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Neither. legal and compliance. If you hire someone in a new country you now have to comply with that country's labor and tax codes, a lot of times that means setting up a new legal entity in that jurisdiction. This can be really difficult/impractical for smaller companies.

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IT engineers in Poland willing to work for companies abroad, opened small businesses and applied for an European tax number.

We work as contractors - not employees - so no regional employment laws apply and we're just issuing invoices for services rendered.

I think that's a false myth, there are now EOR like Deel and Remote.com that make this super easy today.

There's also the "false contractors" route, i.e. hiring remote contractors but treating them like employees. Which is also a quite common setup among early stage startups with a fully distributed DNA.

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