Most are attracted by the possibility of the higher take home pay – often due to lower taxes – and the prospects of a better work life balance. However, many can be deterred by the bureaucracy involved, such as obtaining work permits and dealing with the tax authorities, as well as the security risks.
The survey of more than 1,300 contractors was carried out by international professional services company, Procorre, who found that the top three reasons for wanting to move abroad are:
- A higher take home pay (post-tax) (55 per cent of contractors said that this was a reason for wanting to move abroad)
- A better work life balance (52 per cent)
- To experience working and living abroad (44 per cent).
The higher 'tax-home pay' can be the result of higher rates for working in remote or dangerous locations, or when there is a particular skills shortage within the country and talented contractors are in high demand. It can also be due to lower tax in certain countries.
Lisa Mangan, Relationship Manager at Procorre, said: “Tax benefits and higher salaries are a real temptation for contractors that are considering working abroad. For those willing to make the move there are some highly rewarded opportunities abroad.
“However, the attractive benefits packages and greater take home pay are often there to entice contractors to remote or even dangerous locations.”
But it is not all optimism, the top three concerns about working abroad are:
- Security risks (52 per cent)
- Family don’t want to relocate (30 per cent)
- Don’t want to leave family and friends behind (27 per cent).
The top three biggest problems faced by contractors moving abroad were:
- Obtaining a work permit (49 per cent)
- Dealing with tax authorities (45 per cent)
- Understanding the expenses system (40 per cent).
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Susie Hughes © Shout99 2014