I've been offered a management position with my company in their Shanghai office. Salary is $115k USD per year including fully paid medical benefits. I have lived in NYC my whole life so I am used to living in a very expensive city ($115k doesn't go very far here). What type of lifestyle is possible on this salary in Shanghai. I am under 30, single, and have no major financial obligations (Mortgage, debt etc.) in the U.S.

Thanks.

Same here

~$10K/month would be quiet sufficient here in my opinion.. Assuming that this amount is not before tax

As far as I remember, there was also another thread about similar topic in this forum (last month maybe) which had some detailed answers from experienced SH expats though..

it can get pretty expensive here, but cheaper than new york. you'll probably be able to have 5 more servants and wipe your ass with 50s instead of 20s.

don't come here, that budget is just laughable. you will sleep in a cardboard box underneath a bridge and eat out of dumpsters!!

or... RESEARCH THIS SITE! there are endless discussions and threads about his topic.
what a tool... really surprised anybody pays you that money.

no it's OK, jeff is in Florida and can sublet his cardbord box

You can check prices of various items by looking up
http://www.ubs.com/1/e/investors/releas ... sId=170250

In general, at 110k/yr level, if you replicate exactly your nyc lifestyle in shanghai it will cost more.
The marginal income tax rates in China is higher than US, (even with NY supplement).

However, if you are somewhat flexible in your lifestyle and get tax planning advice on how your package is structured.
Your money will go further in Shanghai

This figure is AFTER Tax, and company is covering my entire healthcare costs. Also I am being allotted $1500 USD per month allowance for housing/living costs etc.

The question is about you, not Shanghai. Some Americans earn less than 1/4 what you earn and consider they are living like kings in Shanghai. Others are earning 6 to 7 times what you are earning and keep complaining that they can't make ends meet. You should really come to Shanghai for a few weeks and get a feel for the type of accomodations you will want, the types of food you will eat, cost of entertainment and the type of transportation you will require to determine how your costs in Shanghai will compare with New York.

I have been to Shanghai many times on business, but have never had to look at Shanghai from a cost of living perspective. I don't have extravagant tastes and I like to eat the local food. I am just curious to see how cost of living compares in SH compares to a place like NYC.

I have a home in Shanghai and also one in New York.....My costs are very similar in both cities...From my experience Shanghai is by far the most expensive city in China....In New York, I know all the Ins and Outs. I would rather get poked in the eye with a stick then pay retail...... Somehow I think In Shanghai I wind up paying full retail for most things.... My rent in Shanghai is very high....and my home is nice, but its not an "Oh Wow "place.....

If you were to live in Shanghai Like a Local, then on your income you would live well.....However as an Expat you will not live high off the "Noodles"
Your housing allowence will get you something in Bayside or Kew Gardens, Not Forrest HIlls or Downtown.....It's a great city you will enjoy it...

yoyoyo1 wrote:I've been offered a management position with my company in their Shanghai office. Salary is $115k USD per year including fully paid medical benefits. I have lived in NYC my whole life so I am used to living in a very expensive city ($115k doesn't go very far here). What type of lifestyle is possible on this salary in Shanghai. I am under 30, single, and have no major financial obligations (Mortgage, debt etc.) in the U.S.

Thanks.

No family, no financial obligations and you will want to live in French Concession / Jing An in order to replicate the NYC lifestyle rather than live in a compound. By that i mean limited walking / taxi time to good restaurants and good nightlife, assuming you previously lived in either Manhattan or Brooklyn.

With your resources this is more than feasible, its near certain that you will live a great lifestyle. You will have to take a small chunk out of your salary if you want to live in a high-quality compound with adequate western services though. There are enough relevant threads here to help you out for housing.

yoyoyo1 wrote:This figure is AFTER Tax, and company is covering my entire healthcare costs. Also I am being allotted $1500 USD per month allowance for housing/living costs etc.

If it is after tax, than there wouldn't be any problem I guess.. You will live a good life here..
Btw, I don't know your housing requirements but $1500 might not be enough for housing issues.. You should negotiate it with your employer

It's enough if it's for just 1 person, and if you want to live comfortably (eg. similiar to in NY).

You'll only manage a small amount in savings each month, though, since you're only on a single income.

But if you eat at cheap places or rent a cheaper place, you'll be able to save more

HiBeverly wrote:You'll only manage a small amount in savings each month, though, since you're only on a single income.

You must be joking. Dude pulls in about a quarter mil before taxes and you think he will have a hard time saving money each month?

You can get a great apartment for $2000-$3000 . Yeah that makes about 7k for spending and savings EACH MONTH

Sometimes I wonder wtf kind of work you people do to be making such outrageous salaries!

Shanghai is not cheap! Well, depends what you do. But I assume he'll like the more western lifestyle, hence more $$.

Our apartment is 10K RMB per month, and that's after we bargained it by over 30% down. I consider this on the middle-to-low end, as many places are 20-30k RMB.

To me, a "large amount of savings" is over USD$10k per month, which is why I think he'll make a small amount if he prefers the 'nice' Western lifestyle...

This might also help:

http://www.shanghaiexpat.com/index.php? ... ic&t=95181

They didn't offer you a COLA on top of your salary? Do you get to keep the US tax credit? Are they paying your Chinese Taxes? Are they paying 1 trip a year home for vacation? Are they paying your rent?

These are normal allowances from large US companies to their expats.

Yes - we get paid a sh*t load of money but we're worth it!!!

yoyoyo1 wrote:I've been offered a management position with my company in their Shanghai office. Salary is $115k USD per year including fully paid medical benefits. I have lived in NYC my whole life so I am used to living in a very expensive city ($115k doesn't go very far here). What type of lifestyle is possible on this salary in Shanghai. I am under 30, single, and have no major financial obligations (Mortgage, debt etc.) in the U.S.

