Sponsored

The uncertain business of international removals and relocation

The current state of the economic markets across Europe has led to no small amount of uncertainty both for companies and their employees, and this pressure has extended to affect living arrangements, relocations and the companies who carry out international removals services.

Global markets

While globalisation of financial markets and is ongoing we still don’t fully appreciate how changes in finance and banking can alter the movement of employees between countries, and thus either subtly or dramatically affect country-specific businesses and economies. The international removals and relocation market can, however, act as a fair indicator.

Reports have suggested that relocation companies have seen up to a 35% reduction in business, with this drop attributed to similar drops in the numbers of people being transferred across countries for work purposes (see previous data from pre-2010). Industry research certainly suggests that it all comes down to company investment, and there are positives: with uncertain conditions at home many companies are investing more into international projects in order to try and take advantage of differing markets.

Fluctuating finance

During the recession the money markets become incredibly important to would-be movers. Currency fluctuations can dramatically alter the ‘bang you get for your buck’ when transferring money, with exchange rate movements potentially causing a European property valued at €250,000 to vary in cost by ±£6,000.

Talking of money, investment and property opportunities abroad are still viable but special considerations do apply. Some countries limit or even prohibit ownership by foreign nationals and many restrict the movement of ‘profits’ out of the country, while taxation can be complicated.

An example from Europe

Spain, a popular destination for UK expats, has reportedly seen an increase of family relocations, with whole family units moving for employment opportunities. However retirement movers have seen an additional squeeze from the recession, with proposals for increased pension payments for overseas UK citizens combining with an increased cost of living in the Iberian peninsula leading to many expats below the recommended European ‘minimum income’.

Spain also sees great fluctuations in prices, both of property and commodities, across regions and cities – but this does leave ‘cheaper’ areas within reach of most – and countries such as Malta have seen increased popularity because of financial incentives targeted at property and international investors.