Local or Expat Engineer. What's the Difference and Which is Better?

When it comes to work, there are two key terms: local employee and expat. In this article we’ll discuss who these people are, the difference between them, and how becoming an expat can significantly increase your salary.

So, what is a local employee? A local is someone who works under the conditions of local staff in a company. Usually, this means citizens of the country or those with a residence permit and work authorization in their native country. An expat, on the other hand, is any employee who has moved to work in a foreign country. Both a janitor and a CEO can be considered expats if they relocate for work. If you move to another country for work, you're an expat. However, if you get a residence permit and a work visa, you might work under local conditions with a regular contract, similar to immigrant who permanently settle and adapt.

But when I talk about these terms, I mostly refer to the conditions offered by a company. Positions are often labeled as "expat" or "local". Local employees generally have significantly worse conditions compared to expats, if you are not in the UAE, Kuwait, Qatar, Oman and some other countries. Companies have expat positions to attract highly qualified specialists they can't find locally. This means the company is willing to provide additional incentives through an expat package, which can include many benefits like a high salary, bonuses, housing allowances, family status support, relocation expenses for your family, school and daycare fees for your kids, health insurance, a company car, transportation allowance, furniture allowance, and many others. For local employees, companies typically offer just a salary and maybe a bonus. Other expenses are usually their responsibility.

Job descriptions often make it hard to find if a position is "expat" or "local". In short, most job postings in Europe, the USA, Canada, and many countries in Asia are for local conditions, meaning you need work authorization in that country. So companies don’t cover full family relocation and other expenses. Conversely, most jobs in Arab countries are "expat" positions. However, an expat job doesn't automatically mean family relocation and other perks; packages vary. Sometimes you might get a few thousand dollars and have to cover all costs yourself.

This is why I prefer Arab countries. For example, if you’re offered a $10,000 monthly salary in Europe and the Middle East, in Europe, you'll pay 30-50% in taxes. You’ll also need to rent an apartment and pay for your kids’ schooling, leaving just little to save. In most Arab countries, there’s often a 0% tax rate. The company covers your rent and school fees, so from your salary, you only need to deduct daily expenses like food, clothing, and entertainment. That’s why many Europeans, Canadians, Australians, immigrants and Americans go to Arab countries to save money since they can't save much at home while living abroad.

I have a separate video on my Youtube Channel about the work in the Middle East:

Why do I emphasize rent and school expenses?

Because these are the biggest expenses. In developed Arab cities like Dubai, Abu Dhabi, Doha, Muscat, Kuwait, Manama, and so on, renting a two-bedroom apartment can cost $2-3-4,000 per month, and good English-language schools can cost over $1,000 per month. So, when negotiating terms and conditions with an employer, consider not only your monthly salary but also what else they will cover and what’s included in the expatriate package.

So guys, working as an expat in countries with no taxes can significantly boost your salary. Each country has its own tax laws, so it's best to consult a tax advisor to ensure you don’t have to pay income tax in your home country and understand how to handle this properly.

I believe working and living abroad on expatriate terms is a fantastic opportunity for the whole family. And if you get such a chance, I highly recommend trying it—it’s a great experience and helps you develop language skills, adapt to new cultures, and understand life in a foreign country.