How US companies can tap into European tech talent utilising unique European legislation

EU Remote provides an alternative avenue for global companies to hire remote employees across Europe, without establishing entities, contracting an Employer of Record, or misclassifying their employees.
How US companies can hire European tech talent

The landscape of global business is rapidly evolving. With companies expanding beyond traditional borders, international hiring has shifted from being an added advantage to an operational necessity. US companies, in particular, have increasingly looked towards Europe, not merely as a market but as a hub of rich talent. However, while the intent to hire internationally has expanded, traditional methods have often proven challenging and, sometimes ultimately, restrictive.

The Historical Bottlenecks

Historically, for a US-based company to employ talent directly from Europe, it would typically follow one of four routes:

  1. Setting Up Local Entities: This involved establishing a formal legal presence or subsidiary in the desired European countries. While this ensured direct control, the process was often mired in bureaucratic red tape, significant costs, and lengthy timelines.
  2. Using Employers of Record (EoRs): As a more immediate solution, companies turned to EoRs, which would technically employ the talent on their behalf. However, this approach led to significantly higher hiring costs, jeopardising IP, and in several cases, non-compliance with local European regulations.
  3. Misclassifying employees as independent contractors: The leniency we’ve seen during the pandemic is over and companies adopting this approach are taking a huge risk, not just when it comes to potential penalties and fines. But reputation damage too as the increasing number of cases being discussed in the media.
  4. Restricting their hiring to the US: Due to the challenges faced by US companies as they try to scale their team into Europe. This may be the most risk-averse option, but one that costs them the ability to access impressive tech talent across Europe.


None of these paths was without its challenges, often deterring companies from optimizing their European hiring strategies.

European payroll and compliance software

EU Remote facilitates direct employment as a foreign employer.

  • Direct Hiring, Simplified: Companies can recruit remote workers from across 32 European countries, fostering a transparent and direct relationship without the overheads of a third-party hiring organisation such as an employer of record.
  • Eliminating Legal Complexities: By using a team of experts such as EU Remote, companies can outsource the daunting task of navigating varied European employment laws and regulations, while still maintaining employer status. By working with a team that will be responsible for managing compliance and ensuring companies adhere to local norms, the risk of legal pitfalls is significantly reduced.

The Broader Impact

The implications of such a service extend beyond simplifying the hiring process. For US companies:

  • Cost Efficiency: Direct hiring, minus the costs associated with local entity setups or EoRs, leads to significant savings.
  • Agility: With the ability to hire directly and quickly, companies can be more responsive to market needs, scaling teams as required.
  • Enhanced Employer-Employee Relations: Direct hiring fosters a closer relationship between companies and their European employees, enhancing communication and mutual trust.

In Conclusion

By utilising European legislation that permits companies to hire talent in Europe without establishing entities, US companies can truly unlock the potential of the European talent market, unhindered by traditional challenges.

For companies keen on understanding the nuances of international hiring and exploring new horizons, EU Remote’s unique approach could very well be the blueprint for the next phase of global business operations.