Top 3 Cities for Software Engineers in Europe (2023)
Compare tech salaries in Europe's top 3 cities: Zurich engineers save $93k/year, Amsterdam $65k with 30% ruling, London $43k. Full salary data, taxes, and cost of living breakdown.
With today's article I want to list what I believe are the top 3 cities in Europe for software engineers.
Before I start, I would like to note that the best city in Europe to work as a software engineer can be a subjective matter: a lot of it depends on what each person values and is looking for in terms of opportunities, field they want to work in, skills or background they have, lifestyle they seek and so on.
3rd Place - Amsterdam
A "typical" European city in terms of culture and lifestyle, Amsterdam is a really great place to live and work as a software engineer.
Home to one of Europe's top tech market with relatively high salaries, great welfare and services, plenty of things to do for both families and young people, bikeable, safe and with opportunities for a healthy work-life balance, it safely makes this top 3 list in my opinion.
Salaries (in USD)
| Level | Traditional Companies | Big Tech |
|---|---|---|
| Entry-level | $40k - $80k | $70k - $120k |
| Mid-level | $60k - $110k | $90k - $170k |
| Senior | $80k - $160k | $140k - $240k |
Browse current tech jobs in Amsterdam →
Taxes & Take-Home Pay
Note 1: If you are an expat, for the first 5 years in the Netherlands you can take advantage of the 30% Ruling and pay lower taxes; after these 5 years (or if you're Dutch) your taxes will be higher.
Note 2: Keep in mind that a lot of things like healthcare, schools and universities are tax-paid in the Netherlands, so you'll benefit from a lower cost of living, especially if you have kids or need a lot of health treatments.
| Total Compensation | Tax Rate (Regular) | Tax Rate (30% Ruling) |
|---|---|---|
| $70k USD | 33% | 17% |
| $100k USD | 40% | 23% |
| $150k USD | 44% | 29% |
Cost of Living
(Assuming a similar standard of living that 6500 USD/month would give you in NYC)
3,500 USD/month or 42k USD/year
Savings Potential
(assuming spending equivalent to 6500 USD/month in NYC)
| Total Compensation | Without 30% Ruling | With 30% Ruling |
|---|---|---|
| $70k USD | $5k/year | $15k/year |
| $100k USD | $18k/year | $35k/year |
| $150k USD | $42k/year | $65k/year |
Companies with Notable Offices in Amsterdam
- Uber
- Databricks
- Booking
- Optiver
- IMC
- Amazon
- Adyen
- MessageBird
- ING
- Flow Traders
Lifestyle
Weather: Not the most sunny place, but also doesn't get extremely cold
Expat friendliness: Amsterdam is very international and while it might not be extremely easy to build relationships with a lot of locals, it should be relatively easy to meet other expats
Misc: Great bars, restaurants and clubs; not a lot of nature; amazing if you like biking around
Conclusion
If you're a young expat engineer and get an offer from a good company in Amsterdam, you can move there and enjoy the lower taxation granted to you with the 30% ruling for 5 years. You can stay there for a few years, have a good income and saving rate, gain valuable experience, hopefully have a good time, and afterwards you can decide if you want to continue staying there (maybe with your family) or relocate somewhere else.
One caveat/update: The Netherlands still has the expat tax advantage, but it is undergoing changes which reduce its impact. For example, if you're a new expat, your tax-free salary percentage will decrease from 30% to 20% after 20 months of moving there, and to 10% after another 20 months.
2nd Place - London
A great place to be in Europe as a software engineer is London. By far the most cosmopolitan city on this list, it offers the largest amount of quality tech companies with office in Europe, in addition to a lot of tech opportunities in hedge funds and finance in general. It is also the most welcoming city for expats, with English being the country language and with large communities of second and third generation immigrants from India and China.
Salaries (in USD)
| Level | Traditional Companies | Big Tech |
|---|---|---|
| Entry-level | $50k - $90k | $80k - $140k |
| Mid-level | $70k - $110k | $90k - $170k |
| Senior | $80k - $160k | $170k - $320k |
Explore London tech opportunities →
Taxes & Take-Home Pay
Note: Some things like healthcare are tax-paid in the UK, others are more expensive especially universities.
| Total Compensation | Tax Rate |
|---|---|
| $85k USD | 32% |
| $110k USD | 35% |
| $160k USD | 37.5% |
Cost of Living
(assuming same standard of living that 6500 USD/month would give you in NYC)
4,700 USD/month or 56.4k USD/year
Savings Potential
(assuming spending equivalent to 6500 USD/month in NYC)
| Total Compensation | Annual Savings |
|---|---|
| $85k USD | $1.5k/year |
| $110k USD | $15k/year |
| $160k USD | $43.6k/year |
Companies with Notable Offices in London
- Snap
- Jane Street
- Coinbase
- Apple
- Amazon
- Hudson River Trading
- Citadel
- ByteDance
- Two Sigma
Lifestyle
Weather: Similar to Amsterdam
Expat friendliness: London is extremely international and as an expat you could probably feel at home relatively easy there
Misc: Amazing bars, restaurants and clubs; not a lot of nature; can feel a bit hectic or stressful at times; pollution typical of a large city
Conclusion
If you are looking for a place that you can commit to and where you can confidently prepare for and target big tech companies or high-growth startups, London will offer you the similar-most experience to what you could get in the US: be it having multiple big tech companies having similar interview processes and compensation ranges, interesting startups with equity upsides, hedge funds or even large European tech companies with large offices.
This, in addition to the networking opportunities the city offers, the amount of startups being created and the unicorns operating there, makes London the best place in Europe for opportunities and career growth.
It is also a great place for singles and people early in their career, with plenty of things to do in your free time: culture, restaurants, nightlife, events and so on.
