Top 5 countries for software engineer contractors in 2024

The rapidly evolving global technology landscape continues to fuel a persistent demand for skilled software engineers. For IT specialists seeking contracting opportunities, the choice of where to ply their trade is a crucial decision that can profoundly impact their careers.

As a co-founder of the leading Bulgarian job board for software engineers, I have witnessed the dynamic nature of the industry and the importance of selecting the right destination for new contracting prospects, writes Ivaylo Hristov, co-founder of DEV.BG.

In this article, exclusively for ContractorUK, I’ll reveal the top five countries that will stand out as primary hubs for software engineer contractors in 2024. These countries were selected based on estimated rates, observations of evolving industry trends, and market demands.

1. Switzerland

In 2024, Switzerland will continue to stand out as an inviting destination for software engineer contractors, boasting a thriving tech industry and a robust economy.

With the presence of multinational corporations and start-ups in the country, the need for skilled software engineers will remain consistently high across various industries, including finance, healthcare, and engineering.

Contract rates for software engineers in Switzerland are notably competitive, ranging from £50 to £110 an hour, depending on experience, specialisation, and project complexity. The highest rates are in Zurich, Zug, Geneva, Vaud, and Lausanne.

Despite its appeal, contracting as a software engineer in Switzerland does come with its disadvantages. Securing projects as a newcomer can be challenging due to competition from established contractors and highly skilled professionals.

2. Denmark

With a strong focus on collaboration and cutting-edge technology, Denmark will continue to offer a fertile ground for software engineers seeking contract, freelance or other temporary opportunities in 2024.

As global industries pivot toward digital transformations, Denmark's forward-thinking approach positions it as a frontrunner, ensuring that software engineers will find abundant prospects for growth, innovation, and impactful contributions.

Contract rates for software engineers in Denmark typically range between £42 to £105 an hour. The highest paid opportunities are in Copenhagen, Aarhus, Odense, Aalborg, and Esbjerg.

Offering generous paid leave and a standard 37-hour working week, Denmark remains one of the most attractive countries for software engineers -- both full-time and contract. One notable disadvantage is the high cost of living in major Danish cities, but growing remote work opportunities could provide a solution for this challenge.

3. The Netherlands

The Netherlands boasts a vibrant tech scene with a wide range of projects and industries, including AI, fintech, and e-commerce. Also, contracts in the country often offer flexible work schedules and a healthy work-life balance. Combine this with some of the highest rates in Europe, and you get quite a promising destination for software engineers.

Contract rates for software engineers in the Netherlands typically range from £35 to £90 an hour.

Senior-level engineers or those with niche expertise may command higher rates for specialised projects. The biggest opportunities for contractors await in Utrecht, The Hague, Amsterdam, Rotterdam, and Eindhoven.

One notable drawback of being a contractor in the Netherlands is the intricate regulatory landscape, including tax laws and compliance requirements. And while English is widely spoken, some projects may require proficiency in Dutch.

4. Germany

Germany offers a mix of innovation, diverse industries, and a strong economy, making it a sought-after country for software contractor jobs. The country’s demand for tech talent is also high, especially when it comes to skilled AI and fintech professionals.

German contract rates for software engineers vary between £39 and £96 an hour. The exact rate will depend on your expertise and the location, with the most preferred cities being Stuttgart, Munich, Frankfurt, Berlin, and Hamburg. The country is also well-regarded for its work-life balance and healthcare benefits.

Navigating work permits and tax regulations might be challenging for non-German contractors, and the language barrier could also limit contract options including negotiations.

5. The United Kingdom

Last but not least, the UK can also be an attractive choice for software engineer contractors looking for new projects.

The country continues to offer diverse opportunities, a strong tech ecosystem, and usually solid demand for skilled professionals. With a focus on innovation and collaboration, freelance software engineers will likely find the most interesting projects in 2024 across industries like fintech, healthcare, gaming, and AI.

According to the latest contractor market rate reports, software engineers can expect UK rates between £38 and £93 an hour. These can vary based on experience, location, industry, and end-user budget.

The most promising contract opportunities for software engineers can be found in London, Cambridge, Bristol, Manchester, and Birmingham.

While the UK offers a wealth of options and a dynamic tech environment for software engineers, the country is not without its challenges. For instance, the impact of IR35 regulations on tax status and compliance can affect contractors' earnings and administrative burdens.

Top five tips for British software engineers eyeing overseas opportunities in 2024  

Last month, we published research into the best countries worldwide for software engineering contractors (Canada leads the pack), which assessed seven robust sources of information, ranging from Glassdoor to the OECD.

Based on those findings, we can now reveal five additional factors software engineer contractors should consider before choosing their destination of work in 2024.

And while high rates are undoubtedly appealing, we suggest pay shouldn't be the sole determining factor when choosing a contracting destination.

• Cost of Living: The income in locations with a steep cost of living might not align with expectations. Monthly expenses can significantly impact the actual financial gain.

• Regulatory and Tax Complexities: Complying with regulations can consume time and resources. Researching the tax system and administrative processes in advance is a must before accepting a software engineering contract in another country.

• Work Environment: Higher rates do not necessarily equal stimulating projects. Professional growth and personal fulfillment are crucial aspects that should also be considered as part of a contractor's overall job decision.

• Long-Term Prospects: Long-term prospects ensure a steady stream of income and financial stability over an extended period. They also help in building a strong reputation. A positive track record fosters trust among clients and enhances future prospects.

• Work-Life Balance: Contractors often work on tight deadlines or in demanding environments, making it crucial to strike a balance to prevent burnout and stress-related health issues. While this can be difficult to estimate beforehand, researching the overall work-life balance in the chosen country can be helpful.

Final considerations

Choosing the right destination as a software engineer contractor in 2024 will involve careful consideration of numerous factors beyond just competitive rates. The five countries highlighted above each offer unique advantages and challenges. While their high rates can be enticing, other aspects like cost of living, regulatory complexities, work environment, long-term prospects, and work-life balance should not be overlooked by contractors.