The correct rate is that which the market will bear. I'm a U.S. citizen living in the Philippines but I charge the same rate as I did when I lived in the U.S.

The correct rate is that which the market will bear. I'm a U.S. citizen living in the Philippines but I charge the same rate as I did when I lived in the U.S. There is no reason that I should be charging less because I live in the Philippines. However, the market rate is higher on the world market than it is in the local market of my location in the Philippines. If I were selling to a local mom and pop shop in the city I'm living in, I couldn't charge much. If I were to sell to a major corporation with an international presence but based in the Philippines, then I could probably charge more than I charge my typical client base. So, the answer to your question depends on your target market. Different markets can bear different rates. Much more important is the overall value you offer your clients, the demand for your services (of course, great value will likely lead to more clients) and your ability to sell. A developer charging much higher rates than most developers might still provide a better value. The more clients you have demanding your services, the more scarce your time becomes, and that leads to your time being worth more. But the developer whom makes the most money is the one whom can sell and take care of the client. The tech stuff is easy, running a business and taking care of the clients is the hard part. I do find there are some issues that might get in the way of a developer from the Philippines making as much money as I do as a U.S. citizen working from the same country. Overall the Philippines in many ways has the feel of the U.S. from several decades ago. All of machinery which makes life in the U.S. run so smoothly doesn't run quite as well in developing countries. Businesses here leave much to be desired in areas such as customer service, quality control, technical expertise, etc. The Philippines even has a term called "Filipino time" which means "30 minutes late." When you grow up in a society like this then it might be difficult to anticipate and meet the expectations of clients from developed nations whom might expect more than you are accustomed to giving. Also, if you are dealing with a world economy still very much dominated by the English language, you should be able to speak English well. Time zone differences might be another issue if you are expected to be available at certain times to certain regions. Some of these factors might lead you to slightly lowering your preferred rates, and you can certainly charge less and still have more disposable income than a developer in a much more expensive area, but the cream of your industry gets cream rates.