Of course, being a large city, you also have most big cities' problems such as pollution, crime, commute and so on. But I think it is still better than most big cities in the US, for example.
If you're not planning to have a career in top companies though, and want to have a 'chill' developer life, then London might not be the best place: there are many low paying dev jobs there, and the city is big and has a bit of a stressful vibe to it while also being quite expensive, so it might not be worth it to live the 'hustle' life there without a high pay.
Number 1 - Zurich
Zurich is the city in Europe with the highest salaries for software engineers and with the lowest taxes, making it the best city for software engineers in Europe to increase their savings. This is on average, with the caveat that Zurich is also quite small, and the tech employment market there is a bit limited (even if you were to include other cities across Switzerland).
This on one hand makes it difficult to find any job, and on the other hand can also potentially limit your career growth by not giving you a lot of opportunities. That said, there are ways to make up for the small market size, such as doubling down on networking and/or choosing companies and teams with large scope.
Salaries (in USD)
| Level | Traditional Companies | Big Tech |
|---|---|---|
| Entry-level | $80k - $110k | $150k - $220k |
| Mid-level | $100k - $140k | $190k - $280k |
| Senior | $130k - $170k | $270k - $380k |
Find high-paying tech jobs across Europe →
Taxes & Take-Home Pay
Note: Some things like universities are free, healthcare is semi-private which means residents need to pay a mandatory health insurance of around 300-600 USD/month.
| Total Compensation | Tax Rate |
|---|---|
| $110k USD | 24.5% |
| $180k USD | 30% |
| $250k USD | 34% |
Cost of Living
(assuming same standard of living that 6500 USD/month would give you in NYC)
6,000 USD/month or 72k USD/year
Savings Potential
(assuming spending equivalent to 6500 USD/month in NYC)
| Total Compensation | Annual Savings |
|---|---|
| $110k USD | $11k/year |
| $180k USD | $54k/year |
| $250k USD | $93k/year |
Companies with Notable Offices in Zurich
- Snap
- NVIDIA
- Microsoft
- Apple
- Oracle
- Snyk
- GetYourGuide
- UBS
- Swisscom
Lifestyle
Weather: A little bit better than London and Amsterdam, slightly less rainy, a bit more sunny, very clean air
Expat friendliness: Zurich is quite international but people complain that it's hard to make friends with locals
Misc: Lots of great nature including amazing mountains, rivers and lake; well located in Europe and great for travelling; quiet city which makes it laid-back but also a bit boring for some people
Conclusion
It is a great city for families and people who love the outdoors, and also for people who are trying to maximise their savings in a short amount of time. It lacks some big city amenities, yet it still has enough of it for most people.
Final Comparison: Savings Rankings
Here is how the three cities compare, ranked from highest to lowest savings rates:
| Compensation Level | Zurich | Amsterdam (30% ruling) | London | Amsterdam (no ruling) |
|---|---|---|---|---|
| ~$100k | $11k/year | $35k/year | $15k/year | $18k/year |
| ~$150k | $54k/year* | $65k/year | $43.6k/year | $42k/year |
| ~$200k+ | $93k/year* | N/A | N/A | N/A |
*Based on higher salary levels: $180k and $250k for Zurich
Compare salaries and savings across European cities →
Final Conclusion
In terms of lifestyle:
- London appeals to those who enjoy big city energy and maximum career opportunities
- Zurich is perfect for outdoor lovers and those maximizing savings
- Amsterdam offers a balanced mix of city amenities and livability
The calculation was done using 6500 USD/month NYC lifestyle, which is probably more than what most junior engineers will be spending, but which can also be relatively easily reached if one indulges a bit more or has a spouse and/or kids to support.
Frequently Asked Questions
Which European city pays software engineers the most?
Zurich offers the highest salaries for software engineers in Europe, with senior engineers at big tech companies earning $270k-$380k USD annually. Combined with relatively low taxes (24.5%-34%), Zurich provides the best earning potential in Europe.
What is the best city in Europe for software engineers to save money?
Zurich is the best city for maximizing savings, with mid-level engineers at big tech companies able to save around $54k USD per year, and senior engineers potentially saving $93k USD annually. While the cost of living is high ($72k/year), the high salaries and low taxes make it ideal for building wealth.
Should I choose Amsterdam or London as a software engineer?
It depends on your priorities:
- Choose London if you want maximum career opportunities, networking, and startup ecosystem access
- Choose Amsterdam if you value work-life balance, livability, and can benefit from the 30% ruling tax break as an expat
Amsterdam offers better savings potential with the 30% ruling, while London has 10x more tech companies and career growth opportunities.
What is the 30% ruling in Amsterdam?
The 30% ruling is a tax advantage for expat workers in the Netherlands, where 30% of your gross salary is tax-free for up to 5 years. However, recent changes mean this benefit decreases to 20% after 20 months and 10% after 40 months. It significantly improves your take-home pay and savings rate.
How much can a senior software engineer save per year in Europe?
Based on big tech salaries:
- Zurich: $54k-$93k USD per year
- Amsterdam (with 30% ruling): $65k USD per year
- London: $43.6k USD per year
- Amsterdam (without 30% ruling): $42k USD per year
These figures assume a NYC-equivalent lifestyle costing $6,500/month. See detailed salary and savings data →
Are tech salaries in Europe really lower than the US?
Yes, but the gap is narrowing, especially in cities like Zurich and London. While US senior engineers might earn $300k-$500k+ at FAANG, European senior engineers earn $170k-$380k. However, Europe often has lower healthcare costs, better work-life balance, more vacation days, and in some cases (like Zurich), comparable savings potential after accounting for cost of living.