Many organizations underestimate the true cost of international assignments. Salary is only one part of the picture—there are often significant hidden costs, from relocation to education to long-term support. Failing to plan for these can impact budgets, employee satisfaction, and the success of the entire move.

This is the forth post in our Simplifying Cross-Border Moves series, inspired by our in-depth white paper and recent webinar. We’re here to share key tactics mobility teams can use to understand the true cost.

What’s Really Driving Costs?

Tax Obligations

Taxes are one of the most complex and costly aspects of global mobility. Assignees may face liabilities in both the home and host countries, creating risks of double taxation. To protect employees, companies often provide tax equalization or protection, cover professional tax support, and factor in treaty limitations. Failing to plan for tax compliance can lead to penalties and unexpected financial burdens.

Relocation and Travel Expenses

Assignments typically include pre-assignment visits, airfare for employees and families, shipping household goods, temporary housing, and visa or immigration fees. These costs can escalate quickly, especially for moves involving multiple family members or long distances.

Assignment and Mobility Support

Support services such as cultural training, language lessons, destination assistance, and spousal support may seem optional, but they are crucial for successful integration. Investing in these areas improves assignment success rates and helps retain talent.

Housing and Cost-of-Living Allowances

In many global cities, housing costs are significantly higher than in the employee’s home country. Employers often provide housing allowances or directly cover rent. Cost-of-Living Allowances (COLA) may also be added to balance the price differences in daily goods and services.

Education Costs

For families with children, access to quality schooling is a top concern. Tuition at international schools, enrollment fees, transportation, and related expenses can be substantial. Employers must plan for these costs, particularly in locations with limited local school options in the assignee’s preferred language.

Final Thoughts

Budgeting for international assignments goes far beyond salary. From tax compliance and relocation logistics to housing, education, and cultural support, every element plays a role in the success of an assignment. Organizations that plan holistically are better positioned to manage costs and ensure a smooth, effective experience for their employees abroad.

Simplifying Cross-Border Moves: Where Do You Start?

This is just one area we explore in the paper. We also cover compensation, selecting assignees, and supporting assignees throughout their journey. Subscribe to our blog to see all the updates. Download our guide “Simplifying Cross-Border Moves” or watch the webinar recording to explore practical strategies.

If you’re looking for a quick refresher on global mobility fundamentals, visit AIRINC’s Global Mobility Education Knowledge Base. Whether you’re new to mobility or a seasoned professional, it’s a helpful explainer of the nuts and bolts of global assignments.

If you’d prefer to talk, I’ve helped many organizations work through tax challenges and would be happy to explore solutions for your mobility programme. Contact me.

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