Working as a contractor for a foreign company: what to check first

Many remote roles at foreign companies hire people abroad as contractors, meaning service providers rather than employees. The offer usually comes in dollars or euros, and the number looks high once converted to your local currency. Before you accept, it's worth understanding what changes compared with a local job and what needs to be written in the contract.

This article is a starting point, not legal or tax advice. Tax rules and the requirements for opening a company change and depend on your country and situation: talk to an accountant before you decide.

Contractor, employee or employer of record

There are three common setups:

• Direct contractor agreement: you provide services to the foreign company, often through a company of your own, and send an invoice for each period.
• Contractor platform: the company uses a service that handles contracts and payments for contractors in several countries. You're still a service provider, but the contract and the invoice go through the platform.
• Employer of record (EOR): a company in your country hires you on behalf of the foreign company, and the relationship can then be one of employment, with the rights of a local job.

Ask which setup it is early on. It changes everything that follows.

What to read in the contract

A services agreement is usually shorter than an employment contract, but a few points deserve attention:

• Rate and currency: hourly, monthly or per project, and in which currency.
• Payment terms: how many days after the invoice the money arrives.
• Transfer costs: who pays the fees for the international transfer.
• Notice and termination: how much notice each side must give to end the agreement.
• Intellectual property: what you create for the company usually becomes theirs; check that the clause doesn't reach personal projects done on your own time.
• Exclusivity and non-compete: whether you can work with other clients and for how long you're restricted after leaving.
• **Hours and time zone:** how many overlapping hours the company expects.
• **Time off:** whether there are paid days off or whether every day without work is a day without billing.

If something isn't written down, ask and request that it be added. Agreements made only on a call are easy for both sides to forget.

The costs that belong in the math

As a contractor, you usually don't get the benefits of local employment, such as paid vacation, pension contributions or other mandatory benefits where you live. Costs the company would otherwise cover also become yours: taxes, accounting, health insurance, equipment and any exchange and transfer fees.

That's why comparing only the gross amount converted to your currency is misleading. A simple way to compare is to add up everything you'd receive in a year in a local job, benefits included, and set it next to what would be left as a contractor after taxes, accounting, health insurance and days without billing. Ask an accountant for the numbers in your case, because they vary with the type of company and tax regime.

How you get paid

Payment from abroad can arrive through a traditional bank, an international money transfer service or the contractor platform itself. Before the first payment, compare the exchange rate and fees of each option, and confirm with your accountant how the income should be recorded.

In the negotiation

Knowing your costs gives you a basis to negotiate. If the company proposes a monthly amount, you can explain that, as a contractor, you cover vacation, taxes and health insurance yourself, and ask for a rate that reflects that. You can also negotiate payment terms, who pays transfer fees and days off in the contract.

In G3 Apply, the copilot lets you choose the countries and regions for remote roles and filter by time zone, so your search starts with the roles you can actually take. The decision to accept an offer is still yours, and it's worth making it with the contract read and the math done.