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How To Avoid Unexpected Relocation Costs

How To Avoid Unexpected Relocation Costs

Investing a little time and effort during the early stages will pay dividends and ensure your employees are relocated with the minimum of anxiety and without unexpected surprises for the company.

We have previously written about 5 key areas you should consider before embarking on a relocation journey abroad, but in this piece, we will look at the element of cost in a little more detail.

If managed incorrectly, unexpected costs can make a relocation more expensive than you first anticipated, both for the company and the employee. Make sure you have all bases covered and work out exactly what costs you are likely to incur when sending employees overseas. Choose to partner with a relocation company that provides cost estimates for your various scenarios.

Cost of living index 2016

Cost of living index 2016

To calculate each city's Cost of Living Index value, Expatistan starts by assigning a value of 100 to a central reference city (that happens to be Prague). Once the reference point has been established, the Price Index value of every other city in the database is calculated by comparing their cost of living to the cost of living in Prague.

Therefore, if a city has a Price Index of 134, that means that living there is 34% more expensive than living in Prague.