In this final edition of our salary comparison series, we look at Moscow which is the dark horse in this analysis (see New York, Cayman and Dubai analysis).
The Mystique of Moscow
Moscow is a unique jurisdiction, with close connections to both Europe and Asia. Despite a virtually non-existent legal practice two decades ago, the last ten years have seen a flood of excellent partners from London and New York to Moscow to build practices. The result is legal work of the highest quality, with an enviable spread of local and international clients. Add to this the strong financial rewards of working in Moscow, and this is a jurisdiction worth considering strongly.
Money & Moscow
For foreign lawyers, Moscow remains one of the few jurisdictions where lucrative ex-pat packages and hardship allowances are still on offer. Remuneration, although varied, is basically in line with New York rates once the hardship payment of around 20% comes into play. Both UK and US firms generally pay similar rates.
Added to the generous New York level salary is the fact that a flat income tax rate for Moscow residents is a mere 13%, with residents being defined as anyone who resides in the city for over 183 days of the financial year. But here’s the kicker; firms also pay ex-pat lawyers between $US5,000 and 6,000 in housing allowance per month.
Although Moscow can be expensive in parts, it remains in line with other developed Eastern European centres. While housing can be very expensive, the cost of living is, all in all, very reasonable.
To sum up, you could be earning a New York salary with about 50 to 60K on top to spend in the way of housing, with only 13% being taken off for taxation purposes. If you can stand the cold of a Moscow winter, you will no doubt have lots of money to spend in the European summer.
Taking all these factors into account Moscow may well be the most lucrative place for an Aussie or Kiwi lawyer to go.
If you are interested in working in a lucrative jurisdiction and would like to know how best to manage your relocation, contact one of our international consultants on +61 2 9266 2900 or email ea@ea-int.com.