Unfortunately, it is not risk-free to hire an international contractor. However there are other solutions to limit the risks that come with employing contractors. By hiring the contractor as a full-time employee, the main risks are reduced or eliminated. The three main risks are: Legal and compliance uncertainty (“misclassification risk”) Hidden tax liability (“permanent establishment risk“) Ability to enforce contracts from abroad (risk to IP or competitor scalping) The easiest way to eliminate the risks associated with hiring international contractors is to hire full-time international employees; the initial costs slightly are higher, but the tax, legal, and compliance certainty are worth the additional costs for many companies.