Corporate Relocation Benefits: What Your Company Should Cover
Important Disclaimer: Corporate relocation benefits vary significantly by company, industry, seniority level, and location. Benefit descriptions and cost estimates in this article are based on general industry practices as of early 2025 and should not be considered guaranteed or standard. Actual benefits are determined by individual employment agreements and company policies. Tax treatment of relocation benefits varies and changes based on tax laws. This article provides general information only for negotiation research purposes. Consult with HR professionals, employment attorneys, and tax advisors regarding your specific situation. International Van Lines provides moving services but does not provide employment, legal, or tax advice.
When Marcus got the call offering him a director position at his company’s London office, he was thrilled. The role was perfect, London sounded amazing, and this was the career advancement he’d been working toward.
Then he started thinking about the logistics. Moving his family of four from Boston to London would cost how much? Shipping their belongings, flying everyone over, finding temporary housing, getting the kids in schools—the costs added up fast in his head. Would the company cover everything, or would this dream opportunity cost him $30,000 out of pocket?
His offer letter vaguely mentioned “competitive relocation benefits” without specifics. Marcus had no idea what was standard versus what he needed to negotiate for. After some research and conversations with friends who’d made international moves, he discovered that relocation packages vary dramatically, and everything is negotiable.
Let’s break down what comprehensive corporate relocation packages actually include and what you should ask for.
The Full Relocation Package Components
Comprehensive corporate relocation packages for international moves can include 10-15 distinct benefits. Not every company offers everything, but understanding what’s possible helps you negotiate effectively.
Household Goods Shipment
This is the foundation of any relocation package. The company pays for professional movers to pack your belongings, ship them internationally via container, clear customs, and deliver to your new home.
Standard coverage: Full-service door-to-door moving for a reasonable amount of household goods. Companies typically set weight or volume limits based on family size.
Red flags: Companies that cap coverage at unrealistically low amounts ($5,000 for an international move doesn’t cover much). Companies that make you arrange and pay movers then reimburse limited amounts.
What to ask for: Coverage sufficient for your actual household size. For a family, that means at least $15,000-25,000 in moving costs depending on destination. Unlimited or very high caps are ideal. Ensure the coverage includes packing, shipping, insurance, customs clearance, and final delivery—not just the ocean freight portion.
Temporary Living
You won’t move directly into your permanent home. You need temporary accommodation while searching for permanent housing.
Standard coverage: 30-60 days in serviced apartments or extended-stay hotels. Some companies provide longer if finding housing takes time.
What to ask for: At least 60 days for international moves, preferably 90. Finding housing in a foreign country takes longer than domestic moves. Ensure the coverage is reasonable accommodation—not budget hostels, but not luxury hotels either. Something comfortable for your family.
Ask about what happens if you need more time. Do you pay excess? Can you extend with approval?
Home Finding Trips
Before actually moving, you need to visit your new city to understand neighborhoods, find housing, and tour schools if you have kids.
Standard coverage: One round-trip flight per person plus several days of accommodation, often with a relocation consultant who shows you around and helps you understand the area.
What to ask for: Trips for both you and your spouse/partner if applicable. Companies sometimes only pay for the employee. Negotiate for your partner to join—their buy-in on the location matters.
Ask for enough time to properly explore. A rushed 2-day trip doesn’t provide adequate time to understand a city and find housing. 4-5 days is better.
If you have school-age children, negotiate for them to join on the home-finding trip so they can tour potential schools.
House Hunting Assistance
Related to home-finding trips, many companies provide professional relocation consultants who assist with finding housing.
These consultants know the local market, understand expat needs, show you multiple properties, help with lease negotiations, and guide you through local rental processes.
Standard coverage: Several days with a relocation consultant showing properties and providing area orientation.
What to ask for: Ensure this is included. For international moves to cities where you don’t know the market or speak the language, professional house-hunting assistance is invaluable.
Transportation
Getting your family to your new country requires flights. Companies should cover this.
Standard coverage: Economy flights for employee and dependents from origin city to destination city.
What to ask for: Business or premium economy for long-haul international flights, especially if you have young children. A 10-hour economy flight with toddlers is brutal. The cost difference is meaningful but not ridiculous relative to the overall relocation investment the company is making.
Ask about shipping your car versus selling and buying locally. If you’re keeping your car, negotiate for vehicle shipping coverage.
Storage
You might not want or be able to ship everything to your new country. Storage coverage lets you store items during your assignment.
