It is no secret that in Ukraine IT specialists feel especially good - the majority of their incomes are tied to foreign currency, and the tax on them is much lower than anywhere else. At the same time, the general standard of living or the ceiling in a career in our country pushes many to move to places with a high standard of living - Europe, the States or developed countries of Asia. For almost any specialist, moving will mean a reduction in income compared to what they had at home, but not everything can be foreseen. We decided to figure out how to correctly calculate the costs of relocation, so that later we wouldn’t have to put our teeth on the shelf.
Salary and taxes
The salaries of IT specialists abroad in developed countries are grossly higher than in Ukraine. This is due both to the standard of living and to legislation, which, in particular in the EU, obliges employers to hire only high-level specialists. European countries value Ukrainian top and mid-level specialists who are ready to switch from outsourcing to working on a product. For a number of industries - for example, telecom, which, due to historical factors, is underdeveloped in Ukraine - moving will mean the only opportunity for career growth. At the same time, even if the salary before taxes is significantly higher than the Ukrainian one and even high by the standards of the country, the amount remaining after taxes can force a specialist, at least in the first months after moving, to seriously save. Especially if a person moved to the country with his family. Therefore, before voicing the desired amount of income, you need to find out:
average salary range for this position in the country;
the exact amount of taxes that will be deducted from your salary.
The recruiter knows the salary range; some countries provide statistics on salaries online (for example, Sweden has a website with statistics).
With taxes, everything can be either very simple or very complicated, depending on the specific country. One thing can be said with 100% confidence - the same low tax that most IT specialists pay in Ukraine (5%) will not be in the West. For example, in Estonia, which is now actively recruiting programmers, there is a flat rate of 20%. In other countries (for example, Poland, Sweden, France, Germany) a progressive rate is established, which depends on the size of wages - the higher it is, the more the state has to give. For example, the minimum size for Germans is 14%, the maximum is 45%. Developer salaries in the country are closer to the maximum level, so it is quite possible that an IT specialist in Germany earns approximately the same amount as in Ukraine, at significantly higher prices. Also in Germany, taxes are assessed depending on marital status and the number of jobs:
persons who are unmarried and without children;
single parents;
married couples with a large difference in income;
married couples who do not have a significant difference in income;
persons who have several jobs.
In Sweden, taxes are calculated on annual income and amount to a minimum of 31% (if you earn less than 19,000 crowns, income tax is not paid at all, but again, salaries for IT specialists are always higher). If the annual income exceeds certain indicators, then a little more taxes are required to be paid, but the percentage depends on the income. For example, the maximum tax rate is levied on income of CZK 645,750 and above - 31% taxes on amounts up to CZK 443,800 plus 25% on the rest. In France, one of the world record holders for taxes, in addition to monthly payments, the employee still receives one annual payment equal to his salary. Now the government is thinking about splitting tax payments into 12 months of the year so that it doesn’t hit the budget so hard. All tax nuances for your country should be clarified before discussing wages. By the way, in the West it is customary to announce the amount before taxes, and not after, as in Ukraine. Where to find out: the recruiter should provide complete and accurate information about salary ranges and taxation. He will be able to tell you exactly how much money from your salary and how often you will have to give to the state. The employer can also provide this information.
Rental of property
Housing is another big expense in developed countries. The amount that needs to be paid in the process of renting a home consists of the actual payment per month, the security deposit and the commission to the intermediary who provides the services. The commission and deposit are usually equal to the monthly amount. In large European cities, there is a long queue of people interested in renting housing, so the owners choose the tenants. They usually take fellow citizens most willingly, in second place (if we are talking about Europe) are Europeans from other countries, and only after that are residents of third countries. Check with your employer exactly how the company will help you with your relocation. In some places they will go through the entire process of finding housing for you, in others they will limit themselves to a certain amount for relocation and it is not a fact that they will allocate time for the search. But in Europe, landlords value their time and are unlikely to want to meet with a potential applicant after work or on weekends. Therefore, the more hassle with housing the company takes on, the better for you.
