Localization

This method relies on integrating the employee on a local payroll, but retaining in the home country:
- a pension plan
- an international medical insurance

There is neither expatriation allowance in this method, nor expatriate benefits, and the tax is the local tax without any compensation or link with the home country’s tax.

Some expatriates may find this system penalising when the host country’s tax is higher than the home country’s.

It is therefore relevant to assess the tax profile and the goals of the expatriates before implementing this method.

Also, when returning, the lack of link with the home country can prove a strong issue, and generate conflict with the employee.