Basics
Employees and Contractors: What is the Difference?
Contractors A contractor refers to individuals who are registered as freelancers or businesses in their home countries. We won't register them as employees in Companio Work, and they need to send an invoice each month for their services. 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 contractFew readersWhat Does It Mean to Be a Digital Nomad or Location-Independent Employee?
A digital nomad or location-independent employee is someone who doesn't have a fixed tax residence in any specific country. However, it's essential to understand the distinction between being a digital nomad and having no tax residency anywhere. A digital nomad is someone who works remotely while traveling, but they may still be liable for taxes based on their tax residency status. Conversely, individuals with no tax residency anywhere are not obligated to pay taxes in any specific cFew readers
Hiring
What Should I Do Before Hiring Employees or Contractors?
Before making any hiring decisions, it's important to take the time to evaluate your options and choose the approach that best suits your company's needs. Consider factors such as the type of employment (professionals, freelancers, or employees), their geographical location (Eg. digital nomads (/en/article/how-do-i-hire-people-with-geographiFew readersWhat Should I Consider When Hiring Employees?
When you hire employees for your company, there are a few important things to remember. Firstly, you will be responsible for paying full taxes on the employee's salary, which includes social benefits like medical care, unemployment benefits, and pension plans. This is beneficial as it ensures regular social security and pension fund contributions. Secondly, you must also cover the employee's salary, corporation, and income tax. Hiring international employees may seem complex, but iFew readersWhat Should I Consider When Hiring Professionals or Freelancers?
If your employees are professionals or freelancers in their countries of residence, it can be a good option for your business. In this case, they will issue invoices for their services rather than receive a salary. You can declare these invoices as expenses, making the money tax-free. Additionally, these professionals will contribute to their social security and pension in their respective countries.Few readersHow Do I Hire Employees & Contractors for My Company?
Are you thinking about hiring employees? That's great news for your growing business! We know that hiring employees for an international business can be confusing. Don't worry. We're here to help! We've gathered the most common questions and answers to guide you through the process. What should I consider when hiring professionals or freelancers? If your employees are professionals or freelancers in their countries of residence, it can be a good option for your business. In this case,Few readersHow Do I Hire People With Geographical Independence or Digital Nomads?
Their situation is unique if your employees, such as digital nomads, are geographically independent without tax residence. In this case, your company would pay them a contractor fee. However, traveling or becoming a "digital nomad" will not modify their tax residence or prevent them from having to comply with the authorities of their country of residence. Digital nomads must consult with a local tax advisor to ensure they have no obligations in their countries of origin or residenFew readers
Salaries
How Do Salaries and Dividends Work for an Estonian Resident?
This article is about how salaries and dividends function for people who live in Estonia, not for those who have e-Residency. If you are thinking about living in Estonia and becoming a resident, keep reading. What are the tax implications for dividends received by Estonian residents? Estonian residents who receive dividends do not need to pay personal taxes on those dividends. The company paying the dividends is subject to corporate tax (20% of the gross amount), but the individuaSome readersIf I'm a Board Member or Shareholder, How Do I Pay Myself?
Here are your available options: Dividend Distribution: You can choose to distribute dividends, typically done once a year after the annual report, provided there are profits available for distribution. This option assumes you can distribute enough dividends to cover your annual expenses. Employment through Companio Work: Consider becoming an employee of your Estonian company, even if you don't reside or are a tax resident in Estonia. With Companio Work, you can enjoy a seamless hiSome readers