How to Pay Global Contractors from Europe

If you run a business in Europe and work with contractors outside the EU, you’ve probably noticed something: paying within the eurozone is easy. SEPA transfers are fast, cheap, and widely understood. Paying outside it is a different story.

The moment your contractor is based in the Philippines, India, Nigeria, Morocco, Colombia, or anywhere beyond the SEPA zone, you’re back to the older, more expensive world of SWIFT bank wires — high flat fees, exchange rate margins buried in the conversion, and delivery times that can stretch to several days. And unlike SEPA, many of those costs may not be shown to you upfront.

This guide is for European businesses that want to understand their options for paying global contractors — what SEPA does and doesn’t cover, what the real cost of a bank wire is, what to look for in an international payment service, how to handle currency and compliance, and how to set up your first transfer. It’s practical and specific, because vague advice about “exploring your options” doesn’t help you pay anyone.

SEPA: what it covers and where it stops

The Single Euro Payments Area (SEPA) covers 36 countries — all EU member states plus Iceland, Liechtenstein, Norway, Switzerland, Andorra, Monaco, San Marino, the Vatican, and the United Kingdom. Within this zone, bank transfers in euros are fast (often same-day under SEPA Instant), low-cost, and standardised using IBAN and BIC codes.

If your contractor is based in Germany, the Netherlands, Portugal, or any other SEPA country and holds a euro account, a SEPA transfer is almost certainly your best option. Your bank can handle it, costs are minimal, and delivery is reliable.

But SEPA has a hard boundary. Contractors in the following regions are outside it entirely:

For contractors in any of these regions, you need a different solution. The standard fallback is a bank wire. It’s not always the best one.

The real cost of paying contractors by bank wire from Europe

European businesses default to SWIFT bank wires for international payments because it’s what their bank offers, what their accountant set up, and what feels like the ‘official’ route. But the cost is higher than most finance teams realise, and it’s deliberately obscured.

A typical SWIFT transfer from a European business bank account to a non-SEPA country involves three separate costs:

On a €2,000 contractor payment, these three layers could add up to €80–140 in total costs — 4 to 7% of the transfer value. And unlike SEPA transfers, you often don’t know the exact final cost until after you’ve confirmed the payment.

For businesses paying ten contractors a month, that’s a material budget line that doesn’t need to exist.

What to look for in an international payment service

If you’re moving away from bank wires for international contractor payments, the most important things to evaluate are:

• Upfront fee transparency. You should see the full cost — in euros (or your local currency) — and the exact amount your contractor will receive in their local currency before you confirm. If the platform shows you a fee but not the exchange rate margin, the true cost is hidden.
• Delivery speed. Bank wires generally take 2–5 business days to most non-SEPA destinations. Many specialist international payment services can deliver within minutes to a few hours for major corridors. For contractors on project timelines, this matters.
• Country and currency coverage. Check that the specific country your contractor is based in is supported — and that payment can be delivered to a local bank account or mobile wallet, not just to another international account.
• Regulatory standing. Any payment service you use for business payments should be a regulated entity. In the EU, look for authorisation as a Payment Institution or e-money institution under PSD2, with a valid licence in an EU country.
• Business-specific functionality. Some international payment platforms are built for consumers, not companies. Look for features like business account registration, transaction records you can export for accounting, and support for multiple recipients over time.
• No hidden minimums or subscriptions. Some platforms charge monthly fees regardless of how much you send. If your contractor payments are irregular or variable in volume, a per-transfer fee model is usually more cost-effective.

Currency, compliance, and what European businesses need to know

Which currency should you send in?

In most cases, you’ll send in EUR from your European business bank account, and your contractor receives in their local currency. The exchange rate and the converted amount should be shown to you upfront before you confirm. What your contractor receives depends on the total (fees included + exchange rate applied) at the time of the transfer — ask your platform to show this clearly.