Standard coverage: Storage costs for the duration of your international assignment for a reasonable amount of household goods.
What to ask for: Confirm storage is included. Ask about the limits. What happens to stored items when you return—does the company ship them to your next location?
Destination Services
Good relocation packages include orientation and settling-in support at your destination.
This might include:
- Airport pickup
- Orientation tours of your new city
- Help setting up utilities
- Banking assistance
- Registration assistance (local authorities, tax offices, etc.)
- Cultural training
Standard coverage: Some level of destination orientation and settling-in support, often through a relocation services company.
What to ask for: Comprehensive destination services. Cultural and practical orientation makes your transition infinitely smoother.
School Search and Application
If you have children, researching international schools, arranging tours, and managing applications is time-consuming and complex.
Standard coverage: Assistance from education consultants who know the local school options and guide you through the process.
What to ask for: Full school search support if you have kids. This is one area you don’t want to handle alone.
Education Allowance
International schools are expensive—often $15,000-40,000 per child annually. This can easily become the largest ongoing cost of an international assignment.
Standard coverage: Varies dramatically. Some companies cover full tuition. Others cap coverage at a specific amount. Some provide no education allowance.
What to ask for: Full tuition coverage for legitimate international schools, or at minimum, coverage up to a reasonable amount for schools in your area. For multiple children, this benefit is worth tens of thousands annually.
Ask if the allowance includes additional fees: registration, capital levies, transportation, books, technology fees, and activities.
Tax Assistance
International taxation is complicated. You’ll need professional help.
Standard coverage: Payment for tax preparation services that handle both your US and host country tax returns for the duration of your assignment.
What to ask for: Professional tax preparation for US and host country returns for as long as you’re on assignment plus one year after return (since you’ll file returns for the year of return).
Ensure the company covers any tax equalization or tax protection provisions.
Tax Equalization
This is a huge one that many people don’t understand until it’s too late.
When you work abroad, you might owe taxes to both the US and your host country. Without protection, you could end up paying significantly more in total taxes than you would have paid staying in the US.
Tax equalization ensures you pay the same taxes you would have paid remaining in the US. The company pays the difference if host country taxes exceed what you’d owe to the US.
Standard coverage: More common for senior employees or multi-year assignments.
What to ask for: Tax equalization if you’re moving somewhere with higher taxes than the US. Without it, you might lose money taking the international role.
Cost of Living Allowance (COLA)
If your destination city is more expensive than your origin, COLA supplements your salary to maintain purchasing power.
Standard coverage: Calculated based on comparing costs between origin and destination cities for housing, goods, and services.
What to ask for: Appropriate COLA for expensive destinations. COLA can be worth thousands monthly in places like London, Singapore, or Hong Kong.
Language Training
If you’re moving somewhere you don’t speak the language, training helps immensely.
Standard coverage: Language classes for employee and sometimes for spouse/partner.
What to ask for: Language training for whole family, not just the employee. Your partner and kids need language skills too.
Spousal/Partner Support
When one person relocates for work, their partner often sacrifices their career. Good companies recognize this.
Standard coverage: Career counseling, job search assistance, networking support for trailing spouses/partners.
What to ask for: Comprehensive spousal support if your partner is giving up their career for your move. Some progressive companies even provide financial compensation for lost spousal income.
Return Trip
For long assignments (2+ years), going back to the US once annually helps maintain family connections and handle US obligations.
Standard coverage: Annual flights back to the US for employee and dependents.
What to ask for: Annual return flights, particularly for multi-year assignments far from the US (Asia, Middle East).
What Tier of Package Should You Expect?
Relocation packages vary based on several factors.
By Seniority Level
Entry-level employees typically get basic packages: shipping, flights, some temporary housing, minimal extras.
Mid-level employees get moderate packages: most core benefits but perhaps with caps or exclusions.
Senior employees get comprehensive packages: full benefits, high caps or no caps, and premium provisions.
This makes sense from the company’s perspective. They’re investing based on the value and longevity they expect from the employee.
But it’s negotiable. If you’re mid-level but critical to the company, argue for better benefits.
By Assignment Duration
Short-term assignments (6-12 months) often get smaller packages. The company might provide furnished housing and per diem instead of full relocation benefits.
Long-term assignments (2+ years) and permanent relocations warrant comprehensive packages.
By Location Difficulty
Moving to London or Toronto is straightforward. Moving to Shanghai or Nairobi is complex. Harder destinations often justify more comprehensive support.
