5 Underrated Countries for Software Engineers in Europe You Haven't Considered

Thinking about “moving to Europe as a software engineer” and your brain auto‑completes to Berlin, Amsterdam, London… maybe Zurich if you like pain-level rent? You’re missing the real game.

When we ran the numbers in CodeCapitals across 20 countries and 32 cities, a bunch of supposedly “second tier” places came out ahead of Germany, France, and even some Nordic hubs on the metric that actually matters: how much you can save per year. These are the underrated countries for software engineers in Europe that quietly let you live well and stack serious cash.

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Key Takeaways / TL;DR

• The real winners are not who you think: In our dataset, Serbia ranks #1, Romania #2, Finland #5, Bulgaria #6, and Lithuania #7 for developer savings – all beating the usual “big brand” countries.
• Savings are very real: Average yearly savings (after tax & cost of living) reach €21,833 in Serbia, €32,142 in Romania, €42,154 in Finland, €20,470 in Bulgaria, and €38,820 in Lithuania.
• Why they win: Lower taxes, cheaper rent, rising local salaries and the ability to combine remote Western pay + Eastern/Nordic cost bases make these hidden gem countries for developers absurdly efficient.
• Quality of life is not a downgrade: You’re not trading your life away for cheap rent. Most of these markets have vibrant tech hubs, good English levels, and decent (or excellent) infrastructure.
• Who should seriously consider them: Mid/senior devs with remote options, FIRE‑oriented engineers, and anyone willing to trade Berlin/London status points for actual wealth.

If you want the macro picture first, read this later: Best Countries for Software Engineers 2026: Complete European Rankings with Salary & Tax Data.

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Why are these “unknown” countries beating Germany and France for developers?

Because Germany/France give you big gross numbers and mediocre net outcomes. The underrated countries software engineers in Europe should look at instead are places where taxes + rent + lifestyle costs are sane, while tech salaries have quietly caught up or can be imported remotely.

In our data:

• High‑prestige hubs like Berlin, Amsterdam, London, Zurich deliver great salaries but brutal costs and tax drag.
• The “best unknown tech countries Europe” deliver mid‑to‑high salaries + much lower costs, especially if you:
  • Work fully remote for US/UK/German companies, or
  • Join international product companies with local offices (often at 70–80% of Western packages, not 30–40%).

If you’re serious about FIRE in Europe and geo‑arbitrage, this is literally the playbook. I’ve broken this down in more detail in:

• Geo-Arbitrage for Software Engineers: Earn Western Salaries, Live in Low-Cost Europe
• Central Europe for Software Engineers: Why Poland, Serbia, and Bulgaria Offer the Highest Purchasing Power in Europe

Now let’s go country by country.

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1. Is Serbia really the #1 country for software engineer savings?

Yes – Serbia comes out #1 in our country rankings for savings, with developers reporting ~€21,833/year left after tax and living costs. It’s not the highest paid market in absolute euros, but the combo of moderate taxes, very low housing costs and a booming tech scene makes it one of the biggest geo‑arbitrage winners in Europe right now. 🏆

What makes Serbia a “hidden gem” country for developers?

Several things line up:

• Tax & cost combo: Competitive income tax, relatively low social contributions, and world‑class cheap rent (especially outside premium Belgrade locations).
• Strong English & international work: Belgrade in particular has a ton of outsourcing, product companies, and remote‑friendly teams.
• Realistic salary ranges:
  • Local senior dev roles: €40k–€70k gross
  • Remote EU/US roles while based in Serbia: €80k–€150k+ gross (depending on stack and leverage)
• Lifestyle: Cafés, nightlife, social culture, and still a sense of “you’re in Europe, not a random offshoring outpost”.

Belgrade is actually one of the top cities in our CodeCapitals dataset, with 22 submissions (solid sample) and strong savings scores, right up there with Warsaw and the mid‑tier Western hubs.

What’s the catch?

• Non‑EU (for now): Visas, residence permits, and travel flexibility aren’t as plug‑and‑play as moving within the EU.
• Currency & political risk: You’re taking a bit more macro risk compared to, say, Finland or Lithuania.
• Career branding: “Based in Belgrade” doesn’t impress clueless recruiters the way “Berlin” or “London” does – you’ll need to compensate with portfolio, OSS, and top‑tier company names.

