Contractors: What Is the Difference with Employees?

Contractors

Contractors are those who are (or can be) registered as freelancers or businesses in their respective countries and, as such, can invoice your business. They need to send an invoice each month for their services, and we advise you to check that they are indeed registered as freelancers or solopreneurs in their home countries.

Employees

An employee is someone who is formally employed by your company and receives regular monthly salaries. They have employment contracts and are subject to various payroll taxes and contributions in their respective countries of residence.

You can be an employee within Companio Work, regardless of your location, even if you reside in Spain or any other country. To learn more about how Companio Work can assist you or your employees, visit this link.

Updated on: 15/07/2025