Three Quarters of Contractors Want to Work Abroad

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Three Quarters of Contractors Want to Work Abroad

Most contractors 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 by working abroad

Over three quarters (77%) of all contractors would like to work abroad, reveals a survey by professional services company Procorre.

However, many contractors 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 top three reasons given why contractors would like to work abroad are:

A higher take home pay (post-tax) (55% of contractors said that this was a reason for wanting to move abroad)
A better work-life balance (52% of contractors said that this was a reason for wanting to move abroad)
To experience working and living abroad (44% of contractors said that this was reason for wanting to move abroad).

Higher take home pay (post-tax) can be the result of higher salaries 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, says Procorre.

Tax benefits and higher salaries are a real temptation for contractors who are considering working abroad. For those willing to make the move there are some highly rewarding opportunities abroad. However, the attractive benefits packages and greater take-home pay are often there to entice contractors to remote or even dangerous locations.

The top three concerns about working abroad are:

Security risks (52% of contractors said that this was a concern about working abroad)
Family don’t want to relocate (30% of contractors said that this was a concern about working abroad)
Don’t want to leave family and friends behind (27% of contractors said that this was a concern about working abroad).

Relocating to dangerous areas can be a troubling prospect. Many employers will help the contractor with personal security for themselves and their family. But some contractors often need help negotiating with their employer over personal security arrangements.

The top three biggest problems faced by contractors moving abroad were:

Obtaining a work permit (49% of contractors said that this was a problem when moving abroad)
Dealing with tax authorities (45% of contractors said that this was a problem when moving abroad)
Understanding the expenses system (40% of contractors said that this was a problem when moving abroad).

Do you agree with these findings? Let us know at expats@expatnetwork.com.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.