Who should consider Serbia?

• Senior devs with strong remote opportunities and a FIRE mindset.
• EU citizens who can move freely and want a low‑cost base + frequent travel.
• Founders & indie hackers bootstrapping a SaaS business while keeping burn extremely low.

If Serbia intrigues you, you’ll like this strategy piece:
Geo-Arbitrage for Software Engineers: Why Poland Leads Europe for Remote Workers in 2025 – the same logic applies, just swap Warsaw for Belgrade.

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2. How is Romania ranked #2 with €32k/year savings?

Romania lands at Rank #2 in our country list with a very impressive €32,142/year average savings. That’s more net savings than many devs manage in Germany or France, even when nominal salaries are lower.

Why does Romania punch so far above its reputation?

• Tax advantage: Historically favourable flat tax structures and relatively competitive social contributions.
• Rising salary levels: Especially in Bucharest, Cluj, Timisoara, Iasi, where foreign companies aggressively hire:
  • Mid‑level dev: €30k–€50k gross
  • Senior / lead / cloud roles: €50k–€90k+ gross
• Remote & nearshore work: Tons of German, French, UK, and US companies run engineering centres or remote teams out of Romania.
• Reasonable cost of living:
  • Rent for a decent 1‑bed in Bucharest: €400–€700
  • Outside Bucharest: even lower.

Bucharest is one of our top cities overall, but note: only 12 submissions so far → limited dataset. Early indicators are strong, but I’d treat the exact ranking as “directionally correct, not absolute truth.”

Lifestyle & quality-of-life surprises

Romania is not what your 2010 stereotypes tell you:

• Bucharest and Cluj have vibrant café culture, restaurants, nightlife, English‑friendly younger population.
• Mountains, countryside, and the Black Sea are all reachable for cheap weekend trips.
• Internet speeds are insane.

The downsides?

• Bureaucracy and infrastructure gaps outside main cities can be annoying.
• Healthcare and public services are still catching up to Western Europe.
• Some people will still mentally file it under “outsourcing land,” so you’ll need to anchor your CV with strong companies/roles, not just location.

Romania is a perfect example of an emerging tech market in Europe where getting in early can mean:

• Faster promotions
• More impact
• Less competition for top roles

Read this next if you’re comparing North vs East:
Romania vs Finland for Software Engineers: Complete Comparison 2026

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3. Why is Finland an “underrated” Nordic tech country with €42k savings?

Finland quietly slides into Rank #5 with a massive €42,154/year average savings – which puts it right in Zurich/London territory in terms of net outcomes, but with better work‑life balance and usually more sane housing.

Wait, isn’t Finland already famous?

Yes and no.

People know “Nordics = good.” But when developers think “big tech in Europe,” they default to London, Berlin, Zurich, Dublin. Finland is still one of the best unknown tech countries in Europe for actual savings when you consider:

• High salaries at Nokia, Supercell, Wolt, Rovio, large SaaS companies, and international R&D centres.
• Very strong social safety net and work‑life culture.
• Reasonable housing (still far from cheap, but often better value than Stockholm/Copenhagen).

Our Helsinki sample is only 8 submissions → limited data, so treat numbers as a directional signal, not gospel. But everything lines up with anecdotal reports: senior engineers in Helsinki routinely save €30k–€50k/year without living like monks.

Pros for software engineers in Finland

• Salary ranges (rough):
  • Mid‑level: €55k–€75k gross
  • Senior: €70k–€110k+ gross (Big Tech / top product companies can go higher)
• Work‑life balance: Nordic norm: paid parental leave, 5+ weeks vacation, rarely obnoxious on‑call.
• Quality of life: Safe, clean, excellent public transport, strong English, easy integration if you’re not allergic to winter.

Cons & trade‑offs

• High taxes on paper: Your gross might look painful next to a Swiss or Dubai offer, but when you compare net + benefits + stability, Finland holds up surprisingly well.
• Weather and darkness: Not a meme. Seasonal depression is real for some; factor it into your decision.
• Sample size: Our Finland data is still early; I’d use external benchmarking + local salary reports alongside this.

