenue from the oil industry, income tax, inheritance tax, stamp duty and capital gains tax, which are all considered unnecessary. On top of this, it’s easy to get by without speaking Arabic – though it is, of course, polite to try and learn the basics.
Dubai has been making considerable efforts in recent years to become the financial centre of the Middle East, and the Dubai International Finance Centre is a ‘special economic zone’ with its own legal and regulatory framework. Housing hundreds of financial institutions, from wealth funds and private investors to multinationals, the area offers a 50-year guarantee of zero taxes on corporate income and profits.
One thing that’s important to keep in mind if you’re considering Dubai for your next career move, is that this is a conservative location with deeply ingrained customs and laws that may be unfamiliar if you’re moving from the western world. Female expats in particular should thoroughly research the local culture before a move, as while Dubai is more liberal than other parts of the UAE, there are still requirements for women to dress modestly in public, among other things.
Tokyo
Japan is one of the world’s safest countries, and while there’s likely to be an element of culture shock settling in to a place as bright and bustling as Tokyo, this is another area offering a good quality of life and opportunities for career progression.
More than 50 foreign banks have operations in Japan, including Citibank, Deutsche Bank and JPMorgan Chase, and Tokyo is the centre of all things finance in the country. Described as a ‘key financial centre for the international market’ , Tokyo does have a high cost of living to accompany the high salaries you can expect to find here. However, you can still expect to have a reasonable level of disposable income.
When you aren’t working, you can spend your time between historic temples or modern shopping malls, or simply eat your way around the city’s many excellent restaurants and street food stands. Tokyo’s work-life balance isn’t quite as life-focused as that of other cosmopolitan cities, but as a destination that is more politically and economically stable than the UK and the USA, you may find life in Tokyo less stressful in many ways than life elsewhere.
Your specific finance role and whether you’re moving alone, with a partner or with family, will help to indicate the location that’s best for you. Wherever you decide to move to, the good news is that there are plenty of cities around the world which can simultaneously offer you good career opportunities, a high standard of living, and room to develop both personally and professionally.