# Expat package to live in New York



## HKtoNY (Dec 16, 2008)

My husband has been asked to transfer to NY for 3 years for his company. I am trying to get some infomation regardig what we should ask for regarding 'extras' and would also like to find out what housing allowances are considered standard.

We currently live in Hong Kong and get a housing allowance of around 13,000 US$ and when we lived in the UK we had around 6,000 US$. We live in approx 2500sq ft apartment and had a similar size apartment in London. Whilst we can live in a smaller apart - we have no kids - the company want us there so i am not sure we should compromise. Based on others experience is this an ok / outrageous expectance ?? Ous quality of life here is high despite my husband working long hours. He leaves the office and is home in 15 mins. In the UK we both worked in The City and walked home in 30 mins. don't really want to spend ages on a train cos we can't afford to live close to the office / restaurants etc. 
We will do an 'awareness' trip early next year so will look at where we want to live in more detail then.

I have been reading a little about visas and think we need to have an L1 visa so i can have the possibility of getting a job. Is this the standard visa for inter-company transfers or would we have to request this ??

Does anybody know any grocery websites I can look on - I want to price compare my weekly shop here to one in the US. We currently eat out maybe 3 times a week in average restaurants and when i cook i cook full meals, eg make bread, soup, cook casseroles, steaks. If there is anyone on here prepared to share their household spending or a rough figure I would appreciate it. 

We have medical insurance here and I am sure we will just keep the same policy as it is international BUPA but are there any other things we need to consider ???
Any tips via this forum or PM would be appreciated as we learnt from experience if you don't negotiate stuff before you agree it is too later when you are there. A lot of our colleagues got club / golf memberships here and we did not know to negotiate for one before we arrived...

We are thinking about either living in NYC or NY Upstate. My husband will be travelling and also working in both Westchester and NYC. We don't have kids so schooling will not be an issue however if i don't work I would like to be somewhere i can find things to do...... 

Any advice will be gratefully accepted as it is all a bit of a confusion of websites and government babble at the moment.....


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## Bevdeforges (Nov 16, 2007)

If you're planning on living in NYC, especially in Manhattan, I wouldn't hold out for a certain size apartment. Rents for Manhattan are pretty outrageous by normal standards. You can get a real good idea from the Real Estate pages of the NY Times. If you go for Westchester Co., you'll need a car for day to day errands and to get just about anywhere. You can easily do without a car if you live in Manhattan, but if you do decide to get a car (or have the company provide you with one) be sure you have a "housing allowance" for it, too. Garage space can cost as much as an apartment.

Several of the big grocery chains in NYC have websites where you can check prices, though be careful to see whether you're looking at the store sites or those for the Internet shopping sites. Having groceries home delivered costs more - but many New Yorkers find the extra expense well worth it to have the provisions delivered and put away for them. Just google "grocery stores in NYC" and you'll find a bunch of websites.

Be aware that the cost of your international health insurance policy will skyrocket when you're resident in the US. Admittedly it's the company paying for it, but they'll be very aware of this fact when you are bargaining for additional benefits. Be sure you have someone to do your taxes, as expat taxes get really complicated real fast with all the benefits that are tacked on to the salary.

And in this era of "corporate downsizing" be very sure your expat agreement is very clear on what happens should the job in NY "go away" for any reason. Will they repatriate you (and to where)? You may also want to have vacation time spelled out rather clearly. The norm in the US is only two or three weeks and it's considered bad form to grant extra vacation to upper level execs. They may get around this by giving you a month's "home leave" once a year - so you should be clear on what the conditions are on that. (Do you have to "go home"?)
Cheers,
Bev


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## HKtoNY (Dec 16, 2008)

Thanks for these tips. Have been checking out grocery stores websites and it looks similar to Aisa where you need to visit lots of different places to get all the things you would need. for example, looking at the Walmart site I could not find any of the cheeses we would normally buy. I will look a bit further at some others .....

Good point regarding the holidays and one we definately need to bear in mind. when we moved to HK the standard hols were 2 weeks and husband kept his European holidays which after long service is 29 days...

Will definately have to consider getting a car put back into the package. In the UK we had one but said we didn't want one in HK as it is cheaper and easier to get a taxi...

Taxes will be taken care of I think by KPMG. They do it now and did it he UK but another one to remember.

Have spent about 3 hours looking at NTYTimes real estate. MY GOD SO MUCH CHOICE ........ But it is good cos I can work out how much allowance we will need to get a similar apartment to the one we have.....

IF my husband gets an L1 visa I can apply for an L2 visa (?) so I can work is what I understand from the Gov website......... Has anyone done this ?? How easy will it be to get a part time job in NYC..... a bookshop for example....
In HK it is almost impossible as there is an unspoken positive discrimination policy towards the local chinese......


I am sure there will be a million questions soon but will plough throught he forums to read what has been said before.