If you’re drawn to the Nordics generally, dive into:
Nordic Tech Jobs 2026: Work-Life Balance Meets High Salaries in Scandinavia

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4. How does Bulgaria make the top 10 with over €20k/year savings?

Bulgaria sits at Rank #6, with €20,470/year average savings for developers in our dataset. That’s extremely solid given how low the day‑to‑day cost of living is, particularly outside the pricy expat bubbles.

Why Bulgaria is a classic geo‑arbitrage play

Bulgaria is one of those hidden gem countries for developers that ticks all the remote‑worker boxes:

• Low taxes (especially if you set yourself up correctly as a contractor or business).
• Very cheap rent and food relative to Western Europe.
• A presence of international companies in Sofia, Plovdiv, Varna, etc.
• Growing local product/startup scene.

Our Sofia sample is only 10 submissions → limited, but numbers are consistent with what I see from clients and friends:

• Local senior dev roles: €35k–€60k gross
• Remote EU/US roles while based in Bulgaria: €80k–€140k+ depending on stack and negotiation.

Lifestyle trade‑offs in Bulgaria

Pros:

• Mountains + sea + ski resorts within reasonable reach.
• Café culture, low daily stress, and still “proper Europe.”
• English is workable in tech circles.

Cons:

• Public infrastructure and healthcare lag Western standards.
• You will need to DIY your safety net if you optimise purely for lowest tax regimes.
• Again, career branding: Sofia doesn’t scream “global tech capital” yet, so build credibility via companies, projects, and outcomes.

Bulgaria shows up repeatedly in our low‑cost, low‑tax analyses:
Best Low-Cost Low-Tax Countries for Fully-Remote Devs In Europe

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5. Why is Lithuania quietly ranking #7 with almost €39k/year savings?

Lithuania takes Rank #7, with €38,820/year average savings – which is absolutely wild given how few people even mention Vilnius or Kaunas when talking about tech careers.

What’s driving Lithuania’s strong ranking?

• Rapidly growing tech & fintech scene, especially in Vilnius (lots of EU fintech licenses, shared service centres, and product companies).
• Salaries rising faster than costs, particularly in senior and cloud/data roles.
• Solid English proficiency and integration with the wider EU market.

Savings in the €35k–€40k/year range typically mean:

• Senior devs working locally on €50k–€80k gross, living reasonably.
• Or remote workers pulling €80k–€120k+ gross, enjoying low local costs.

Lithuania flies under the radar compared to Poland, but for someone willing to be slightly off the main tourist path, it’s a fantastic emerging tech market in Europe.

Lifestyle & living considerations

• Compact cities, decent infrastructure, good internet, lots of cafes and co‑working.
• Cold winters, but less brutal than some Nordic regions; summers can be very nice.
• Easy weekend trips across the Baltics and to Scandinavia.

If you’re into the “quietly rich” strategy (high savings, low flex), Lithuania is tailor‑made.

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How do these 5 “underrated” countries compare on savings vs big-name hubs?

Let’s put rough numbers side by side so this doesn’t stay abstract.

Note: Savings are averages from CodeCapitals user submissions, not theoretical models. Some locations (⚠️) have limited data, but all five spotlight countries show strong, consistent patterns.

Country-Level Savings Comparison

Rank	Country	Avg Yearly Savings (approx)	Notes
#1	Serbia	€21,833	Non‑EU, booming remote dev base
#2	Romania	€32,142	Strong outsourcing & product mix
#5	Finland	€42,154	Nordic WLB + high net savings
#6	Bulgaria	€20,470	Classic low‑tax, low‑cost geo‑arbitrage
#7	Lithuania	€38,820	Fast‑rising Baltic tech hub

For comparison, in our broader rankings you see:

• London devs: ~€48k/year savings but with UK legal/tax complexity and insane rents.
• Many Western EU cities (e.g. Brussels, Hamburg) sitting in the €15k–€30k savings band, often with high stress and rigid corp cultures.

For the full map, check:
Best Countries for Tech Workers in 2024: Complete European Rankings and
Top 20 European Cities for Software Engineers: 2024 Rankings

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How do city-level “hidden gems” like Belgrade and Bucharest stack up?

