For a commercially successful software engineering project, location matters. You might know that moving offshore has been an ongoing trend in the IT industry since the 2000s.

Global hiring should get even more attention after software engineer demand has grown by 17% in 2024. For business owners looking for cost-effective strategies or wondering how to find developers for startup projects, expanding the hiring geography remains a proven optimization approach.

If you’re exploring countries with high demand for software engineers, it’s clear that regions like the USA, Canada, and Europe continue to lead the way due to their booming tech industries and increasing need for skilled talent. The highest average compensation for developers is:

• $117K in the USA;

• $91K in Canada.

All those figures could be the reasons for tech business owners to increase hiring budgets (which is not always possible) or to negotiate developer’s compensation. Yet, we’d opt for expanding the hiring geography as a proven optimization strategy.

In this article, we'll take you on a journey through some of the best countries for software engineers to consider in 2024 and the upcoming years. Whether you're searching for the best country for developers to expand your team or looking for skilled talent that combines expertise with cost-effectiveness, the destinations we cover stand out as top choices.

What is The Best Country for Software Developers: 9 Options

In the remote era, one can build a software engineering career from any part of the world. At the same time, when a company narrows down its search to several geographical areas with the biggest IT clusters, it wins a bunch of time in finding the best country for software engineer talent that aligns with their goals.

Where Do Skilled Techies Crowd: Best Countries to Work as a Software Engineer

When building a remote team, companies often focus on regions with strong IT clusters. Exploring the top countries for software engineer talent ensures access to professionals with solid technical backgrounds, cost advantages, and reliable infrastructure.

#1. Poland

Poland has an ideal blend of cost-effectiveness and a supportive legislative environment.

• Polish robust data protection laws and cybersecurity regulations ensure the safety of software projects.

• With its nearly 600,000 IT specialists, Poland is the “Silicon Valley of Europe”, making it an enticing destination for companies looking to gather a team for software development projects.

• Google has pledged to construct a Cloud Data Hub in Warsaw with a budget of two billion US dollars.

• The Warsaw campus for startups curated by Google has welcomed over 100,000 startups and community members.

#2. Armenia

Nestled in the South Caucasus region, Armenia may not be the first country that comes to mind when you’re thinking about the best countries to work as a software engineer. Yet, it's a hidden IT hotbed worth exploring.

• The country's legislation supports intellectual property rights and data protection, making it a secure environment for software development.

• Armenia's competitive pricing and skilled professionals are driving the growth of its tech industry.

#3. The Czech Republic

With a strong emphasis on STEM education and a favorable legislative environment, The Czech Republic belongs to the best countries for software engineers for software engineers.

• Data protection and intellectual property rights are rigorously enforced, ensuring the security of software projects.

• Czech corporate income tax is 19%. It’s flat and one of the lowest in Europe.

• The country's competitive operational costs, combined with its central location in Europe, make it a strategic choice for software development.

#4. Portugal

Portugal, with its picturesque landscapes and rich history, has more to offer than just tourism. It's rapidly becoming a nominee for “The Best Country for software developers”, known for its balanced lifestyle and skilled specialists.

• The country's legal framework is pro-business, with incentives for tech startups and foreign investment.

• Developers in Portugal benefit from a high quality of life and relatively affordable living costs, making it an attractive place to code their way to success.

Portugal stands out as one of the most welcoming countries for cryptocurrencies in Europe.

• Portugal provides a tax-free status for crypto assets, attracting crypto traders and investors.

#5. Spain

Spain, renowned for its vibrant culture, is making its mark as a tech hub for software engineers.

• The country's legal framework is well-structured, offering strong protection for software projects and intellectual property.

• Spain has one of the best telecom infrastructures in Europe, and robust network coverage is one of the decision-making factors when assembling a remote team.

• Spain's unique blend of tech innovation and the Mediterranean lifestyle provides a compelling reason for software developers to consider this sunny destination one of the best countries to live in as a software engineer.

#6. The Baltic States

Politically, Estonia stands out as one of the most stable countries in the Central and Eastern European region. The country actively adopts e-government solutions and prioritizes cybersecurity.

• Estonia is the host of NATO's cybersecurity center and the IT agency of the European Union.

• Skype, TransferWise, and Pipedrive were born in Estonia.

• Microsoft, Parallels, and SAP have located R&D centers there.

Moreover, the use of cryptocurrencies is sanctioned within Estonia, and the price for crypto licensing is relatively low, which makes this jurisdiction a country of choice for numerous cryptocurrency companies and startups.

• Transactions involving crypto assets are subject to taxation like traditional business assets.

• Estonia meets KYC requirements for crypto-related services.

The list of benefits for Latvia and Lithuania is also attention-worthy.

• Such tech behemoths as Google, Nasdaq, Uber, IBM, Wix, and HP collaborate with Lithuanian specialists and host their R&D centers in this country.

• Latvia has chosen the Estonian pass to success, so it’s better to pay attention to the Latvian programmers before this destination becomes too popular.

Estonia, Latvia, and Lithuania have nearly 150,000 IT specialists working in the actively developing companies and about 3000 students graduating from tech educational institutions each year. It looks like those countries have the potential to be included in your personal chart of the best countries for a software engineer and nearshore or offshore destinations for software development.

