Expanding your team beyond borders can feel empowering — until you realize that compensating international team members is often a minefield of legal, tax, and banking requirements. The moment you move from a single-country payroll to international compensation, you’re faced with compliance hurdles, registration requirements, and a confusing array of documents.
But not everywhere is a red tape nightmare.
Some countries offer simpler, more flexible frameworks for engaging international professionals whether as employees or independent contractors. If you're just starting to build a global team, here are five countries where compensating international talent is relatively smooth.
1. Estonia. A Digital Gateway to Europe

Estonia is a leader in digital-first governance, and its e-Residency program has made it easier than ever to run a remote EU-based company. With this program, founders can access EU banking, issue invoices, and sign documents online — all without setting foot in Estonia.
Why it’s easy:
- No physical presence required to open or manage a business
- Simple digital onboarding of international contractors
- Government services and business setup fully accessible in English
💡 Ideal for tech companies working with EU-based freelancers or building a remote European presence.
2. Georgia. Low Tax, Low Stress

Georgia has become an appealing hub for remote-friendly companies thanks to its simple business setup, low taxes, and independent financial system. While not part of the EU, it offers more flexibility in how international teams are structured and compensated.
Why it’s easy:
- Company registration typically takes 2–5 working days online; slightly longer for foreign founders
- No requirement to appoint local directors
- Freelancers can invoice and be paid under simple service contracts
- Flat tax rates and simplified regimes available for individual entrepreneurs and small businesses
💡 Ideal for startups exploring international hiring before opening a legal entity.
3. Portugal. Freelancer-Friendly and Digitally Ready

Portugal has long been a favorite for digital nomads — but it’s also a practical choice for companies working with EU-based freelancers. With flexible self-employment rules and strong digital tools, it’s easy for independent professionals to work with international clients.
Why it’s easy:
- Freelancers can register under the Recibos Verdes system and invoice clients abroad
- Electronic invoicing and digital signatures are widely accepted
- The Non-Habitual Resident (NHR) program offers tax benefits for qualifying professionals (note: updated rules apply from 2024)
💡 Ideal for companies building long-term contractor relationships within the EU.
4. Serbia. High Availability of Talent, Low Regulatory Pressure

Serbia is home to a growing tech workforce and a large community of remote professionals. While it's outside the EU, it offers more flexible options for international companies looking to engage local talent — especially as independent contractors.
Why it’s easy:
- No need to open a local company to work with Serbian freelancers
- Contractor agreements are simple and legally recognized
- Freelancers often register as sole proprietors under the "paušalni" regime, which offers a fixed monthly tax model
- Lower transfer fees available through fintech platforms
💡 Ideal for companies seeking skilled developers, designers, or support talent without opening a legal entity.
5. United Arab Emirates (UAE). Tax-Free Zones & Flexible Contractor Models

The UAE has positioned itself as one of the most business-friendly environments globally. Through its numerous Free Economic Zones, international companies and professionals can set up operations with relatively low bureaucracy and full foreign ownership.
Why it’s easy:
- No personal income tax for individuals
- Freelancers can obtain permits through Free Zones and legally invoice clients globally
- Many Free Zones offer fast business setup with minimal local presence
- Corporate tax introduced in 2023 applies to businesses with net profits over AED 375,000; most freelancers are below this threshold and thus remain unaffected
💡 Ideal for scale-ups working with remote consultants or regional reps across the MENA region.
A Quick Word on Compliance
Important note: Just because it’s easier in these countries doesn’t mean there are no compliance requirements. You still need to:
- Properly classify contractors vs. employees
- Have valid service agreements in place
- Stay aware of local tax thresholds and reporting obligations
That’s why platforms like uDelta exist — to help simplify compensation distribution without becoming a licensed financial institution. We coordinate compensation logistics and provide the documents you need without the challenges of setting up local branches or chasing compliance paperwork.
Final Thoughts: Pay Your Team the Smart Way
Paying international team members doesn’t have to mean swimming through bureaucracy. With the right partner and the right location, you can start to scale without legal surprises.
Ready to simplify international compensation management ? Let’s talk: mail@udelta.io