Ukrainian developers intending to work or live abroad might encounter different and unfamiliar conditions than what they're used to at home. From different currencies to a new legal framework, issues might arise in the most unexpected ways.
AllSTARSIT is well aware of this unfamiliar environment that some developers might face, and has developed a set of solutions to address these issues.
This article first lays out the main challenges that Ukrainian developers might encounter while working abroad, and then provides the solutions.
In broad terms, Ukrainian developers face three types of challenges when moving and working abroad:
Moving and working abroad, particularly when one intends to do it on a permanent basis, incurs a series of administrative issues. The issue of legalizing the stay should be high on the priority list, particularly considering that someone's stay must be legalized before they're allowed to engage in work.
The outbreak of war in Ukraine displaced millions of people. Many became refugees and were evacuated to nations around the world. A number of software developers moved abroad to start a new life elsewhere. These developers might face different challenges, as every country's rules might differ. Often, these rules are based upon when the developer entered the country.
The conditions in Germany are different:
For those developers who moved abroad before the start of the war in Ukraine, the conditions explained above do not apply.
In this situation, the best course of action for Ukrainian developers who might have moved abroad is to become directly employed by a local company. In many cases, this circumstance enables the developers to apply for permanent residence through their employer.
There currently exist many agreements between countries to prevent double taxation (that is, prevent the worker from paying taxes in their home country and the country where they're working/living. These agreements stipulate the manner in which Ukrainian citizens should pay taxes.
Taxation regulation can be divided into two categories:
If the person is working under an employment contract, this person should:
If a Ukrainian citizen decides to register as a sole trader in any other country than Ukraine, this person should:
It is worth noting that most European countries do not collect income tax on foreign income if the person is not considered a tax resident of this country.
The aforementioned agreements define the regulations around tax residency. For instance, in many European countries, you are not classified as tax resident if you reside in the country less than 183 days per year.
AllSTARSIT proposes two sets of solutions to address all these issues: short term, and long term.
Ukrainians can stay in the country with temporary protection and have a business-to-business (B2B) contract in the chosen country.
Upon termination of the residence under temporary protection, direct employment is the best possible solution.
Hiring Ukrainian staff in Ukraine is still possible. Despite the ongoing armed conflict, Ukraine remains open for business, offering a rather vast and competitive talent pool. AllSTARSIT remains operational in Ukraine, and can still hire staff as needed.
Considering all the circumstances and caveats explained above, the logical question is, which European country suits best to hire a team of developers in, if you already have a team in Ukraine? That decision should be based on taxation & potential pool of software developers to further grow your team.
From this graph, we can clearly see that Central Europe countries have better tax rates then Western and Eastern Europe. But the question remains, how big is the potential talent pool of these countries?
Poland offers some compelling reasons to hire developers in. From its strategic location as a gateway to the west and the east, to the high number of well-trained professionals, Poland offers a range of very attractive arguments for outsourcing, including:
It's worth noting that, while Poland's taxation system is not the most cost-effective in Europe, Poland offsets this by offering the largest number of developers.
Ukrainian developers remain in great demand, for a variety of reasons: excellent and eclectic programming skills, outstanding professional attitude, and commitment to the role, among others.
AllSTARSIT can help you hire qualified developers in any offshore locations where we have a presence, including Ukraine, Poland, Israel, Colombia, and many others.
Our local staff on these countries has experience and expertise in legal and operational challenges that may arise, and can assist you in setting up your own R&D center or tech support site fast and effectively.