Best Countries to Live as a Software Engineer

If you aim to increase the developer’s life cycle within your tech project and get the most stable outcomes possible, think of your team’s recharging. Vacations are a great invention of humanity, but what if specialists are satisfied with their daily lives? Then, they don’t build up the fatigue waiting for the certain dates and prevent burnout as a result.

Wonder if the best country for software engineers could be not less comfortable than the USA or Canada? Well, we’ve outlined those IT-friendly jurisdictions which go side by side with the USA and Canada in the world ranking by the Quality of Life Index.

#7. Romania

While many businesses talk of Romania's cost-effectiveness, the country also strengthens its skilled talent.

• Romania is 5th country in EU with the number of women IT professionals with IT&C studies and employed in IT sector.

• The country is one of the most competitive in the region thanks to the flat corporate tax rate of 16%, which benefits IT sector growth.

• Local specialists have a good command of English, which facilitates their cooperation with international businesses.

#8. Brazil

Brazil is an attractive destination with one of the biggest economies in LATAM. Its tech talent pool increases steadily, being fueled by a strong government support.

• According to Statista, the estimated annual growth of the software market in Brazil is expected to be 5.98% from 2024 to 2029.

• When we say strong government support, we mean it. For example, Brazilian government has launched Start-Up Brazil, the program aimed at supporting local technology-based companies.

• A significant number of Brazilian developers specialize in such areas as cloud computing, AI, and mobile app development, meeting the market demands.

Working with specialists from Brazil can be a good option if your business operates in North America. The benefits include developers’ competitive rates and the proximity of the time zones.

#9. Chile

Chile is more and more characterized with a favorable business environment, offering dynamic tech sector. Businesses choose Chilean competitive talent for a reason.

• Chilean government support IT sector development with favorable tax initiatives and benefits for companies operating in specific sectors.

• Situated at the Pacific Coast, Chile offers a strategic access both for North and South American markets.

• Investing heavily in digital transformation, the country leads mobile connection penetration in the region and prioritizes migration to the cloud.

With affordable costs and Chilean developers specializing in AI, data analytics, and Agile methodologies, the country stands competitive among its regional counterparts.

Best Countries to Live as a Software Engineer

If you aim to increase the developer’s life cycle within your tech project and get the most stable outcomes possible, think of your team’s recharging. Vacations are a great invention of humanity, but what if specialists are satisfied with their daily lives? Then, they don’t build up the fatigue waiting for the certain dates and prevent burnout as a result.

For companies evaluating how much does it cost to hire a programmer, balancing quality of life with competitive developer rates makes destinations like Spain, Portugal, and the Baltics attractive options.

Wonder if the best country for software engineers could be not less comfortable than the USA or Canada? Well, we’ve identified some of the best countries for programmers that offer competitive opportunities and favorable living conditions. They go side by side with the USA and Canada in the world ranking by the Quality of Life Index.

Quality of Life Index in IT-friendly Zones: Comparison

Hiring Abroad: How to Make It Robust and Simple

Whether you're a software engineer looking for exciting career opportunities or a business owner seeking a cost-effective and innovative destination for software development, the countries we’ve observed are the best places for software engineers to thrive. The best countries for web developers offer a blend of skilled talent, affordability, and supportive business environments.

The place of residence impacts software engineers' performance by influencing productivity, collaboration, and access to resources. Developers in tech hubs benefit from better infrastructure and networking, driving innovation. In isolated areas, challenges like limited connectivity or work-life balance issues can arise. However, remote work enables businesses to access top-tier talent globally, provided they foster strong communication and collaboration cultures.

Ayush Trivedi CEO at Cyber Chief

For long-term hiring needs, partnering with providers offering permanent recruitment services can help you secure top talent while simplifying legal and administrative processes.

Once you’ve built your team, consider implementing goal-setting frameworks like OKRs to drive performance. Reviewing OKR examples for software engineers can help align objectives with measurable results, ensuring your global team delivers on key milestones efficiently.

If you're specifically targeting Europe, this list highlights some of the best countries for software engineers in Europe, combining strong technical expertise, affordability, and business-friendly environments.

But what if you’re already doing your IT business in the USA, UK, or Germany, for instance? In such a case, it’s also possible to reap the benefits of hiring developers in those 10 IT hubs from the list. Basically, you have 2 options.

• Open a legal entity in the target country;

• Consider Employer of Record services.

Translating EOR into the business benefits: you get an official representative who hires specialists internationally and is the only party responsible for the legal relationships with your hires. Yet, you fully control the workload of those hires and directly shape the project results.

If you choose Outstaff Your Team as your EOR partner, we also can:

• Define the best country for software developers hiring according to your unique business goals;

• Analyze talent market taking into account developer rates and tech stacks you specify;

• Recruit and onboard the best matching candidates;

• Provide full-cycle talent management services to retain your specialists.

• Get a high level of data protection due to our certifications like GDPR and CCPA.

FAQ

by Kateryna Balakyreva
on December 13, 2024. Share on LinkedIn Post on Twitter

Kateryna joined the IT industry 3 years ago. Reviewing B2B software and related frameworks, she concluded that the best-in-class programs need well-built teams and started to write about tech teams scaling. Her natural habit to improve texts and search for alternative visions comes from working at the publishing house in early youth.