Thank you for all advice 



Bevdeforges said:


> If you're planning on living in NYC, especially in Manhattan, I wouldn't hold out for a certain size apartment. Rents for Manhattan are pretty outrageous by normal standards. You can get a real good idea from the Real Estate pages of the NY Times. If you go for Westchester Co., you'll need a car for day to day errands and to get just about anywhere. You can easily do without a car if you live in Manhattan, but if you do decide to get a car (or have the company provide you with one) be sure you have a "housing allowance" for it, too. Garage space can cost as much as an apartment.
> 
> Several of the big grocery chains in NYC have websites where you can check prices, though be careful to see whether you're looking at the store sites or those for the Internet shopping sites. Having groceries home delivered costs more - but many New Yorkers find the extra expense well worth it to have the provisions delivered and put away for them. Just google "grocery stores in NYC" and you'll find a bunch of websites.
> 
> ...


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## Bevdeforges (Nov 16, 2007)

At the level it sounds like you're going, chances are they're doing an L1 for your husband, which means an L2 for you. Finding a part time job normally wouldn't be too difficult (especially if you have a "British accent" - which to the Americans includes most forms of Aussie or Kiwi) however right now, with all the turmoil in the financial markets, you may have pretty stiff competition for even the lowliest part time job.

I doubt Walmart sells real cheese - just "processed cheese food" which is called cheese in the US. (Sorry, it's my French side coming out...) For anything vaguely "exotic" try Whole Foods. They're pricey (but starting to reduce their prices due to the competition) and generally have a good selection of imported items. Then, too, you have all the "ethnic" shops and delicatessens in NY City. Once you get to know some of the neighborhoods, you'll find all sorts of wonderful things in the strangest places. (One big argument for living in the city.)
Cheers,
Bev


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## synthia (Apr 18, 2007)

Another thing to remember is that in the US, allowances are taxable. When I lived in South Africa, my housing allowance and my company car weren't subject to tax. They were considered normal business expenses. However, under US tax code it's just another form of income and is taxable. So if you are granted a housing allowance of $10,000 per month, you will owe US income taxes on it. Your US taxes will be exceptionally high, since you must also pay New York State income tax and NYC income tax. I don't think either of these are coverd by tax treaties or any other arrangements. I think that if you live in Connecticutt you must also pay Connecticutt stat income tax in addition to New York State income tax. I don't think they have a reciprocity agreement.

Company cars are unusual in the US unless you are a top executive and getting a driver who is trained to protect you from kidnapping, etc. along with it.

Commuting times in New York can be high, even if you live in Manhattan. Get as close to work as they will let you, and sacrifice space to do it. Also, if you are in the city, a car becomes a detriment.


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## Bevdeforges (Nov 16, 2007)

Interesting point Synthia raises about "cross border" taxes within the US. Basically it works kind of like the cross border taxes internationally - you pay your primary income tax to the state where you are resident, but you wind up having to file in both the state where you live and the state where you work.

The mechanisms for offsetting taxes paid in one state against your liability in the other differ from state to state. But that's why they have KPMG doing your taxes for you. (And there should be some sort of "tax equalization" provision in there someone - where they gross things up to assure that your net take-home pay is equivalent to some "back home" base line figure.)
Cheers,
Bev


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## HKtoNY (Dec 16, 2008)

OKay it looks like we really have to keep an eye on how they do the tax thing. Currently we still pay our Taxes as we would on our income back home as our salary is stil paid in Francs an into our account there ( we just transfer money to our HK account for our spending) and the company pay all the necessary local taxes including those on the housing etc etc. I am sure it is not that 'simple' but as KPMG sort everything out all we have to do is keep detailed accounts of how long my husband spends in each country on business trips.



Bevdeforges said:


> Interesting point Synthia raises about "cross border" taxes within the US. Basically it works kind of like the cross border taxes internationally - you pay your primary income tax to the state where you are resident, but you wind up having to file in both the state where you live and the state where you work.
> 
> The mechanisms for offsetting taxes paid in one state against your liability in the other differ from state to state. But that's why they have KPMG doing your taxes for you. (And there should be some sort of "tax equalization" provision in there someone - where they gross things up to assure that your net take-home pay is equivalent to some "back home" base line figure.)
> Cheers,
> Bev


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## synthia (Apr 18, 2007)

Unless there is a tax treaty involved, you normally pay taxes where you earn the money rather than where you are paid. KPMG will continue to take care of it for you, and will handle the local tax situation as well. They should be able to give you an estimate of what your takehome pay will be.


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## leavingrye (Jan 31, 2009)

*not so bad if KPMG involved*

I moved from HK to NY about 10 years ago and had to get taxes done (and refiled for prior 3 years) but after that it was fine. Any of the big accounting firms are good. Send me a private email and can share experiences about life in HK vs NY.

If you have kids we found NYC challenging. Schools, getting around, small apratments etc. In winter it felt very tight vs hong kong where you can always go out (but for Typhoons!)

Also, I am moving to Florida soon and can rent out my home to you if you would like. New home in Rye ny with great schools and 35 minute commute to NYC.


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## k98_man (Jan 21, 2009)

One of the most expensive places in the country. It's that way for a reason though; you'll love it.


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