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Old 11.09.2019, 14:13
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Freelance remote Software Engineer rate

Hi,

I am in interview process with a Swiss company for a remote job as Software Engineer. I have 4 years experience in software development, but never worked remotely. The job would be full time but I will need to charge and bill the company as a freelance.

The issue here is I have no idea how much should I charge, I looked at permanent average salaries, but not sure if that would apply in my case.

Should I charge more because is freelance? should I charge less because I live in a country with a lower cost of life?

Any advice would be great.
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Old 12.09.2019, 09:01
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Re: Freelance remote Software Engineer rate

You location says "Zurich", So your country with the lower cost of life is Switzerland - right?
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Old 12.09.2019, 10:50
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Re: Freelance remote Software Engineer rate

Maybe they are looking in your country because they want cheap labour, or they are happy to have found you since what you offer is so specialistic that they are willing to offer Swiss rates. So much to wonder about, but one thing is clear:

We have absolutely no clue.
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Old 12.09.2019, 10:53
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Re: Freelance remote Software Engineer rate

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You location says "Zurich", So your country with the lower cost of life is Switzerland - right?
Inference isn’t your strong point , right...
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Old 12.09.2019, 12:22
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Re: Freelance remote Software Engineer rate

The salary you would like, plus employers NI, plus insurances.
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Old 12.09.2019, 12:27
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Re: Freelance remote Software Engineer rate

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I am in interview process with a Swiss company for a remote job as Software Engineer. I have 4 years experience in software development, but never worked remotely.
As always does it depend on the exact skillset and experience but roughly put: I have been in the IT service industry for quite some time and if I was to hire somebody today:
- if you are based in CH, speak the local language and there is any sort of need to have you come to our office once a week or similar: 800 CHF a day.
- if you are offshored in Ukraine, India, God knows where: 25 CHF an hour.
- if you are an EU national and there are some legal requirements to keep the work/data in the EU: a little more, say 35 CHF an hour.


This is just a rough idea, depending on technology, industry and what not else can rates differ.
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Old 14.09.2019, 22:35
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Re: Freelance remote Software Engineer rate

The Rule of thumb: your hourly rate CHF becomes your daily rate in EUR, e.g. 120 CHF/hour becomes 120 EUR/day.



https://de.glassdoor.ch/Geh%C3%A4lte...yRedirect=true


BTW: outsourcing sucks! It's a race to the bottom.
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Old 26.09.2019, 18:44
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Re: Freelance remote Software Engineer rate

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You location says "Zurich", So your country with the lower cost of life is Switzerland - right?
I couldn't set location outside Switzerland, the country is Italy.
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Old 26.09.2019, 19:51
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Re: Freelance remote Software Engineer rate

Try asking what they have in mind before naming your price.
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Old 26.09.2019, 20:20
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Re: Freelance remote Software Engineer rate

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Try asking what they have in mind before naming your price.
That's what she said.
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Old 26.09.2019, 21:16
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Re: Freelance remote Software Engineer rate

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That's what she said.
That's what WHO said? I don't follow.
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Old 27.09.2019, 09:18
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Re: Freelance remote Software Engineer rate

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That's what WHO said? I don't follow.
I am trying to express that you are giving solid advice for anyone offering a paid service of any kind...
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Old 28.09.2019, 13:24
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Re: Freelance remote Software Engineer rate

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As always does it depend on the exact skillset and experience but roughly put: I have been in the IT service industry for quite some time and if I was to hire somebody today:
- if you are based in CH, speak the local language and there is any sort of need to have you come to our office once a week or similar: 800 CHF a day.
- if you are offshored in Ukraine, India, God knows where: 25 CHF an hour.
- if you are an EU national and there are some legal requirements to keep the work/data in the EU: a little more, say 35 CHF an hour.


This is just a rough idea, depending on technology, industry and what not else can rates differ.
35 CHF is still very nice for Italy, but I wonder if there is a specific reason the OP wants Switzerland, since he could get more, or at least the same from american remote companies like automattic
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Old 13.10.2019, 11:44
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Re: Freelance remote Software Engineer rate

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I couldn't set location outside Switzerland, the country is Italy.
Oh dear... I'm afraid your rate is going to be the least of your problems.

To be complaint with Italian law, you will need to register with the local camera di commercio and tax office, obtain a certificate of registration and register for tax.

On the point of tax, will this be your primary / only job? If not, be aware that the Italian taxation system will seriously punish you for having a second income.



You could try avoiding all this and remain under the radar, but given you'll most likely get paid by bank transfer and Italian banks are obliged to report all transfers greater than €1,000, I suspect you'll not remain under the radar very long.

As I'm sure you're aware, Italian bureaucracy is Kafkaesque at the best of times, added to this recent legislation has curtailed what you can charge as a business expense significantly. So, I would get cracking on all that ASAP as it will take significantly longer to do than you'd imagine.
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Old 13.10.2019, 19:48
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Re: Freelance remote Software Engineer rate

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You could try avoiding all this and remain under the radar, but given you'll most likely get paid by bank transfer and Italian banks are obliged to report all transfers greater than €1,000, I suspect you'll not remain under the radar very long.
Who says he has to use an Italian bank?
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Old 13.10.2019, 19:50
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Re: Freelance remote Software Engineer rate

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Who says he has to use an Italian bank?
If one is living in Italy, that would be a logical choice for a bank location, wouldn't it?
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Old 13.10.2019, 20:02
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Re: Freelance remote Software Engineer rate

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Who says he has to use an Italian bank?
Top tip: google “automatic exchange of information”... my German bank, where I live but not work, has realized that most of my money is coming from Luxembourg. So they had to inform the foreign tax authorities about the existence of the account. The days where people could do easy cross border tax fraud in Europe are gone.
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Old 13.10.2019, 21:41
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Re: Freelance remote Software Engineer rate

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Who says he has to use an Italian bank?
As Treverus points out the exchange of information between banks in the EEA, as well as the draconian measures that the Italian government has imposed on banking, has made any 'grey' financial transactions very difficult.


Gone are those happy days when you could be resident in one country, earning in another and opening a non-resident bank account in Switzerland involved only a scan of your passport.
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Old 14.10.2019, 09:13
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Re: Freelance remote Software Engineer rate

I have a friend who spent some years in Google, he saw an advertisement for a remote job paid 1000 CHF / day and said it was "offensive". So I guess the rate we are looking for really depends on expectations and alternatives...

By the way, the job was for Embedded SW engineers with 5 years of experience, remote contract lasting 24 months, automotive sector.

Regarding Italy, one can do it as a company or as a private consultant. When consulting one must ask for a VAT account (Partita IVA, P.I.) and the funny thing is that taxes are paid one year in advance, based on estimation from the last year. If the income goes down, taxes go down the year after, and one must ask for a refund one year later than the payment. Therefore one needs to always have some "buffer money"... It can be a bit of a pain.
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Old 15.10.2019, 21:04
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Re: Freelance remote Software Engineer rate

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Top tip: google “automatic exchange of information”... my German bank, where I live but not work, has realized that most of my money is coming from Luxembourg. So they had to inform the foreign tax authorities about the existence of the account. The days where people could do easy cross border tax fraud in Europe are gone.
That's because of your residence. Within the Schengen area it seems it's quite simple to choose your fiscal residence. If you would be registered to live in Luxembourg, the information would stay in Luxembourg.
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