Top 5 overseas contracting hotspots of 2013
If 2012 was the year of recovery, many see 2013 as the year of new growth. We have seen many major delayed projects coming back online, offering numerous opportunities all over the world for the internationally-minded UK contractor, writes Matt Walters of overseas tax and compliance specialists Capital Consulting.
Here, exclusively for ContractorUK, we have assembled five of the undoubted hotspots for contracting in 2013. Although they are ranked in no particular order, one notable entry among the hotspots is Romania, as several large projects get underway throughout the year and attractive tax rates should see a boom in the numbers of UK contractors eyeing temporary opportunities.
The Netherlands continues to be an attractive location for contractors, driven by the 30% tax allowance and a large number of opportunities across several industries. Solutions available in the Netherlands are structured and have been tested over time, making it relatively easy to setup and get working in the country with the assurance of an acceptable retention rate.
Romania can boast low tax and social security, as well as large oil and gas projects planned for 2013. Romania’s top personal income tax rate of 16% and low social security costs make it a financially attractive location to work. Opportunities in the oil and gas sectors are likely to get a boost from large projects getting underway throughout 2013. Low cost of living, proximity to Western Europe and Romania’s own cultural heritage are likely to make this an attractive destination.
Norway is well-established and a major focus point for the Oil & Gas industry within Europe, resulting in a large number of stable opportunities for all levels of contractor in a well-structured and compliance-focused location. While local costs can be higher than elsewhere, contractor rates are often higher too so as to attract talented personnel.
Switzerland may have notoriously tough labour laws, but it is a country full of opportunities in the Pharmaceuticals, IT and Banking industries. Paired with the excellent quality of life offered in this rich and diverse country, roles in Switzerland are often highly sought-after. Tax rates vary from canton to canton but even those with higher rates offer a good retention rate to contractors.
Brazil will continue to grow and develop throughout 2013 in the build-up to the major sporting events it will be hosting in 2014 and 2016. As one of the world’s fastest growing economies, major companies from all industries are taking notice of Brazil and with this the number of opportunities for contractors grows. Contractors entering Brazil as employees of a foreign-based company with a local presence will benefit from a tax free period of 183 days from when they enter the country and the added long-term benefit of no Social Security cost for the duration of their contract.
Want to know more?
Additional information on personal tax and social security issues when contracting abroad can be found in ContractorUK’s Contracting Overseas section, and regular updates on up-and-coming contract locations are available from Capital Consulting on +41 32 732 97 00.
Editor's Note: Further Reading - All that glitters overseas to IT contractors may not be gold