Why are more and more IT consultants considering relocating abroad?
Summary
Introduction
Ten years ago, an IT consultant talking about moving to Dubai or Lisbon was considered an isolated case. Today, the question comes up in almost every year-end conversation among freelance digital professionals, and the topic is no longer marginal . This isn't a passing fad: several fundamental developments, which have matured simultaneously, have made the choice rational for a specific type of professional.
The IT consulting profession presents a rare combination of characteristics. The service is intangible, the client can be located anywhere, revenues quickly reach high levels, and no physical assets anchor the activity to a specific territory . This combination did not exist on this scale before the widespread adoption of remote work, and it explains a large part of the observed trend.
At Coreway Consulting, we support these professionals across ten jurisdictions studied comparatively , from Dubai to Singapore, including Cyprus, Malta, Mauritius, Andorra, Georgia, Panama, Portugal, and the Bahamas. The common thread in the cases we receive is not the pursuit of a zero tax rate, but rather the desire to understand whether their current situation remains consistent with the reality of their business.
This article is not intended to sell a business. It outlines the six fundamental reasons why this question arises, followed by the practical obstacles that most candidates underestimate. The rates cited are those of the public legal regimes in the relevant jurisdictions , not promises. For a detailed overview by income bracket, our analysis of suitable destinations for businesses with €150,000 in revenue is a useful complement to this article.
The fully remote setup made the exercise location irrelevant.
The primary reason is technical before it is fiscal. Collaboration tools, distributed code repositories, cloud environments, and asynchronous review processes have eliminated the need for co-presence. A consultant deploying infrastructure or auditing architecture does so in exactly the same way whether they are in Nice or Nicosia .
This geographical neutrality has a direct consequence: place of residence once again becomes a choice, whereas it was previously a constraint imposed by the local job market. When a parameter shifts from being a constraint to a variable, it always ends up being optimized . IT consultants are simply reasoning in the same way they would in any other role within their field.
A practice proven by several years of experience
Distributed work is no longer an experiment. French companies that use external service providers have integrated contracting, security, and invoicing processes that operate independently of the provider's location. This operational shift has allayed clients' main concerns , who previously feared a loss of responsiveness.
The question of time zones remains, and it's not a neutral one. A two- to three-hour difference is manageable without friction, while an eight-hour difference requires a profound reorganization of work schedules. This is one of the reasons why destinations close to Europe account for the vast majority of actual departures , far ahead of Asian or Caribbean jurisdictions.
Tax and social pressure has become the primary cost item
The second reason is arithmetic. An independent IT consultant who invoices between €100,000 and €250,000 per year accumulates social security contributions, high marginal income tax, vocational training contributions, and levies on distributions. At this income level, the total frequently exceeds half the value created .
The psychological tipping point isn't the absolute amount, but the moment the freelancer realizes that taxes have become their largest expense , surpassing equipment, insurance, marketing, and training combined. In a business without inventory or premises, this expense becomes highly visible, and therefore a hot topic of discussion.
The role of legal status in the perception of tax burden
A consultant operating as a sole trader quickly reaches the revenue threshold and transitions to a company structure. This transition makes the tax burden clear line by line, with corporate tax, then dividend taxation, and finally personal income tax. This layering of taxes is often the first question asked of a specialist firm.
The comparison with foreign tax regimes then becomes immediate. Corporate tax is 9% above a certain threshold in the United Arab Emirates, 12.5% in Cyprus, 10% in Andorra, and 15% in both Singapore and Mauritius. Malta's shareholder tax refund mechanism reduces the effective tax burden to a very low level , which explains the increasing attention being paid to this European jurisdiction by digital service providers.
It is important to remember a point that is too often overlooked: these rates only apply to a genuinely established business and a genuinely resident individual. In French law , tax residency is based on the permanent home, the principal place of residence, the center of economic interests, and the principal professional activity. Any one of these criteria is sufficient to establish a taxpayer's connection to France .
Clients and platforms now international
The third reason lies in the client base structure. An IT consultant who started out with three regional clients now works for groups with a presence in several countries, internationally funded scale-ups, or software publishers headquartered elsewhere. This geographical dispersion of demand weakens the historical link between the service provider and their home territory.
Intermediation platforms have accelerated this trend. A profile well-positioned on Malt, Comet, or a specialized marketplace receives inquiries that no longer depend on the applicant's city, but rather on their stated skills and ratings. Search engine optimization (SEO) replaces the local network, and geography loses its role as a commercial filter .