Some contractors, particularly those in countries with volatile local currencies (such as Nigeria or Argentina), may prefer to receive in USD or EUR rather than local currency. Whether this is possible depends on the payment platform and the destination country. It’s worth asking your contractor which currency they’d prefer to receive before setting up the first payment.

Tax and compliance for EU businesses paying non-EU contractors

Tax treatment for payments to non-EU contractors is broadly consistent across EU member states, but specific rules vary by country. General principles most EU businesses apply:

• Withholding tax: Generally, for services performed entirely outside the EU by a non-EU contractor, most EU member states do not require withholding tax on the payment. However, if the contractor is performing services inside your country or has a taxable presence there, different rules may apply. Confirm with your local tax adviser.
• Invoice requirements: You should obtain a formal invoice or service agreement from every contractor you pay. This documents the nature of the service, the amount, and the basis for the payment — which you’ll need for your accounting records and any potential VAT treatment review.
• VAT on imported services: For B2B services received from outside the EU, the reverse charge mechanism typically applies under EU VAT rules. This means you account for VAT on the invoice value in your own VAT return, rather than paying it to the contractor. Confirm this applies to your specific situation with your accountant.
• Transaction records: Keep a full record of every international contractor payment — the EUR amount sent, the exchange rate, the fee, and the local currency amount received. Most international payment platforms generate an exportable transaction record per transfer.

EU AML and PEP checks

Regulated payment institutions operating in the EU are required to conduct AML (Anti-Money Laundering) and, in some cases, PEP (Politically Exposed Persons) screening on business customers and their transactions. When you open a business account with any regulated payment service, expect to provide business registration documents, proof of identity for ultimate beneficial owners, and information about the nature and purpose of your international payments. This is standard and required — not a sign that anything is wrong.

Key corridors: where European businesses most commonly pay contractors

Different EU countries have distinct contractor hiring patterns based on language, geography, and industry focus. Here’s an overview of the most common non-SEPA corridors for EU business payments:

This list covers the highest-frequency corridors, not an exhaustive one. The best international payment platforms for businesses support 100–170+ destination countries, so most global hiring patterns are covered.

How to pay a global contractor from Europe: step by step

The process is broadly the same regardless of which platform you use. Here’s what it looks like in practice with Remitly Business, which is now available across 23 EU/EEA countries:

1. Create a free Remitly Business account. Go to your country’s Remitly Business page (in the table below) and set up your account using your business email and company registration details.
2. Add your contractor as a recipient. You’ll need their full name, bank account number, and relevant routing codes for their country — for example, an IFSC code for India, a CLABE for Mexico, or a standard IBAN for Eastern European destinations that use them.
3. Enter the amount in EUR/local currency. Before you confirm anything, you’ll see the exact fee and the amount your contractor will receive in their local currency at the current exchange rate. This is your full cost — nothing is added afterwards.
4. Confirm and send. Most transfers arrive fast – not in days, but delivery times do depend on the destination country and delivery method.
5. Save the transaction record. Export or save the transfer confirmation for your accounting records. This contains the amount you want to send, the fee, the exchange rate applied, and the local currency amount received.

Remitly Business for Europe-based companies

Remitly Business launched across 23 EU/EEA countries on 13 July 2026. It’s designed specifically for the use case this article describes: an EU-based business that needs to pay contractors, suppliers, or remote team members outside the SEPA zone, from an existing business bank account, without the overhead of a dedicated corporate FX account or a monthly subscription.

• • 175+ destination countries and 100+ currencies from your EU/EEA account
  • Transparent fee shown upfront — exchange rate and receive amount confirmed before you send
  • Competitive exchange rates with senders paying less and recipients getting more.
  • Fast delivery: most transfers arrive quickly, not in days. Delivery time varies by destination country and the recipient’s chosen payment method.
  • Bank deposit and mobile wallet delivery where available in the destination country
  • No monthly fee, no minimum volume, free to set up
  • Regulated by the Central Bank of Ireland as a European Payment institution under PSD2, passported across all 23 EU/EEA launch countries
  • 24/7 support in German, French, Spanish, Italian, Portuguese, Dutch, and 11 other languages
  • Guaranteed delivery — Your transfers arrive on time. If they don’t, we’ll refund your transfer fees.

