Hire Contractors in Greece

Greece has the highest rate of self-employment of any European country. About 37.12% of the workforce is self-employed. Moreover, most self-employed people, at 83.7%, have no employees, fostering a remarkable culture of hiring independent contractors in Greece. 

If you want to expand operations in Greece or tap into its talented workforce, you should take a strategic approach. Although the country has skilled professionals in many sectors, labor laws, payroll management, and tax regulations can be complicated. 

You can hire contractors in Greece for flexibility and cost-effectiveness; however, you must comply with local laws to avoid risks such as misclassification penalties.

With an Agent of Record in Greece like Skuad, you can hire, pay, and manage contractors without hassle while ensuring full legal compliance. This article explores the process of hiring contractors in Greece, the associated costs, and how Skuad simplifies contractor management, helping you focus on growth without the administrative complexities.

How to Hire Contractors in Greece

When you decide to work with independent contractors in Greece, setting up your process for compliance, efficiency, and clarity is important. Here’s how you can approach it:

1. Understand the local legal framework:

• Classify contractors correctly:
  
  • Make sure that the positions you are hiring for do not inadvertently create an employment relationship. 
  • This will be done by defining project-based or freelance terms to differentiate the work from a permanent position.

• Seek expert help
  
  • You can switch to contractor management software to onboard, track, record, and pay contractors in compliance with local laws. 

2. Develop a recruitment strategy:

• Local sourcing:
  
  • You may use local job boards, professional networks, and recruitment agencies familiar with the Greek market. 
  • This way, you can find candidates already accustomed to the local work culture and legal environment.

• Clear contractual terms:
  
  • Prepare clear agreements that describe the scope of work, duration, payment terms, and termination clauses. 
  • Such clear agreements can minimize potential disputes and regulatory issues in the future.

3. Streamline onboarding and administration:

• Set up administrative systems:
  
  • Ensure you have systems to manage documentation, compliance, and ongoing communication. 
  • This might involve the utilization of electronic contract management systems and deliverable tracking.

• Communication:
  
  • Maintain a communication structure with your contractors that manages expectations, monitors progress, and quickly addresses issues.

Hiring contractors through Skuad AOR

Our Agent of Record (AOR) solution in Greece can help you overcome the complication of hiring contractors by outsourcing the compliance burden. This is how we can assist you:

• Skuad AOR uses local legal and HR experts to ensure proper contract engagements. It handles the most minute details in drafting, local classifications, and regulatory filings.
• With Skuad AOR, you enjoy a streamlined onboarding process compliant with Greece's legal system. We handle all the paperwork and administrative tasks so you can focus on what matters most—your core business.
• You minimize the possibilities of misclassifying your employee, penalties resulting from noncompliance, or other legal trouble by working through an Agency of Record.

How to find contractors in Greece

Here are the most effective ways to find contractors in Greece: 

• Define the role, skills required, and engagement type (short-term or long-term).
• You can use sites like Facebook, LinkedIn, and Indeed or freelance platforms like Guru, Upwork, and Gigexchange.
• Leverage local agencies for pre-vetted contractor recommendations.
• Simplify hiring, payroll, and compliance by partnering with Skuad to manage contractors seamlessly.

How to pay contractors in Greece

Here's what you need to know about contractor payments and contractor tax in Greece:

• Pay your contractors using local bank transfers. This will simplify the process and reduce the fees associated with international transfers.
• Since the local currency is the Euro (€), you should plan for possible exchange rate fluctuations if you operate from a different currency zone. 
• AOR platforms can manage currency conversions efficiently and help maintain consistent payment amounts.
• Greece contractors are responsible for filing and paying VAT. However, you should ensure that your local supplier invoices comply with local specifications. The service rendered should be properly documented, and the applicable VAT and other deductions should be stated.

Whether you manage your payments in-house or outsource them through a service like Skuad AOR, an integrated payroll system automatically calculates VAT, social security contributions, and other deductions, reducing errors and administrative overhead.

