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Relocation Viability Score (RVS) Methodology

Last Updated: April 2026

What the RVS Measures

The Relocation Viability Score is a financial readiness assessment for international relocation. It evaluates three dimensions of financial preparedness and produces a score from 0 to 100.

The RVS answers a specific question: Given your financial profile, how prepared are you financially to make this move?

It does not attempt to assess the full complexity of international relocation. Visa eligibility, employment portability, healthcare access, cultural adaptation, currency risk, local property regulations, and many other factors are critical to a successful move: they require specialized, local human expertise that a data model cannot reliably provide. The RVS identifies these as analysis gaps and connects users with qualified professionals who can address them.

Score Components

The RVS comprises three weighted components, each scored 0–100.

Post-Move Liquidity (40% weight)

Measures total available cash after selling your current home (if applicable) against a target amount based on the destination's economics.

Inputs:

  • Net home sale proceeds (calculated from home value, mortgage, transaction costs)
  • Liquid assets (savings, investments)
  • Liquidity target (the higher of a $450,000 baseline or a dynamic target equal to required minimum down payment + 2× estimated annual expenses)

Scoring: Linear scale: total liquid assets as a percentage of the liquidity target, capped at 100.

Why 40%: Liquidity is the prerequisite for any international move. Without sufficient cash reserves, relocation is not feasible regardless of income or property affordability. This is a Waycarta editorial weight reflecting the primacy of cash-on-hand for cross-border transitions.

Income Sustainability (35% weight)

Measures whether your income can cover ongoing living expenses in the destination.

Inputs:

  • Annual income
  • Estimated annual expenses in destination (adjusted using available cost-of-living data)
  • Destination income tax liability

Key metric: Coverage ratio = after-tax income ÷ estimated expenses.

Scoring thresholds:

  • Below 0.8: Not sustainable. Score 0–40. (The 0.8 threshold reflects the standard financial planning rule that expenses exceeding 80% of after-tax income indicate financial stress.)
  • 0.8 to 1.0: Tight but workable. Score 40–60.
  • 1.0 to 1.5: Comfortable. Score 60–85. (Break-even at 1.0; the 1.5 threshold represents a 50% income buffer, a commonly cited target for financial resilience in new environments.)
  • Above 1.5: Very comfortable. Score 85–100.

Why 35%: Income sustainability determines long-term viability. A move that depletes savings without sustainable income is a financial risk. Weighted second because short-term liquidity (getting there) must precede long-term sustainability (staying there).

Property Affordability (25% weight)

Measures ability to purchase property in the destination.

Inputs:

  • Available cash for down payment
  • Destination property price target (typically the user's expected destination property cost; if not provided, the current analysis path falls back to current home value as a proxy)
  • Minimum down payment percentage (country-specific defaults)

Key metric: Down payment coverage ratio = available cash ÷ required down payment.

Scoring thresholds:

  • Below 0.5: Not affordable. Score 0–25.
  • 0.5 to 1.0: Challenging. Score 25–60.
  • 1.0 to 1.5: Affordable. Score 60–85.
  • Above 1.5: Very affordable. Score 85–100.

Why 25%: Property purchase is important but not essential: renting is always a viable alternative, particularly in the first years of relocation. Weighted lowest because it represents an optional dimension of financial readiness.

Final Score

RVS = (Liquidity × 0.40) + (Income Sustainability × 0.35) + (Property Affordability × 0.25)

Score categories:

  • 80–100: Highly viable
  • 60–79: Viable
  • 40–59: Challenging
  • 0–39: Not recommended

Data Sources

Cost of Living

Source: Numbeo Cost of Living Index (updated annually)

Numbeo publishes cost-of-living indices benchmarked to New York City (NYC = 100) across several categories: overall, rent, groceries, restaurant meals, and transportation. Index values above 100 indicate a location more expensive than NYC; values below 100 indicate cheaper.

How we use it: We prefer individual category indices (especially rent and groceries) for expense estimation. When the overall composite index is missing, Waycarta may synthesize a weighted pseudo-overall from available sub-categories for comparison outputs. If category-specific inputs are unavailable but an overall COL difference is available, we may use that overall difference as a fallback adjustment. Missing categories are still flagged explicitly in the analysis output.

Expense estimation: When estimating destination living expenses, we adjust the two largest variable cost categories using available COLI data:

  • Housing (35% of base expenses): Adjusted by the COLI rent index. This is the most geographically variable expense category and has the broadest data coverage.
  • Food (15% of base expenses): Adjusted by the COLI groceries index when available.
  • Other expenses (50% of base): Held at the baseline ratio when category-specific data is unavailable.

When no COLI data is available at the city level, we fall back through a geographic hierarchy: city → state/province → country. The data source level is reported in the score provenance.

Housing Values and Rent

US origins: US Census Bureau American Community Survey (ACS). Median home values and household income at the state level.