Thanks.

You won't be able to buy a Ferrari (cash) with that salary, which is terrible (if you ask me) , OTHER than that I ensure you that you will have a very, very, very comfortable life in Shanghai considering the bio you just provided. I make less than you - same bio (and I like to blow money quite a bit) and I still manage to save money every month (who knows how).
I see you in Shanghai surrounded by several chinese hookers (I mean girlfriends, ahem) like a Colombian Drug Lord, trust me with that salary you will have fun like there is no tomorrow.

LadyofLeisure wrote:They didn't offer you a COLA on top of your salary? Do you get to keep the US tax credit? Are they paying your Chinese Taxes? Are they paying 1 trip a year home for vacation? Are they paying your rent?

These are normal allowances from large US companies to their expats.

Yes - we get paid a sh*t load of money but we're worth it!!!

^These are the best questions asked you need to answer....

Has a GOOD accountant given you advice on your tax situation?

And most importantly, will you be offered Tax equalization?
How are they handling the US and ~ 40% Chinese Tax?

100K net is fine for a decent standard of living versus NY...if it is indeed 100k net after US and China Taxes.

The housing allowance will not get you much though....

Decent...nothing flash

HiBeverly wrote:Shanghai is not cheap! Well, depends what you do. But I assume he'll like the more western lifestyle, hence more $$.

Our apartment is 10K RMB per month, and that's after we bargained it by over 30% down. I consider this on the middle-to-low end, as many places are 20-30k RMB.

To me, a "large amount of savings" is over USD$10k per month, which is why I think he'll make a small amount if he prefers the 'nice' Western lifestyle...

Lady Bev....You are correct Shanghai is not cheap....I think someone is confusing RMB's with USD's..... You gave good advice....someone just doesn't get it...

For me I think the salary is not bad.

You people are idiots!!!!!
Half of you people are not even reading the post and you're talking about prices in RMB. He said USD, after tax, expenses paid.
Dude, trust me, you'll live like a king and still put money away. Your financially manageable lifestyle in New York will be laughable compared to what you can do with that amount of money here.
$1500 a month barely gets you an empty studio in Brooklyn, whereas here, that'll get you a pretty lush fully furnished 2 bedroom apartment in some fancy highrise.
Sit back, relax, and look forward to a few years of living large and saving lots, buddy.

Thanks for being so eloquent and all erinakaluhan, but I am talking in USD as well.

To each their own - some people think that is more than enough, others think it is just sufficient. That's all, no room for argument, just personal opinion from a myriad of people from different walks of life.

No need to stumble in and declare everyone "idiots" because there's only one person that reflects back on....

erinakaluhan wrote:You people are idiots!!!!!
Half of you people are not even reading the post and you're talking about prices in RMB. He said USD, after tax, expenses paid.
Dude, trust me, you'll live like a king and still put money away. Your financially manageable lifestyle in New York will be laughable compared to what you can do with that amount of money here.
$1500 a month barely gets you an empty studio in Brooklyn, whereas here, that'll get you a pretty lush fully furnished 2 bedroom apartment in some fancy highrise.
Sit back, relax, and look forward to a few years of living large and saving lots, buddy.

Don't need to drop $10 for a decent burger in Brooklyn either though...


Big factor is food imho. If you can run on 8RMB noodles every day like I do, tons of savings. If you want a nice steak once in a while, so good bye to that fairly quickly.

Let's clear this up.
You will receive 1500 USD/mo (10.2K RMB) for an allowance.
Present net is 9.6K USD/mo (65.2K RMB) which means nothing unless you will split salary between US/China, if firm agrees to do this.
Rough guess is you earn 13.3K USD/mo gross in a 30% Fed tax bracket
(90.7K RMB/mo). Will City and State taxes be levied as well if income is split?
Chinese tax would be about 24K RMB so your net is 66.7K RMB + 10.2, so total is 76.9K RMB/mo which should be OK unless you go crazy.

jay_dee wrote:Let's clear this up.
You will receive 1500 USD/mo (10.2K RMB) for an allowance.
Present net is 9.6K USD/mo (65.2K RMB) which means nothing unless you will split salary between US/China, if firm agrees to do this.
Rough guess is you earn 13.3K USD/mo gross in a 30% Fed tax bracket
(90.7K RMB/mo). Will City and State taxes be levied as well if income is split?
Chinese tax would be about 24K RMB so your net is 66.7K RMB + 10.2, so total is 76.9K RMB/mo which should be OK unless you go crazy.

Yes, indeed, let's clear this up.
OP says: "Salary is $115k USD per year.This figure is AFTER Tax, and company is covering my entire healthcare costs. Also I am being allotted $1500 USD per month allowance for housing/living costs etc."

So he's getting, in his hand, over 75,000rmb a month. That's around 2,500rmb a day...I doubt he'll have any problems buying a steak or finding a nice place to live!

Which is what jay-dee said, I hasten to add. Just trying to make it simpler for the folks who don't quite understand...

^ If that's the case.... That's awesome....

Sorry to offend Bev.
Let me clarify.
I take it back, yoyoyo1
I suppose if you are Snoop Dogg and you are used to rolling in a royce, skirting between your mansions in Beverly Hills and the Hamptons and wiping your ass with 20s, as Office put it above, then yeah, you might consider living on 115K US a year in Shanghai slumming.
But since I'm from your neck of the woods and I know what 115K a year buys in New York, I'm gonna stick with "your golden"
p.s. nrgfink, You DO need to drop $10 for a burger in NY.