A lot of the opportunity is city‑centric, not just country‑level. Here’s a snapshot of a few emerging tech markets in Europe vs more established ones:

City Snapshot: Savings & Data Quality

City	Country	Submissions	Data Quality	Notes
Belgrade	Serbia	22	Good	Strong remote scene, #1 country savings
Bucharest	Romania	12	⚠️ Limited	Early but very promising
Helsinki	Finland	8	⚠️ Limited	High savings, Nordic WLB
Sofia	Bulgaria	10	⚠️ Limited	Classic LCLT hub, strong for remote
London	UK	39	Strong	High savings but very high stress/cost
Berlin	Germany	54	Strong	Solid but increasingly mid‑tier on net savings
Warsaw	Poland	25	Good	Top‑tier geo‑arbitrage city in our data

Data caveats:

• Belgrade, Warsaw, London, Berlin have robust samples – we can be confident in the general positioning.
• Bucharest, Helsinki, Sofia: sample size <20 → use this as “early signal”, then cross‑check with local salary reports and job boards.

If you want city‑level nuance (neighbourhoods, commutes, etc.), browse:

• Best Tech Companies by City in Europe (2024)
• Top-Ranked Cities for Software Engineers in Europe 2026: Our Composite Analysis

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What’s the optimal strategy to use these underrated countries as a developer?

Here’s the blunt version: your location is a financial lever. These “underrated countries software engineers Europe” offers are basically multiplier hacks for your savings rate and career optionality.

1. Combine remote work with low-cost bases

The highest ROI pattern I see in coaching clients:

1. Get into a high‑paying remote‑friendly company (US or Western EU HQ, €100k–€160k+ potential).
2. Base yourself in a low‑to‑mid cost country like Serbia, Romania, Bulgaria, Lithuania, or Poland.
3. Aggressively save/invest 40–60% of net income.

This is exactly what I write about here:
High-Paying Remote is the new FAANG: Why Most Software Engineers Will Want Remote Careers

2. Use “emerging” hubs for career acceleration

In emerging tech markets in Europe, you often get:

• Faster promotions (fewer senior engineers per project).
• Broader scope (you’re not dev #723 in a London office).
• More chances to lead, architect, and ship visible features.

Do 3–5 years in Bucharest, Belgrade, Vilnius, Sofia, and you might exit with:

• Senior/Lead title
• Real ownership experience
• A savings cushion 2–3x what you’d have in Paris or Barcelona on the same nominal salary.

3. Plan your locations like a portfolio

Stop “just moving wherever sounds cool.” Instead:

• Early career (0–3 years): Go where you can learn fastest + get into good companies. Berlin, Amsterdam, London, big hubs.
• Mid career (3–10 years): Optimize for savings, autonomy, low stress. That’s where Serbia/Romania/Bulgaria/Lithuania/Finland shine.
• Late career / FIRE stage: Combine low‑cost bases + part‑time or high‑margin consulting.

I break this framework down in more detail here:
Location Planning for Corporate Careers and Financial Independence

4. Don’t ignore taxes and legal setups

Countries like Bulgaria, Serbia, Romania and Lithuania can be tax optimization heaven if you:

• Use self‑employed or small company regimes where appropriate.
• Avoid creating a tax residency mess (e.g. multiple countries claiming you).
• Align visa/residency status with where you’re really living & working.

If you’re aiming to actually keep your money, read:
Tax Optimization for Software Engineers in Europe: Keep More of Your Salary in 2026

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Actionable next steps: How do you test if one of these countries is right for you?

1. Quantify your own numbers:

   • Use CodeCapitals to plug in:
     • Target salary
     • Country/city
     • Taxes & estimated living costs
   • Compare Berlin vs Belgrade vs Bucharest vs Helsinki vs Vilnius with your actual situation.

2. Align with your career stage:

   • Junior? Probably don’t hide in a tiny market yet – you need brand & mentorship.
   • Mid/senior? These “hidden gem countries for developers” are perfect for you.

3. Short test trips (1–3 months):

   • Use Airbnb / short‑term rentals in Belgrade, Bucharest, Vilnius or Sofia.
   • Work remotely, test infrastructure + vibe + coworking.
   • Decide if winters, language, and culture feel sustainable.

