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Tax Engineering

Offshore software development


Question

Who is an offshore software developer? Is it legal to hire him? Where do I look for his services?

Answer

An offshore software developer is a programmer specialized in php, C, or C+ programming languages and who works outside the country where the company or individual who has contracted their services is registered.

The offshore software developers are usually autonomous. They are also known in the world of programming as "Freelance". However, we can also find serious companies with very large programmer templates. The best countries to hire offshore software developers are: Armenia, Russia, Ukraine, Romania, Bulgaria, Hungary, Latvia, Czech Republic and Slovakia. The worst countries to hire software developers would be India, China, the Philippines, Pakistan and Indonesia. 

Offshore software developers have the same or higher level of knowledge than developers from onshore jurisdictions since they are self-employed people and every day they have to be looking for work to be able to live.

What is the difference between an offshore VS onshore developer?

Offshore developers are cheaper than onshore ones. The main difference between an offshore and onshore software developers lies in the costs incurred by a company at the time of hiring.

When a company has the need to hire a programmer has 3 options:

  1. The company hires a developer to incorporate him into its workforce in its country of registration with the expenses involved: high salary, social security, withholding taxes, extra payments.
  2. The company hires a developer as self-employed staff in its country of residence. The expenses that the company will have will be related to the high prices per hour and VAT payment.
  3. The most beneficial option for the company is to hire a software developer without associated expenses such as social security, VAT, extra payments and withholding taxes.

Is it legal to hire an offshore developer? Where do I find him?

Yes, it is legal to hire an offshore software developer in any country in the world, whether in a tax haven or not. Companies are not doing anything illegal and have no limitations when hiring a "Freelance" because it is possible that in your country of residence you do not find the profile with the desired knowledge.

It is very easy to find an offshore software developer since there are a wide variety of platforms specialized in Freelance jobs on the internet. In our opinion the best platforms are Freelancer, Upwork and Rent-acoder.

When it comes to monitor the hours that the programmer has worked we recommend the use of surveillance software by screen captures. In our opinion the best one is Worksnaps.

Final evaluations

Hiring an offshore software developer has more advantages than disadvantages. The main advantage is tax saving and the disadvantage is that you will not have it in your office physically. Therefore, if your priority is saving money and finding a true talent we recommend risking and hiring an offshore developer.

Offshore software developer



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