PHP contractor working with EU clients from Ukraine: practical questions
Working as a PHP contractor for an EU company remotely. Questions on the practical setup others from similar situations have worked out.
Specifically: which contract structure do you use, how do you handle invoicing, any issues with receiving payments.
Individual entrepreneur (FOP in Ukraine) with a foreign currency account at a Ukrainian bank. Contract as a service provider, invoice in EUR. Payoneer or SWIFT wire from the EU client. Works reliably with Western EU clients.
Wise Business account is popular for receiving EU payments with lower fees than SWIFT. You get EU IBAN which makes invoicing simpler for EU clients who prefer local bank transfers.
The FOP model (tax 5% on income) is the standard setup. Tax office registration is straightforward. Make sure you have a service contract in English that the EU client has signed, for both tax purposes and dispute resolution.
Some EU companies (especially German ones) are cautious about contracting with Ukrainian FOP post-2022. They may require contractor insurance or a statement of tax residency. Have these documents ready.
Deel and Remote.com are used by some EU companies to hire contractors in countries they do not have entities in. These simplify the administrative side but take a fee. The company pays them, they pay you as an employee equivalent.
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