Hiring Contractors Directly vs Hiring Contractors via Skuad

Here’s a comprehensive comparison between hiring a contractor directly versus hiring a contractor through Skuad. We have differentiated it against key factors such as risk mitigation, including misclassification, cost, speed of processing, and other operational benefits:

Cost of Hiring Contractors in Greece

The cost of hiring contractors in Greece comprises contractor fees, payroll processing, tax and social security contributions, compliance and legal expenses, and currency exchange fees. Here is a detailed breakdown of each:

How to Convert a Contractor into an Employee in Greece

You can reward your loyal independent contractors in Greece by converting them into full-time employees. It enables them to enjoy statutory employment rights and benefits. Here’s a step-by-step guide to help you through the process:

• Determine whether conversion makes sense based on the contractor's tasks, level of integration, and long-term business needs.
• Familiarize yourself with Greek labor laws regarding contracts, working hours, and benefits. Consult experts to ensure compliance.
• Include job responsibilities, salary, benefits, working hours, tax deductions, and termination terms while drafting a compliant employment contract.
• Talk about the change-over with the service provider, share concerns, and negotiate new deals if required.
• Update salary for tax-deducted salary and social security, and re-register the employment status with various authorities.
• Agree to a start date and provide requisite training before inducting into the company role as an employee.

Alternatively, you can choose an Employer of Record (EOR) solution to get started.

Challenges of Hiring Contractors in Greece

Hiring contractors in Greece can be a very flexible way to access the right skills for the job, but it is not without its challenges. Some of the major ones are:

1) Misclassification of Contractors in Greece

You must deal with a complex legal framework when hiring contractors in Greece: 

• Employee vs. Contractor Classification:
  • If independent contractors in Greece get fixed hours, use your equipment, or are highly immersed in your core business activities, Greek authorities can classify them again as employees. 
  • You should properly evaluate whether you have imposed a working condition, typically for full-time employees at your contractors' end. 
  • You may end up with back payments for the social security collected and benefits given, and you may even attract a fine. 

• Tax and Social Security Commitments:
  • You should ensure that your Greece contractor agreements comply with local tax laws, including requirements for VAT registration and high social security contributions via EFKA. 
  • Proper record-keeping and structuring of your contracts are critical steps to avoid audits or penalties.

2) Greece payroll requirements

Managing contractors in Greece is more challenging than you can imagine. Coupled with the local tax system and currency issues, administrative demands for Greece payroll require you to be extra cautious:

• Contractor salaries in Greece will be taxed, and complications may arise from currency exchanges and local banking practices. 
• To meet local and international requirements, you must invest time and resources in keeping your documentation, including invoices, tax forms, and payment records, up to date. 

3) Hiring issues

Finding the appropriate contractor in Greece comes with challenges:

• In specialized fields, you may see very few qualified independent contractors in Greece. Many technical professionals may prefer the security of full-time employment, leaving you to dive into a much smaller, more competitive, or constrained market for independent talent.
• If you and your team usually communicate in a different language, you may struggle to hire contractors in Greece who may mainly speak Greek. 
• You should prepare for a more rigorous process in verifying credentials, negotiating contract terms, and aligning expectations for contractor outsourcing in Greece. 

So, you must adapt to unique local norms and regulations when hiring independent contractors in Greece. Alternatively, engaging an Agent of Record in Greece can mitigate challenges around contractor outsourcing.

Hire Contractors in Greece with Skuad

Skuad is a leading AOR and EOR solution provider for seamless HR compliance. Its global employment platform allows you to hire, onboard, and pay contractors easily while ensuring compliance with Greece's labor regulations.

Operating in more than 160 countries, Skuad provides a scalable and cost-effective way to access talent across borders while handling payroll, tax, and legal compliance on your behalf. 

Our EOR solution comes in handy when converting independent contractors to employees. 

‍Partner with Skuad today to build a truly global workforce – without the administrative and legal headaches.

FAQs

How do I hire a foreign contractor?

To hire a foreign contractor in Greece, you may verify legal compliance for remote work, draft a clear contract, and set up secure payment methods. Using an EOR service like Skuad simplifies compliance, payments, and management.

Is Greece good for freelancers?

Yes, Greece is a promising destination for freelancers. Under its digital nomad visa, non-EU workers can stay and work in Greece for up to one year. 

Is freelancing legal in Greece?

Yes, freelancing is lawful in Greece, and people can engage in it upon registration as self-employed. However, employers must ensure that the workers have their Tax Identification Number (AFM) and Social Security Number (AMKA) to work as freelancers legally in this country.

Is it expensive to hire a contractor?

Hiring contractors in Greece is more economical than hiring in European countries. However, costs depend on the contractor's specialty, industry, or role. An hour can cost between €15 and €70, with IT and software specialists charging more. If international businesses participate in contracting, currency fluctuations, and transfer costs also add costs. Partnering with an AOR service like Skuad helps streamline these costs and ensures compliance. One can also hire contingent contractors in Greece for shorter periods.

How much does employment cost in Greece?

Most sources report employment costs in Greece to be about 22.9% of payroll costs. This is the total employer contribution to statutory social benefits. There are additional compliance costs and costs associated with employing someone in Greece.