4. Target the right employers:

   • Filter for: remote‑first companies, or Western companies with local offices.
   • Use this guide for sourcing:
     Best Platforms and Websites for Finding High-Paying Remote Tech Jobs (€100k+)

5. Make a 3–5 year plan:

   • Where will you live?
   • What savings rate are you targeting (e.g. 40–50%)?
   • When do you want FIRE or semi‑FIRE?
   • Which locations and roles get you there fastest?

For a full financial independence blueprint:
How to Reach FIRE as a Software Engineer in Europe: Complete Blueprint

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Frequently Asked Questions

Are these underrated countries really better than Germany or France for software engineers?

“Better” depends on your objective. If you optimise for net yearly savings, our data suggests yes, often they are: Romania at €32,142, Finland at €42,154, and Lithuania at €38,820 in average savings typically beat what a mid/senior dev in Berlin or Paris keeps after high rent and taxes. If you optimise for brand prestige and office names, Germany and France still win. The smart strategy is often to build your CV in big hubs, then harvest savings in cheaper high‑leverage markets like Serbia, Bulgaria, or Romania.

Can junior developers start their career in these hidden gem countries?

They can, but it’s trickier. Junior roles in these markets often pay €15k–€30k gross, and competition for good mentorship environments is higher because there are fewer large product companies. If you’re early in your career, I’d prioritise learning speed + company quality over immediate savings – think Berlin, Amsterdam, or a strong remote setup. Once you hit solid mid‑level, you can relocate to Serbia, Romania, Bulgaria or Lithuania and dramatically increase your savings rate (30–50% of net) without sacrificing role quality.

How much can a senior remote engineer actually save living in Serbia or Romania?

Let’s take a concrete scenario: a senior dev earning €120k gross fully remote from a US/EU company. In Berlin, you might net ~€65k–€70k after tax and typical costs, with maybe €15k–€25k in yearly savings if you’re disciplined. The same person based in Belgrade or Bucharest, with rent around €400–€700/month and lower taxes, can realistically save €40k–€70k/year, depending on lifestyle. That’s 2–3x faster capital accumulation for the exact same job.

How risky is it to move to a non‑EU country like Serbia as a developer?

Risk is manageable if you’re intentional. The main issues are visa/residency rules, currency risk, and political stability. For EU citizens, Serbia is relatively easy for medium‑term stays; for others, you’ll need to plan permits carefully. Currency risk means your local expenses are cheap now, but long‑term savings might be better held in EUR/USD investments. If you keep a mobile setup, 6–12 months of expenses, and remote‑friendly skills, you can always pivot to another base (e.g. Bulgaria, Romania, Poland) if things change.

How do Finland and Lithuania compare for lifestyle vs savings?

Both Finland and Lithuania offer high savings potential in our data – Finland at €42,154/year, Lithuania at €38,820/year – but the flavour is different. Finland gives you Nordic social security, top‑tier public services, and excellent WLB, at the cost of higher nominal taxes and more brutal winters. Lithuania is more of a fast‑rising Baltic hub: slightly rougher edges, lower costs, and very strong upside for remote workers or fintech‑oriented devs, with a lighter state apparatus. If you want maximum stability + benefits, lean Finland; if you want lean geo‑arbitrage with EU membership, Lithuania is compelling.

What’s the best way to reduce layoff risk while using these emerging tech markets?

The best defence is portable skills + remote leverage, not clinging to a single local employer. Focus on stacks and roles that are globally in demand (backend, infra, data, cloud, security), build a profile that’s attractive to US/UK/German remote‑first companies, and live in low‑cost, flexible bases like Serbia, Romania, Bulgaria, or Lithuania. That way, even if you’re laid off, your burn rate stays low and you have months (or years) of runway. I unpack this in more detail here:
2025 Survival Guide for Software Engineers: AI, Layoffs, and New Opportunities

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If you take one thing away from this: stop defaulting to Berlin and London because everyone else does. The real leverage in 2026+ is combining top‑tier remote roles with these underrated countries for software engineers in Europe – that’s how you get rich and stay sane.