Expatriates: Differences with Immigrants and Their Challenges

Last updated on February 26th, 2025 at 10:20 am

Currently, more and more people are choosing to live and work abroad as expatriates. Expatriates are not just foreigners living in another country; they also play a significant role in fostering international relations, whether in the fields of economy, culture, or others.

In Indonesia, the number of expatriates continues to rise every year. According to data from the Ministry of Manpower, in May 2022, the number of foreign workers reached 96.57 thousand, with most residing in Jakarta. This indicates that Indonesia has become one of the favorite destinations for foreign workers and has a positive impact on various industrial sectors.

In this article, we will explore what an expatriate is, how it differs from immigrants and inpatriates, how to become an expatriate, the benefits you can gain, and the challenges of being an expatriate.

What Is an Expatriate?

An expatriate is an individual who resides outside their home country for work or other specific activities while maintaining their original citizenship.

Expatriates may live abroad temporarily or even settle permanently. However, unlike immigrants, expatriates do not change their citizenship.

Typically, expatriates relocate for professional purposes, such as working for multinational companies or managing specific projects. They often possess specialized skills that are in demand in the labor markets of the host country.

Differences Between Expatriates and Immigrants

If expatriates are foreigners living abroad, how do they differ from immigrants? To clarify, here are the distinctions: 

Expatriates

Expatriates are individuals who live outside their home country while maintaining their original citizenship. They usually work on specific contracts and have clear professional objectives in the foreign country.

Immigrants

Immigrants are individuals who choose to leave their home country and permanently settle in a new country. They often move to seek better opportunities, whether for work, education, or quality of life.

Differences Between Expatriates and Inpatriates

While the term expatriateis familiar, you may also have come across the term " inpatriate."Although they sound similar, there are fundamental differences in their roles, workplace locations, and purposes.

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Expatriates

Expatriates move from their home country to another country to work or contribute for a specific period.

Inpatriates

Inpatriates are individuals from abroad who are relocated to their employer's home country. They often work at the company's headquarters or branch office in the home country, unlike expatriates, who work abroad.

How to Become an Expatriate

There are several pathways to becoming an expatriate. Common approaches include:

Expatriate Selection

Large or multinational companies often provide opportunities for employees to become expatriates through international rotation programs or internal selections. These programs enable high-performing employees to be transferred to overseas offices to enhance their skills and experience.

Working for Foreign Companies Domestically

If you work for a foreign company operating in your country, you may have the chance to be relocated to the company’s home country or other international branches.

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Networking

Sometimes, becoming an expatriate involves leveraging connections in the destination country. These contacts can open doors to job offers or opportunities to live and work abroad.

Benefits of Becoming an Expatriate

Being an expatriate offers more than just the chance to work abroad—it also provides numerous benefits that can enhance quality of life, career growth, and personal experiences. These include:

1. Higher Salary

Expatriates often receive higher salaries compared to local workers, as they bring specialized skills to the host country. Companies may also provide additional allowances to cover living expenses.

2. Opportunity to Develop Skills

Living and working abroad offers opportunities to develop both professional and personal skills, such as adapting to new cultures, expanding international networks, and learning foreign languages.

3. Work While Traveling

Expatriates can explore new places, experience different cultures, and enjoy a diverse lifestyle, making the overseas working experience more fulfilling.

4. Owning Property Abroad

Many expatriates choose to invest in property in the country where they work, providing long-term financial benefits, especially in markets with favorable property opportunities.

Challenges Faced by Expatriates

Living as an expatriate offers many opportunities and new experiences, but there are also several challenges that must be faced. Here are some of the main challenges often experienced by expatriates:

1. High Living Costs

Living abroad often comes with much higher expenses compared to one’s home country. This is especially true if an expatriate lives in a major city or a country with a high cost of living. 

Expenses for housing, transportation, food, and healthcare can be much more expensive, especially if the expatriate does not have access to local subsidies or special allowances from the company they work for.

2. Potential for Double Taxation

One financial challenge expatriates face is the possibility of double taxation. Double taxation occurs when an individual must pay taxes both in their home country and the country where they are working. 

Although many countries have tax treaties to prevent this, the paperwork and compliance with tax laws can be complex and confusing. This can significantly reduce their net income.

3. Cultural Differences

Living in a country with a different culture requires adaptation, which is not always easy. Differences in social norms, language, work practices, and even food can pose challenges for expatriates. 

Cultural misunderstandings can occur, both in personal and professional life. Additionally, feelings of alienation and communication difficulties due to language barriers can worsen the experience.

4. Being Away from Family

One of the biggest emotional challenges is being far from family and friends back home. Homesickness can be an issue, especially when missing important moments like holidays, birthdays, or family celebrations. 

This often makes expatriates feel lonely, especially if they haven’t built a strong social network in the country they are living in.

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Expatriates in Indonesia: Current Statistics

The presence of expatriates in Indonesia has become commonplace. According to data from the Ministry of Manpower, the number of foreign workers in Indonesia reached 96,570 in May 2022 and continues to grow annually. 

Most expatriates in Indonesia reside in Jakarta, reflecting the city’s status as a prime destination for foreign professionals seeking career opportunities.

This profession not only attracts foreign workers but also contributes significantly to the development of various industrial sectors in Indonesia.

With this overview, this article aims to provide a clearer understanding of expatriates, their differences from immigrants, how to become one, and the advantages of expatriation, offering insights into the global working lifestyle.