Remitly Business is purpose-built for outbound payments — it doesn’t include multi-currency accounts, expense management, or corporate card functionality. If your primary need is reliably paying contractors and suppliers internationally, it’s a straightforward fit. If you need a broader financial operating platform, you’ll want to evaluate separate providers alongside it.

Frequently asked questions

What’s the difference between SEPA and SWIFT transfers?

SEPA (Single Euro Payments Area) is a standardised system for euro payments between accounts in 36 European countries. It’s fast, cheap, and works via IBAN. SWIFT is an older messaging network used for international transfers beyond the SEPA zone. SWIFT transfers typically involve higher fees, a currency conversion margin, and can take up to 5 business days. For any contractor outside the SEPA countries, you’ll need SWIFT or a specialist international payment service.

Can I pay a contractor in any country from my EU business account?

Yes — with the right payment platform. Your bank supports SWIFT transfers to most countries, though fees and delivery times vary. Specialist international payment services like Remitly Business support 175+ countries with faster delivery and transparent fees.

Do I need to withhold tax when paying a non-EU contractor?

In most EU countries, no withholding tax applies when paying a non-EU contractor for services performed entirely outside the EU. However, rules vary by country, and factors like whether the contractor has a taxable presence in your country can change the position. Always confirm with a qualified tax adviser for your specific situation.

What bank details do I need from my contractor before I can pay them?

It depends on their country. You’ll generally need: full legal name, bank name, account number or IBAN, and a routing code. Routing codes vary by country: IFSC for India, CLABE for Mexico, BIC/SWIFT for most others, BSB for Australia. Ask your contractor for these details before the payment is due.

How long does an international contractor payment take from Europe?

SWIFT bank wires can take up to 5 business days. Specialist international payment services deliver most transfers within minutes to a few hours for major corridors. Delivery time depends on the destination country, the delivery method (bank deposit vs mobile wallet), and whether any additional verification is triggered.

What exchange rate will my contractor receive?

This depends on the rate applied at the time of the transfer. With specialist payment platforms, the exchange rate and the exact local currency amount your contractor receives are shown to you before you confirm. With bank SWIFT transfers, the rate is often not disclosed until after the transfer is processed.

Is Remitly Business available in my European country?

Remitly Business launched across 23 EU/EEA countries on 13 July 2026. For the full country list and to open your free account, find your country and click the link to the country’s page in the table above.

Do I need to open a new business bank account to use Remitly Business?

No. Remitly Business works alongside your existing bank account. You use it specifically for international payments outside the SEPA zone — your day-to-day banking stays where it is.

Summary

Paying global contractors from Europe comes down to one core decision: whether to use a bank SWIFT wire, or a specialist international payment service. Bank wires are universally available but carry layered, opaque costs and slow delivery times. Specialist platforms show the full cost upfront, deliver faster, and are increasingly regulated to the same standard as banks.

For EU/EEA businesses, the key things to have in place:

• Understand what SEPA covers and where it stops. For any contractor outside the SEPA zone, SEPA doesn’t apply.
• Collect your contractor’s full bank details — including country-specific routing codes — before the first payment is due.
• Use a platform that shows you the full fee and receive amount before you confirm. If the cost isn’t visible upfront, it’s hidden somewhere.
• Keep a transaction record for every international payment for your accounting and compliance records.
• Confirm your specific tax treatment with a qualified adviser in your country.

Remitly Europe Limited is authorised and regulated by the Central Bank of Ireland as a Payment Institution under the European Union (Payment Services) Regulations 2018 (Reg. No. 629909). Pursuant to the passporting provisions of the Payment Services Directive (PSD2), Remitly Europe Limited is authorised to provide payment services on a cross-border basis throughout the European Economic Area (EEA).