It takes weeks to find a roof over your head, and in particularly severe cases, it can even take a month or more. Owners usually need to be notified of their desire to move three months in advance. Therefore, you should not choose an apartment according to the principle “now I’ll move anywhere, in a couple of months”; moving in Europe is an expensive business and the law protects the rights of landlords. In France, there are restrictions on the cost of rent - by law, it is prohibited to rent housing that costs more than a third of your salary. At the same time, in Paris, square meters are extremely expensive, and for the required amount, you may have to huddle in a tiny apartment with amenities on the floor or in co-living, which are popular in the French capital. In Stockholm, demand for rentals especially does not keep pace with supply. For official rent here you can stand in line for 10 years. For the owners, this is also a troublesome matter - they need to agree on the possibility of renting out their apartment with the management company, in addition, housing cannot be rented out for years; by law, if the owner does not use it for a year, he is obliged to sell it. In some countries (for example, the Netherlands), city tax is added to the cost of rent and utilities. But at the same time, the realtor, when renting out housing, registers the tenant wherever necessary - and he does not have to run through authorities. In most European countries, it is customary to rent out apartments unfurnished - this means that the cost of furnishing must be included in expenses. At the same time, at online flea markets you can buy (or even get for free, for pickup) furniture in excellent condition - from people who are moving from their home. Therefore, if you are limited in funds and are not demanding in terms of room design, furniture and necessary household appliances will, in fact, cost the delivery cost. And this is significantly less than fully furnished. But it depends on your luck - no one guarantees that you will be able to find everything you need on an online flea market. When moving out of a rented apartment in Western Europe, keep in mind that you will need to leave it in the same condition in which you received it - with perfectly white walls, without a single nail hole and clean. If you don’t do this yourself, the landlord will deduct the amount for the relevant work from the deposit. Where to find out: You can find out from the recruiter the main resource where it is customary to look for housing, and ask the price. He will also tell you whether there are any special legal restrictions related to renting in the country. You need to ask the employer how he helps with relocation and how much money he allocates for relocation. In cities with high demand for housing, you may have to stay in a hotel for a while - if you have to pay for this out of your own pocket (for example, the amount allocated for reloyket), it is also worth making inquiries about hotels. The Numbeo resource can also provide guidance on housing costs .
Utilities
Entire legends are made up in our country about the high prices for utilities in Europe. In fact, after the wave of price increases of previous years in Ukraine, today the difference is not so frightening, but in the context of a general decline in purchasing power, the size of housing and communal services will matter. If in the capital of Latvia heating is comparable to Kyiv prices, then in countries like Germany, France, and Great Britain the difference will be more affordable. In a number of European countries - the Czech Republic and Germany, for example - heating is paid according to the same principle as in Ukraine in houses without a heat meter - an equal monthly amount throughout the year. If last year's figures were exceeded, you will have to pay the difference and pay more next year. If the winter turns out to be milder (or the tenant is more economical), then the difference will be returned, and the payment amount will be recalculated. But, for example, if someone lived in your apartment before you and liked to turn on the batteries at full power, you will receive hefty bills. Where to find out: recruiter, forums, media publications ( Tinkoff Magazine and VC.ru often write on this topic ).
Life
There are not many countries in the world that are cheaper than Ukraine, and certainly not in places where Ukrainian IT specialists are usually lured. But if in Eastern Europe and the Baltic countries food prices are more or less comparable to those in Kyiv, then in other developed countries of the world the difference will be many times greater. It is almost impossible to predict in advance how much more food will cost. But you can make inquiries in advance from the same recruiter, on forums and specialized resources on the Internet.
Where to find out: recruiter, acquaintances, Internet forums, Numbeo resource, where there are comparisons of the cost of living in cities around the world.
Communication and Internet
When traveling outside of Ukraine, you can forget about cheap mobile communications and home Internet. In Europe, you can save a little on this if you use the services of low-cost communication companies - but then you may have to endure inconveniences in service. Also another way to spend less on mobile communications are virtual mobile operators. But on the other hand, traditional ones often offer cellular communications and home Internet in one tariff, while virtual ones are unlikely to have this. Where to find out: http://prepaid-data-sim-card.wikia.com/wiki/Prepaid_SIM_with_data - a resource where you can find out what operators and tariff plans are available in the country.
Transport
By the standards of the CIS countries, transport in Europe is very expensive. But at the same time, it is a common practice there for the employer to pay for the travel pass. The cost factor, however, is also relative. For example, in Prague, a yearly pass for all types of transport will cost approximately 140 euros (with a minimum cost of a trip of 24 crowns, that is, approximately 28 UAH at the current exchange rate), this is much cheaper than passes for all types of transport in Kiev, taking into account the fact that The Ukrainian maximum is a monthly pass. In Tallinn, local residents ride public transport for free. Of course, in the cities of Western Europe, travel is much more expensive, and a monthly pass, depending on the distance, can cost up to 100 euros. Where to find out: on the official website of the transport organization of the city where you are going. Also check with your employer whether the travel card is included in your benefits.
Medicine
The recruiter will tell you how much insurance costs and what it covers. In European countries, medicine is not only more expensive than in Ukraine, but also less accessible in terms of speed of service. To see a specialist, you have to wait weeks, or even months. In Estonia and Sweden, for example, you can pay a higher rate to the doctor in order to get an appointment faster. But it won’t be like in Ukraine – the next day or within the next few days. Where to find out: check the terms of insurance and medical care with the recruiter.
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