It’s hard to figure out how to hire and pay international contractors legally, without the right help. You’d need to understand diverse tax laws and labor regulations in each country you hire from.

It’s a time-consuming task that diverts attention from more strategic priorities. Worse, errors or omissions could lead to non-compliance, resulting in costly legal consequences.

But the truth is, hiring international contractors offers numerous advantages for businesses looking to expand and improve operational efficiency. This is especially true because you can onboard contractors fast, without the need to own a local entity.

To make the most of the flexibility and scalability of global contractors, it’s important to streamline the hiring and management process. That’s where Deel comes in. Our robust and centralized platform provides an elevated experience for both businesses and contractors, whether you’re a small business or a global franchise.

This guide will explore the benefits of partnering with Deel when hiring and paying international contractors.

What is an international contractor?

An international contractor is an independent worker based in a different country from the company they work for. While the defining characteristics of a contractor can vary depending on their country of tax residency, they generally:

Work on a short-term or project basis
Have autonomy over how and where they work
Receive payment on a project or task basis
Manage their own taxes and benefits
Set their own schedule and work methods
Can work with multiple clients at once

See also: When to Transition From Contractors to Full-Time Employees

What are the benefits of hiring international contractors?

Engaging international independent contractors offers significant advantages, particularly in:

Access to global top talent: Businesses can hire the best professionals worldwide, unrestricted by location
Cost savings: Independent contractors only get paid for work. There are no costs for benefits, payroll taxes, or long-term salaries
Scalability: Companies can adjust their workforce quickly by hiring contractors as needed, without the constraints of permanent staff
Specialized expertise: Contractors bring niche skills that may not be available in-house, delivering high-quality results
Faster hiring: With fewer formalities than full-time employees, contractors can start work quickly. This makes them ideal for urgent or short-term projects
Speedy market testing: Hiring international independent contractors lets companies test new markets without investing significant resources, reducing both financial and operational risk

See also: US Company Guide to Hiring Foreign Independent Contractors