Expatriate Assignment Cost Analysis: How ACE With Consult Reduced Mobility Spend

Managing international assignments is expensive—and without a clear understanding of the total cost of expatriate packages, companies risk overspending. This is especially true for senior-level relocations between high-cost countries like the U.S. and Germany.

A global organization recently approached AIRINC for a comprehensive expatriate assignment cost analysis before relocating a U.S. executive to Germany. They wanted to evaluate the financial impact of the assignment and identify a more sustainable, strategic approach to global mobility.

The Problem: Uncertainty Around Expat Assignment Costs

The client was considering a 3-year home-based expatriate assignment. However, concerns arose about whether the assignment was financially viable, particularly given the high cost of living in Germany and the complexity of tax and benefit obligations. They needed:

• A detailed cost estimate for home-based tax equalization

• Clarity on tax obligations, social security agreements, and relocation costs

• Alternative models, like the host-plus (local-plus) assignment approach

The Solution: Cost Modeling with AIRINC’s ACE With Consult

AIRINC's ACE With Consult service specializes in helping companies evaluate and compare global mobility costs using real-time data, tax expertise, and strategic planning. Here’s how we supported the client:

1. Traditional Home-Based Assignment Cost Estimate

• Complete cost projection: Including relocation, housing, COLA, private education, automobile allowance, and repatriation

• Tax equalization modeling: AIRINC’s tax directors analyzed U.S.-Germany tax obligations, totalization agreements, and tax residency rules

• Currency fluctuation analysis: Modeling exchange rate risks and financial implications

2. Host Plus (Local-Plus) Assignment Cost Estimate

• Local compensation with strategic top-ups: Including a calibrated housing subsidy and necessary allowances

• Assignment-end cost modeling: Covering repatriation and reintegration

• Tax consultation: Evaluating implications for both employee and employer under a host-based model, including residency breaks

Read more from our recent download on home-based and host plus assignments options here.

The Results: 28% Reduction in Assignment Costs

ACE With Consult’s analysis revealed that while the traditional home-based tax equalized expatriate assignment would be costly—approximately 3.2 times the employee’s home-country compensation—there were viable alternatives. By adjusting the compensation structure and shifting to a Host-Plus model with a modified benefits package, the company could reduce overall costs by 28%, while still maintaining the value and strategic goals of the assignment.

Business Benefits: Smarter Global Mobility Planning

What stood out most from this example was the shift in how the client approached mobility planning. Instead of treating the assignment as a fixed-cost inevitability, they used our insights to make a truly informed decision—one that balanced talent needs with financial stewardship. With ACE With Consult, we didn’t just deliver numbers; we provided clarity. The client walked away with a deep understanding of the full cost landscape, from tax and compliance risks to currency exposure and allowance structures. They now have a repeatable framework for evaluating future assignments, grounded in data and shaped by strategy. Most importantly, they avoided unnecessary overspending and gained the confidence to move forward with international assignments that align with both budget and business objectives.

Conclusion: Make Your International Assignments Strategic and Sustainable

Whether you're planning a relocation to Germany, Singapore, or anywhere in the world, the right cost model makes all the difference. With AIRINC’s ACE With Consult, organizations can shift from reactive cost management to strategic international assignment planning.

By leveraging detailed expatriate assignment cost modeling and our global tax expertise, we help companies turn cost concerns into competitive advantages—ensuring every international move is both efficient and effective.

Want to explore how AIRINC can help you evaluate your expat assignment costs?

Contact me today to learn more about ACE With Consult or to request a personalized cost analysis.