A multi-currency and multi-jurisdictional clientele
Billing in euros, pounds sterling, and dollars is becoming commonplace for cybersecurity and data engineering consultants. Managing cash flow, currency conversions, and VAT on cross-border services is becoming more professionalized, and this professionalization makes the idea of a foreign structure less intimidating . What once seemed complex is now simply an extension of established practice.
It is nevertheless important to distinguish between the location of customers and the location of business activity. International tax law focuses on where decisions are made and value is created, not where invoices are sent. This distinction is central to the concept of economic substance , which tax authorities examine as a priority during an audit.
Tax information has become public and comparable
The fourth reason is informational. The tax systems of the main jurisdictions are documented, translated, commented on and updated online. A curious consultant can compare the nominal rates of ten countries in one evening, something that was impossible without specialist advice fifteen years ago .
This accessibility has a mixed effect. It democratizes discussion, but it also spreads dangerous oversimplifications, notably the idea that a displayed rate is enough to determine a choice. Non-residential tax regimes, conditional exemptions, and eligibility thresholds involve conditions rarely highlighted in content intended for the general public.
The Cypriot regime clearly illustrates this gap between appearances and reality. It combines a 12.5% corporate tax rate, an exemption from the defense contribution for non-domiciled residents, and favorable dividend treatment, but it requires an effective local presence and governance. This is why a preliminary feasibility study in Cyprus systematically precedes any decision in our cases.
The trap of nominal interest rate comparison sites
A corporate tax rate says nothing about the total cost. You must also factor in taxes on distributions, local social security contributions, annual compliance fees, mandatory audits in some countries, and the cost of the required physical presence. Two jurisdictions with the same nominal rate can produce very different net results .
Residency statuses designed for qualified profiles
The fifth cause is administrative. Many states have created specific pathways for skilled remote workers, with criteria based on income, insurance, and criminal record rather than quotas. These mechanisms have transformed a once uncertain process into a structured procedure .
The United Arab Emirates issues permits related to the establishment of a free zone entity. Portugal has replaced its former regime for non-habitual residents with a scheme targeting qualified activities. Mauritius offers an occupancy permit for investors and independent professionals, which explains the growing interest in this low-tax Indian Ocean jurisdiction .
The clarity of the procedures changes the perception of risk
An IT consultant assesses an expatriation project in the same way they assess a technical migration: cost, duration, reversibility, and risk of failure. When the steps are documented and the deadlines are clearly stated, the perceived risk drops significantly . This is an explanatory factor often overlooked in purely tax-related analyses of the phenomenon.
This clarity does not negate the need to verify overall consistency. Obtaining a residence permit is not sufficient to change tax residence, and many applications fail precisely because of this misunderstanding. The residence permit grants the right to reside in the country; it does not, in itself, determine the place of taxation .
The need for predictability in the face of normative instability
The sixth reason is less frequently mentioned, but it comes up in almost every interview. Digital freelancers operate within a social and fiscal framework that changes every year, and this instability makes any five-year projections difficult. For a business that requires investments in skills and equipment , the lack of visibility is a cost in itself.
Some jurisdictions have made stability a central selling point. Singapore builds its credibility on the consistency of its tax framework and the quality of its administration, which attracts technology companies with long-term ambitions. This sought-after regulatory predictability in Singapore sometimes carries more weight than a rate differential.
It would be naive, however, to believe that instability stops at France's borders. The global minimum tax, the work stemming from the BEPS project, the automatic exchange of information under the CRS, and the rules concerning controlled foreign companies have considerably reduced room for maneuver everywhere. Purely artificial arrangements are a thing of the past.
This tightening of regulations is not bad news for serious projects. It eliminates competition from opaque schemes and rewards genuine facilities with a real presence, local governance, and substantial activity. A well-understoodbilateral tax treaty remains the best tool for securing cross-border transactions.
What is still holding IT consultants back?
Considering it isn't the same as leaving. Of the ten IT consultants we interviewed, only a minority actually take the plunge within a year, and the reasons for this delay are always the same. The primary reason is family-related: children's schooling, a spouse's career, and the proximity of aging parents carry more weight than any difference in rates .
The second aspect concerns assets. A consultant who owns their primary residence in France, has an outstanding mortgage, and savings held in French accounts must anticipate the treatment of each item. Exit tax applies beyond certain thresholds of shareholdings , and its management sometimes dictates the timing of departure.
The issue of social protection and retirement
Leaving the French system means rebuilding health insurance, supplementary benefits, and a retirement strategy. Previously accrued pension credits remain valid, but new years of contributions depend on the local system, which is sometimes nonexistent. This rebuilding process requires significant preparation , which many only discover much later.
