What is International contractor?

International contractor

An international contractor is a self-employed professional who provides services to a company in another country and invoices for them, with no employment relationship. They handle their own taxes, contributions and time off, and in exchange usually command higher rates and more flexibility than an equivalent employee.

It is the fastest route into the international remote market, because the company needs no structure in your country. It is also the most exposed: no severance, no paid sick leave, and the admin burden on your side. The difference between a good contractor agreement and a bad one lies in the notice, IP and liability clauses.

Also called: independent contractor, international freelancer, 1099 contractor

Related terms

Employer of RecordAn Employer of Record is a company that legally employs a worker in their own country on behalf of another, foreign company. It takes on payroll, social contributions and local labour compliance, while day-to-day work is directed by the client company. It allows hiring in a country without opening a subsidiary there.
Cross-border invoicingCross-border invoicing is issuing invoices to clients located in another country, applying whichever indirect tax rules fit depending on where the client sits and whether they are a business or a consumer. It determines whether you charge tax, whether the reverse charge applies, or whether the transaction is out of scope.
Worker misclassificationMisclassification is invoicing as an independent professional while working under employee-like conditions: imposed hours, company equipment, exclusivity and hierarchical dependence. It is a live risk in international remote hiring, because inspectors look at the facts on the ground rather than at what the contract says.