As specialists in international legal recruitment over many years, we have long maintained that money alone should not be the sole reason for making a cross-border move. We regularly produce articles on the professional and lifestyle advantages of working overseas but this time…it’s unashamedly, all about the cash!
We raise this most basic of motivators for the simple reason that the post-Brexit slump in Sterling has made foreign earnings more attractive than they have been in many years. Take a look at the table below:
| Jurisdiction | Salary (3 pqe)1 | Sterling Value2 | Tax-rate |
| London | £85,000 | £85,000 | Up to 40% |
| Cayman Islands | USD 145,000 | £118,000 | Zero |
| British Virgin Islands | USD 135,000 | £110,000 | Up to 8% |
| United Arab Emirates | AED 500,000 | £111,000 | Zero |
| Singapore | SGD 200,000 | £118,000 | Up to 17%3 |
| Hong Kong | HKD 1,092,000 | £115,000 | Up to 17%3 |
(1) Average salary for 3 years’ pqe lawyer in UK/City equivalent firm
(2) Rates according to xe.com as of 1st November 2016
(3) Progressive tax system climbing to 17% in HK and up to 20% in Singapore
Of course, these are not inexpensive places to live, but the comparison between your net income in London and your net income in any of these jurisdictions shows a stark contrast that no cost of living survey will eliminate. For example, a UK-based lawyer on standard tax code will need to earn almost £210,000 to net the £118,000 that you can earn at three years’ pqe in Cayman. A sobering thought for your average Junior Partner in the City to ponder.
As many London-based lawyers struggle to pay a mortgage or even fund a deposit on a home in the city, the attraction of sending home Dollars or Dirhams that are worth many more Pounds than they were in May is clear. Save 20% of your tax-free or low-tax salary and you can bank well over £20,000 in a year while benefitting from a life-changing professional and personal experience.
So once again, an international move shouldn’t be all about the money…but it doesn’t hurt does it?
To discuss international opportunities please contact Jason Horobin at [email protected] or on +44 (0)1206 233 514.
