How to hire and pay contractors in Greece

Greece has one of the highest self-employment rates in the EU, with over 30% of its workforce working independently, as freelancers or independent contractors. Key industries with a strong presence of freelance talent include technology, digital media, finance, tourism, and translation. 

Hiring Greece contractors provides international companies with access to experienced, low-cost labor, but complying with local regulations regarding worker classification, pay, and taxes is crucial. 

This guide explains how to legally hire contractors in Greece and pay them efficiently, whether you’re based in the EU or the US.

How to hire Greece contractors

Hiring independent contractors in Greece can be straightforward if you understand how to classify them correctly, follow local laws, and set up a proper agreement. Here’s how to do it right:

1. Understand worker classification

Even if you employ a worker as an independent contractor in Greece, the law can consider them an employee if they work primarily or solely for you for 9 consecutive months, particularly in situations such as pay-per-task contracts.

Criteria	Greece Contractors	Employees
Work Schedule	Set their hours and work independently	Fixed hours set at 45 to 48 hours per week
Payment Structure	Paid per project or milestone	Receive a regular salary
Tax Withholding	Responsible for their taxes	You must withhold and pay taxes
Entitlements	No benefits or severance	Entitled to PTO, sick leave, pension, etc.

2. Understand Greece’s independent contractor laws

You can hire contractors in Greece following individual contractual agreements. However, the courts glance beyond what is written in the contract. It is actually how the work is performed that matters. 

They are bound to be viewed as an employee (and not Greece contractor) if:

• They regularly perform work in one location or over a lengthy period
• They perform work exclusively or primarily for one customer
• They perform the work and cannot subcontract it
• They take directions from the employer and do not bear business risk

3. Find independent contractors in Greece

You can hire contractors in Greece using a mix of global platforms and local resources:

• Use global freelance platforms like Upwork, Toptal, PeoplePerHour, Freelancer.com, and Fiverr to find Greek talent.
• Search LinkedIn and Malt for professional freelancers across industries.
• Find designers and creatives on platforms like Behance and Dribbble.
• Check local Greek job boards such as Kariera.gr, Jobfind.gr, and Skywalker.gr for freelance listings.
• Use referrals from local communities, Slack groups, and digital nomad networks in Greece.
• Consider staffing agencies if hiring multiple contractors.

4. Hire contractors in Greece from the US

US-based companies can legally hire contractors in Greece without opening an entity in Greece, but they must follow a few key steps:

• Draft a locally compliant contract in Greek and/or English.
• Ensure tax independence by having contractors file their income taxes in Greece.
• Request tax ID or tax number for invoicing, if applicable.
• Utilize international contractor payment platforms or contractor management platforms, such as Payoneer WFM, to avoid manual banking issues.

You do not need to withhold US taxes for foreign independent contractors. However, to remain compliant, collect Form W-8BEN from your Greece contractors. This certifies their foreign status for IRS purposes.

How to pay contractors in Greece

You can pay contractors in Greece efficiently and legally after meeting the following tax, currency, and record-keeping standards:

1. Determine how to pay 

Choose a payment method that suits both your business and your contractor. Common methods include:

• Bank Wire Transfers (SWIFT): Traditional method for international payments; secure but often slow and costly.
• SEPA Transfers: If you have access to a European bank account, Single Euro Payments Area (SEPA) transfers offer fast and low-cost EUR transactions within the EU.
• Digital Wallet Transfers: Allows you to pay using stored balances or linked bank accounts.
• Modern Solutions: Payoneer Workforce Management (WFM) allows you to pay multiple contractors at once, automate payments, and stay compliant. 

2. Ensure your Greece contractors have the right tax information

Protect your business from liability and ensure accurate tax documentation while paying contractors. Before issuing any payments:

• Request their Greek Tax Identification Number (AFM) and VAT ID (if applicable).
• If you’re a U.S.-based business, collect IRS Form W-8BEN to confirm their non-U.S. tax status.
• Require official invoices with legal and payment details for every transaction.

3. Pay in Euros or US Dollars

Most Greece contractors prefer to be paid in Euros (EUR), as it’s the local currency and avoids conversion fees. However, some may accept U.S. Dollars (USD) if they operate internationally.

You may incur the conversion fee based on the preferred payment method. As of mid-2025, the currency conversion rate is 1 EUR = 1.15017 USD.

4. Maintain compliant records

Always keep well-organized documentation to support your payments made to Greece contractors. This includes:

• Signed service contracts
• Copies of all invoices
• Proof of payments made (bank confirmations or transaction receipts)
• Collected tax forms (e.g., W-8BEN)
• Email or message threads confirming project terms and scope

Maintaining these records helps protect your business during audits and clarifies the nature of the relationship in case of legal scrutiny.

Why Payoneer WFM is the easiest way to hire contractors in Greece

Payoneer’s Workforce Management (WFM) is designed for distributed teams, and hiring Greece contractors is effortless:

• Local compliance assistance: Prevents misclassification risks with templated employment contracts and KYC verification.
• Collection of tax forms: Streamlines W-8BEN and other necessary forms.
• Bulk payouts: Pay one or several contractors with just a few clicks.
• Onboarding of contractors: Manages documentation, verification, and e-signing of contracts.
• Local currency payment: Greece contractors receive EUR payments directly into their accounts.

If you’re building a distributed team across Europe, Payoneer WFM streamlines tax, legal, and payment compliance within a single dashboard.  

FAQs about Greece contractors

Do I need to hire a contractor in Greece through a local entity?

No. You can lawfully employ Greece contractors without establishing an office or entity in Greece if the relationship passes the independent contracting test.

Do I withhold taxes for Greece contractors?

No, however, you should obtain Form W-8BEN for IRS compliance and ensure that the contractor is taxed in Greece. You can utilize the Payoneer WFM solution to pay contractors in Greece with proper statutory compliance.

What’s the VAT scenario in Greece?

Greek freelancers can invoice VAT (24%) if they’re VAT-registered. If you’re a US firm, the reverse-charge mechanism will be applicable, depending on the services provided.

Can a Greece contractor subsequently claim employment rights?

Yes, if the arrangement seems more akin to employment (e.g., fixed times, control, exclusive work), they can seek legal reclassification. Additionally, the courts look beyond the contract writing. To mitigate misclassification risks, you can utilize the Payoneer WFM solution to hire, compensate, and manage multiple contractors simultaneously efficiently.