International destinations: When direct housing price data is available elsewhere in Waycarta, we may use it for reference. When it is not, Waycarta can estimate home values and monthly rent from the COLI rent index using NYC as the baseline:

  • Estimated home value = NYC median home value ($900,000) × (rent index ÷ 100)
  • Estimated monthly rent = NYC median monthly rent ($3,500) × (rent index ÷ 100)

These estimates are flagged as derived values in the score provenance.

These derived estimates support other Waycarta views and provenance. They do not currently determine the property-affordability or liquidity-target denominator in the main RVS analysis path. In that path, Waycarta uses the user's expected destination property cost when provided. If it is omitted, the current production fallback is the user's current home value as a proxy target.

Tax Data

US federal: IRS tax brackets for the current filing year.

US state: State-specific income tax brackets where available.

Destination countries: Income tax brackets sourced from national tax authorities. Applied using standard brackets, with support for some explicitly selected regimes (for example, Portugal's Non-Habitual Resident regime). Treaty benefits, many deductions and credits, and the full fact pattern of special regimes are not fully modeled. Tax treaty implications are flagged as an analysis gap requiring professional advice.

Property Transaction Costs

US origins: State-specific agent commissions, closing costs, and transfer taxes from public records and industry data.

Destination countries: Country-level typical down payment percentages. Current defaults are 20% for US, Portugal, Croatia, and Italy; 30% for Mexico, Costa Rica, Spain, and Greece; and 25% where country-specific data is unavailable.

What the RVS Does Not Measure

The following factors significantly affect relocation outcomes but are beyond the scope of a financial data model. Each is flagged as an analysis gap in the RVS report, with a recommendation to consult the appropriate specialist.

FactorWhy it mattersSpecialist type
Visa eligibilityLegal right to reside determines feasibilityImmigration attorney
Employment portabilityWhether your income source survives the moveCareer/relocation consultant
Local property regulationsForeign ownership restrictions, title issuesLocal real estate attorney
Tax treaty implicationsDouble taxation, foreign tax credits, special regimesInternational tax advisor
Healthcare costsInsurance, out-of-pocket, quality differencesExpat insurance broker
Currency riskExchange rate volatility affects purchasing powerFinancial advisor
EducationSchool quality and costs for families with childrenRelocation consultant
Cultural adaptationLanguage, social integration, quality of lifeRelocation consultant

These gaps are not shortcomings: they reflect the reality that international relocation involves local, situational, and legal complexities that require human judgment. Waycarta's role is to establish the financial baseline and then connect users with professionals who can address the dimensions that matter most to them.

Assumptions and Limitations

Stated Assumptions

All assumptions used in the RVS calculation are documented in the score output. Key defaults:

  • Expense ratio: 70% of gross income is assumed for total living expenses when the user does not provide their own estimate. This is adjusted using available COLI data for housing and food categories.
  • Down payment: Country-specific defaults are used (e.g., 20% for US/Portugal/Croatia/Italy and 30% for Mexico/Costa Rica/Spain/Greece). Where country-specific data is unavailable, 25% is assumed.
  • Liquidity target: The higher of a $450,000 baseline or a dynamic target equal to required minimum down payment + 2× estimated annual expenses. This reflects the dual need for purchase readiness and cash reserves.
  • Destination property target fallback: Property-affordability and liquidity-target calculations use the user's expected destination property cost when provided. If it is omitted, the current analysis path falls back to the user's current home value as a proxy target.
  • Home sale costs: Net home sale proceeds are calculated through Waycarta's home-sale engine for all origins using available country/region transaction-cost and tax data. When data is missing, default estimated rates are used and flagged.

Data Limitations

  • COLI coverage varies by city. Some destinations have robust contributor data across all categories; others have partial coverage. The RVS reports exactly which categories have data and which do not.
  • Tax calculations are simplified. We apply standard brackets and support some explicitly selected regimes, but we do not fully model deductions, credits, treaty benefits, or the full detail of most special-regime fact patterns. Actual tax liability may differ significantly.
  • Property estimates from COLI are approximations. Using rent index as a proxy for property values assumes a consistent rent-to-price ratio relative to NYC. This holds reasonably well for broad comparisons but may diverge for specific markets.
  • Current-home-value proxy can distort the score. When destination property cost is omitted, using current home value as the proxy target can materially overstate the property target for users moving from higher-cost origin markets to lower-cost destinations.
  • Income is assumed to transfer. The RVS does not model whether the user's income source (employment, freelance, retirement, investment) will be available or legal in the destination country.

What "Estimated" Means

When the RVS report marks a value as "estimated," it means the value was derived from available data using a documented method rather than sourced directly. The estimation method and source data are included in the score provenance so users can assess the reliability for their situation.

Versioning

This methodology document is versioned alongside the Waycarta platform. Changes to scoring weights, thresholds, data sources, or estimation methods will be documented here with the date of change.

Current version: 1.1 (April 2026)