By Whether It’s Your Choice or Company Need
If you’re requesting an international assignment for your own development, expect less generous packages. If the company needs you in a specific location to solve a business problem, you have more negotiating leverage.
What People Forget to Ask About
Several benefits get overlooked in negotiations but matter significantly.
Insurance Coverage
Will your US health insurance work abroad? Do you need international insurance? Who pays?
Ask explicitly about health insurance coverage for you and your family at your new location.
Pet Relocation
If you have pets, moving them internationally costs $800-3,000+ per pet. That’s meaningful money.
Ask if the company covers pet relocation. Many don’t include it automatically but will add it if asked.
Excess Baggage
Flying with kids often means lots of luggage. Ask if the company covers excess baggage fees or just one checked bag per person.
Lease Break Fees
If you’re locked into a US lease, breaking it costs money. Ask if the company covers lease termination fees or helps with that cost.
Duplicate Housing Costs
You might pay rent at your US place while also paying temporary housing at your destination during the overlap period. Ask how this is handled.
Home Sale/Rental Assistance
If you own your home, do you sell it or rent it out? Companies sometimes provide realtors to help sell your home or property management to help rent it.
Currency Fluctuations
If you’re paid in US dollars but living in a country with a different currency, exchange rate fluctuations affect your actual spending power. Some companies address this through COLA adjustments or providing partial salary in local currency.
Negotiating Your Package
Everything is negotiable. Here’s how to approach it.
Get It in Writing
Don’t accept verbal promises. Ensure every benefit is documented in your offer letter or relocation agreement.
Research Market Rates
Talk to others who’ve made similar moves. What did their companies provide? This gives you benchmarks.
Know Your Leverage
If the company really wants you in that location, you have negotiating power. If you’re one of many candidates who’d take the role, your leverage is limited.
Start High
Ask for more than you expect to get. You can negotiate down but not up.
Prioritize
You probably won’t get everything. Know which benefits matter most to you and fight hardest for those.
Use Relocation Specialists
If the company offers to work with a relocation management company, take that benefit. These companies know what’s standard and can advocate for your needs.
Red Flags in Relocation Packages
Watch for provisions that sound good but aren’t.
Lump Sum Instead of Benefits
Some companies offer lump sums: “We’ll give you $25,000 to handle your move yourself.”
This sounds good but creates problems. You’re responsible for everything. If costs exceed the lump sum, you’re on the hook. The amount is taxable as income.
Lump sums work for domestic moves but are risky for international relocations where costs are high and unpredictable.
Low Caps That Don’t Cover Realistic Costs
“We provide up to $8,000 for household goods shipping” sounds generous until you discover international container shipping costs $15,000-25,000 for a family.
Push for realistic caps or unlimited provisions for major expenses.
Lack of Tax Coverage
If the relocation benefits are taxable (many are) and the company doesn’t cover the tax burden, you might net less than you think.
Ask whether the benefits are grossed up (company pays the taxes on the benefits).
No Repatriation Benefits
Some packages cover moving you to the new country but not moving you back. Ask about repatriation benefits for when your assignment ends.
Making Your Move Successfully
Corporate relocation packages can range from minimal to extraordinarily comprehensive. Don’t leave money on the table by accepting the first offer without negotiation.
Once your package is negotiated and you’re ready to move, working with experienced international moving companies makes the logistics smooth. Your company’s relocation benefits should cover professional moving services.
Contact Us About Corporate Relocations
Frequently Asked Questions
What if I leave the company shortly after relocating?
Most relocation agreements include clawback provisions requiring you to repay some or all relocation costs if you leave within a specified period (typically 12-24 months). Read the fine print before signing.
Are relocation benefits taxable?
Many relocation benefits are taxable income. Good companies gross up the benefits (pay the taxes for you). Ask about tax treatment and gross-ups when negotiating.
What if my spouse can’t find work in the new country?
This is why spousal support provisions matter. Negotiate for career counseling and job search assistance for your spouse. Some companies provide allowances to compensate for lost spousal income.
Can I negotiate after accepting the initial offer?
It’s harder but possible. Your best leverage is before accepting. Once you’ve accepted, the company knows you’re committed and has less incentive to improve the package.
What happens if costs exceed the package benefits?
You pay out of pocket unless you negotiate additional coverage. This is why realistic benefit caps matter. International moves are expensive. Make sure your package covers actual costs.
Should I use the company’s preferred moving company?
Usually yes, since it’s covered by your benefits. But you can ask if you have flexibility to choose movers if you have preferences or concerns about the company’s preferred vendor.