The third point is operational. Some major clients apply restrictive purchasing policies to suppliers established outside the European Union, particularly in regulated sectors. Checking these constraints before making a decision prevents discovering the problem after the structure is in place . This is a standard check in our preliminary audits.
Transforming an intuition into a structured project
Moving from desire to action requires reversing the approach. Many begin by choosing a country, then try to justify that choice. The sound approach is to start with the actual situation, identify the non-negotiable constraints, and then select only the jurisdictions compatible with those constraints .
This method often eliminates half the destinations in a single working session. A consultant who must remain within a three-hour flight of Paris automatically rules out Singapore, Mauritius, and the Bahamas. A consultant whose clients require intra-community invoicing narrows their focus to Europe and its immediate neighbors , making the comparison much clearer.
Three checks before any commitment
First, verify that the tax treaty between France and the jurisdiction in question correctly treats self-employment income and dividends. Next, verify that the required substance is actually achievable, both in terms of days spent on-site and local resources. Finally, verify that the annual compliance cost remains proportionate to the expected gain .
These checks do not replace individual analysis, as two consultants with the same revenue can reach opposing conclusions depending on their family and financial circumstances. A well-documented comparative study on the United Arab Emirates is only valuable when considered in light of the specific constraints of the case. It is precisely this comparative analysis that distinguishes a viable project from a good idea that is ultimately abandoned.
Comparative table of the main jurisdictions
Jurisdiction | Corporate tax | Personal taxation | Relevant IT consultant profile |
Dubai (UAE) | 9% above the threshold | No income tax | High revenues, international clients |
Cyprus | 12.5% | Favorable non-dom regime | European attachment, moderate mobility |
Malta | 35% with cashback | Base for remittance abroad | Digital services structure |
Andorra | 10% | Scale capped at 10% | Proximity to France required |
MAURITIUS | 15% with exemptions | Moderate single rate | Time difference accepted |
Georgia | 15% Estonian model | Reduced diet below threshold | Small, agile structures |
Singapore | 17% | progressive scale | Asian clientele, sustainable business |
This table summarizes public legal schemes and does not constitute a recommendation. Each line covers eligibility conditions, reporting requirements, and thresholds that significantly alter the final result . Only an individual assessment can determine eligibility.
Testimonial from a DevOps consultant based abroad
A thirty-eight-year-old DevOps consultant, specializing in the industrialization of cloud platforms, contacted us after three years of hesitation. He was billing four clients, three of whom were French, and was already working remotely from his home in the provinces. His initial question concerned Dubai, simply because of its reputation .
Analysis of her situation revealed two key constraints. Her spouse practiced a regulated profession that was difficult to transfer outside the European Union, and two of her clients contractually required a service provider established within the European area. These factors immediately ruled out non-European destinations , regardless of their tax advantages.
The case was ultimately referred to a European jurisdiction that was compatible with its contractual obligations, with the family having effectively settled there, a presence far exceeding the required number of days, and documented local governance. Eighteen months later, the situation is stable and no objections have been raised by the relevant authorities .
He sums up his journey today in a sentence we often quote: the hardest part wasn't choosing a country, but accepting that non-tax considerations actually determined half the case . This testimony has been anonymized at his request.
Frequently Asked Questions
Why does this movement particularly concern IT professions?
Because the service is intangible, the clientele geographically dispersed, and the income quickly becomes substantial. This combination is rare and makes the place of residence truly a matter of choice, which is not the case for a local craftsman or shopkeeper.
Is it enough to spend less than 183 days in France to no longer be taxable there?
No, and that's the most common mistake. French law also considers the permanent residence, the center of economic interests, and the location of the principal activity. Meeting only one of these criteria is sufficient to maintain French tax status.
Can an IT consultant retain their French clients after leaving the company?
Yes, in the vast majority of cases, provided that the purchasing policies of key accounts and the VAT treatment of cross-border services are verified. However, some regulated sectors require a service provider established in the European Union.
Does the global minimum tax make these approaches obsolete?
No, because it targets groups with very high consolidated revenues. However, it reflects a fundamental trend towards consolidation, which values tangible assets and disqualifies structures lacking substance.
What is the first thing to check before starting?
The compatibility between non-negotiable personal constraints and the jurisdictions under consideration. Starting with the country rather than the constraints almost always leads to a project being abandoned along the way.
How much time should be allowed between the decision and the actual installation?
The timeline depends on the jurisdiction, the intended residency status, and the handling of existing assets. Several months of preparation remain the norm, particularly when equity stakes or real estate need to be disposed of.
Are you an IT consultant wondering if your current situation is still optimal? You can request a personalized study from Coreway Consulting to compare your actual constraints with the ten jurisdictions we support.
