Tools · FreeMalta
The Hiring Decision
Before the Hiring Decision.
EOR, contractor, or local entity — three different cost structures, one question Malta founders never see answered in one place. Enter a country and a salary. See all three scenarios side by side.
How to use this
From estimate to signed contract
1
Estimate
Enter country + salary. See all three cost scenarios instantly.
2
Compare
Identify cheapest model for your headcount and timeline.
3
Download
Export PDF. Share with your CFO or co-founder.
4
Shortlist
Pick your model. Start with Payoneer, Deel, or Gusto.
5
Sign
Go live. Pay your team. No surprises.
Calculator
Three scenarios. One decision.
Input parameters
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Due diligence
Red flags to watch before you sign
Every EOR sales deck looks professional. These are the questions that separate platforms worth trusting from platforms worth avoiding.
They won't tell you their FX markup
Many EORs bury 2–4% in exchange rates on every salary payment. Ask for the FX spread in writing before signing. Anything above 1% above mid-market is worth challenging.
No named legal entity in your target country
If they use a local partner rather than their own entity, ask for the partner's name and registration number. You should be able to verify it. Inability or reluctance to provide this is a dealbreaker.
"We handle termination when it happens"
Ask for a step-by-step termination walkthrough for your target country including estimated severance and timeline. Vague answers mean they haven't done it there before or are hiding the cost.
Security deposit over 2 months gross
Typical deposits are 1 month gross, returned 30–60 days post-offboarding. 2+ months with vague return terms ties up significant cash and is a negotiating failure point.
Indemnification capped at fees paid only
If their indemnification clause only covers the monthly fees you've paid, you carry all the employment risk. You need them to be liable for payroll and tax errors they cause — get it in writing.
No references in your target country
Ask for two paying customers who have hired in the same country within the last 12 months and are willing to speak to you. If they can't produce this within two weeks, assume they don't have meaningful experience there.
Frequently Asked Questions
What is the difference between EOR, contractor and local entity hiring?
EOR (Employer of Record) means a third party legally employs the person on your behalf — you pay a management fee plus the employer burden. Contractor means you pay the person directly as a self-employed individual — cheaper but carries misclassification risk if the relationship looks like employment. Local entity means you set up a legal company in that country — highest setup cost but lowest per-person cost at scale.
How accurate are these calculations?
The calculator uses published statutory rates for income tax, employer social contributions and employee contributions per country. EOR management fees are based on publicly listed starting prices. The results are directional estimates — actual payroll outcomes vary by employee profile, benefit plan, region within the country, and negotiated EOR terms. Use this to shortlist and budget, not as a final payroll quote.
Why does FreeMalta recommend Payoneer for contractor payments?
Payoneer Workforce Management handles batch contractor payments in 70+ currencies without requiring local entities in each country. For Malta companies paying contractors across multiple countries, it collapses what would otherwise be separate SWIFT transfers, currency conversions and reconciliation tasks into one monthly payment run starting from $19/contractor/month.
When does EOR stop making sense financially?
EOR management fees ($399–$700/month per person) make sense when you have 1–5 people in a country and do not want to invest in local entity setup ($5,000–$20,000+ depending on jurisdiction). Once you have 8–12 employees in one country, the entity setup cost typically amortises within 12–18 months and ongoing per-person costs drop significantly. The calculator shows you this inflection point.
Can a Malta company pay contractors without an EOR?
Yes — if the person is genuinely self-employed and the relationship does not resemble employment under local law. The risk is misclassification: if tax authorities in the contractor's country determine the relationship is employment, you may face back-taxes, penalties and mandatory employment entitlements. Payoneer Workforce's Agent of Record (AOR) product provides a layer of misclassification protection for $99/contractor/month.
What is the Nuvei acquisition and does it affect Payoneer?
In June 2026, Canadian fintech Nuvei announced the acquisition of Payoneer for $2.75 billion. The deal is expected to close mid-2027. Until closing, Payoneer operates independently. The acquisition is expected to strengthen Payoneer's infrastructure and expand its currency and payment capabilities.
Recommended platforms
Payoneer WFM
Contractor payments
Best for paying existing contractors in 70+ currencies. No local entity needed. From $19/contractor/mo.
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Payoneer WFM
Employer of Record
Hire employees globally without a local entity. Payoneer EOR handles contracts, payroll and compliance in 160+ countries.
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Deel
EOR & hiring
Hire employees globally with full compliance. EOR in 150+ countries, contracts, payroll and taxes handled.
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Gusto
US payroll
The standard for US-based payroll, benefits and compliance. If you have US headcount, Gusto is the answer.
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Quick rule of thumb
1–7 people per country: EOR wins on speed and compliance.
8–12 people: Run the numbers. Entity setup may amortise within 18 months.
Contractors only: Payoneer WFM from $19/mo. No entity, no EOR fee.
8–12 people: Run the numbers. Entity setup may amortise within 18 months.
Contractors only: Payoneer WFM from $19/mo. No entity, no EOR fee.