Global Hiring Navigator

Answer six questions to see whether to hire someone abroad as a contractor, through an Employer of Record, or through your own entity.

Do you have a legal entity in Germany?
How many people do you plan to hire there?
How long is the work?
Will you set their hours, tools and day-to-day work?
Will they work full time, only for you?

Our recommendation

Hire through an Employer of Record (EOR)

  • You'd direct their hours, tools and day-to-day work, which is how employees are managed.
  • They'd work full time for you only, which looks like employment to most tax authorities.
  • The role is ongoing, not a fixed project.
  • An EOR employs them for you under local law, without setting up an entity.

How Toku helps in Germany

  • Toku has a dedicated onboarding flow for Germany: 12 steps, including personal information, emergency contact, visa and work permits.
  • Toku employs them for you and runs local payroll, benefits and compliance.

Want a second opinion on your hiring plan? Toku's team can walk through it with you.

Talk to Toku

This is general guidance, not legal advice. Whether someone counts as an employee depends on the facts of the working relationship and local law.

Last updated 2026-11-04.