Advantages of Employing Foreign Personnel on a Rental Basis in EU Countries

European Union companies face two critical issues while accelerating their cross-border growth plans: complex compliance obligations and access to a flexible, skilled workforce. Employing foreign personnel through the “rental” (employee leasing / staff leasing / posted worker) model offers an extremely effective tool to manage both areas simultaneously.

In this article, I will discuss step by step the strategic advantages of employing foreign personnel on a rental basis in EU countries, the compliance dimensions, and how working with international mobility consultants like Corpenza can ease your business.

1. What is the personnel leasing model and how does it work in the EU context?

Personnel leasing is a model for employing foreign workers through the payroll of an intermediary company (temporary employment agency / employer of record / leasing company) instead of your own payroll. The employee is legally considered the staff of the intermediary company; in practice, they perform tasks for you, within your processes.

1.1. Key actors and roles

The typical structure in EU countries creates a triangular relationship:

• Client company (you): Responsible for operational management, job description, performance, and daily workflow.
• Leasing / posted worker provider: Legal employer, responsible for payroll, tax deductions, social security notifications, and compliance with local labor law.
• Employee: Has a contract with the leasing company; performs their job in practice for the client company.

Corpenza establishes this structure across the EU, including the United Kingdom, with both personnel leasing and payroll (salary and expense management) services end-to-end.

1.2. The concept of “posted worker” and temporary employment in the EU

The rental personnel model in the EU is defined by two main frameworks:

• Temporary employment agencies and worker leasing regulations (regulated separately in each member state).
• The EU’s posted worker concept: An employee is temporarily “assigned” from one country to another; certain minimum working conditions apply in the host country.

This structure allows companies to quickly build teams in the field without establishing a local company. Corpenza integrates this model with residency/work permits, tax optimization, and international accounting dimensions.

2. Rapid market entry: The advantage of entering the field without establishing a company

When opening in a new EU country, time is the most critical resource. Establishing a local company typically takes 2-4 months in most markets, and becoming operational takes even longer. Personnel leasing reduces this time to weeks.

2.1. Starting work without opening a local legal entity

With the leasing model, you take the following steps:

• You do not wait for company establishment or branch opening in the target country.
• You quickly position your sales, business development, or technical teams through leasing.
• You decide on permanent presence in the country after testing the market.

Corpenza designs the following path for many entrepreneurs and investors:

• First 6-18 months: Personnel leasing + payroll with low risk and high speed structure.
• Maturation phase: Company establishment, tax optimization, and permanent residency/work permits.

2.2. Conducting market tests in a controlled and scalable manner

With leasing, you gain the following flexibility in market testing:

• You send a sales or technical team of 1-2 people to a new country first.
• If demand arises, you increase the team size with the same model.
• If your demand forecast does not hold, you do not enter costly processes like closing a local company.

Since Corpenza manages payroll management, expense management, and compliance processes in this phase, you can focus solely on commercial performance.

3. Transferring compliance obligations: Limiting legal and financial risks

Each EU country’s labor law, social security, payroll, and tax rules differ from one another. The margin for error for foreign employees should be close to zero; because administrative fines and back debts can quickly wipe out your profits.

3.1. Leaving the role of legal employer to professionals

The leasing provider takes on the role of legal employer, significantly reducing the following risks for you:

• Incorrect payroll calculations and missing social security payments.
• Labor law violations such as overtime, annual leave, minimum wage, equal pay.
• Incorrect tax declarations and delayed payments.

Corpenza integrates international accounting, payroll, and tax optimization expertise into leasing processes; thus, it protects the employee while keeping you away from administrative risk as the employer.

3.2. Regulations in the EU are frequently updated; let an expert track the current ones

The following topics are regularly changed within the EU:

• Minimum wage and working hours.
• Remote work, hybrid models, flexible working arrangements.
• Conditions for residency and work permits for foreign employees.

You can follow official updates, for example, from the European Commission’s employment and social rights page (here). However, translating this information accurately into company practices requires expertise. Corpenza minimizes the risk of penalties by quickly adapting its clients’ operations to these changes.

4. Cost control and financial transparency: The complete picture in a single invoice

When you directly employ foreign personnel, cost items appear scattered. In the leasing model, however, all costs are consolidated into a single, predictable invoice.

4.1. Clarifying total costs and budget planning

In the personnel leasing model, the following items are typically included in a single package:

• Gross salary.
• Employer social security and additional burdens.
• Legal leave payments, unemployment insurance, etc.
• Service fee of the leasing provider.

Corpenza transparently calculates the real monthly cost per person for each country in advance. This way, you can make profitability calculations more accurately on a project and country basis.

4.2. Growth with variable costs instead of fixed expenses

With leasing:

• You do not invest in local HR, payroll, and legal teams.
• You minimize items like local office, fixed infrastructure, tools, and equipment.
• You make personnel costs variable according to project duration and revenue cycle.

This model particularly supports the strategy of “secure project revenue first, then make permanent investments” for SaaS, consulting, software development, fintech, renewable energy, and industrial projects.

4.3. Expense management and tax optimization

Thanks to the payroll and expense management structure offered by Corpenza:

• You can accurately show the salaries of remote and contracted personnel as company expenses in the correct country and category.
• In companies with a group structure, you can optimize the distribution of costs across countries for tax purposes.
• In global reporting, you can track costs on a person and country basis in a comparable format.

At this point, correctly planning tax in both Turkey and the EU also reduces the risks of transfer pricing and double taxation that may arise in the future.

5. Access to talent, flexibility, and employee experience

The skilled labor shortage is growing in the EU; foreign workers are strategically important in software, engineering, healthcare, logistics, and green transformation projects. The leasing model creates advantages for both the company and the employee.

5.1. Rapid access to skilled foreign talent

Leasing providers typically have talent pools in multiple countries. This way:

• You can reach skilled foreign employees faster, especially in technology, finance, and industry fields.
• Instead of searching in a single country, you enhance profile quality by searching regionally or globally.
• With language and cultural diversity, you build deeper customer relationships in your target markets.

Corpenza manages not only the employer side but also the employee’s visa, residency permit, and compliance journey in personnel leasing processes; thus, shortening the onboarding time.

5.2. High flexibility for project-based and seasonal demands

Fluctuations in project and seasonal workloads are common in the EU. With the leasing model:

• You can establish teams with agreements specific to a certain project for 6-18 months.
• When demand decreases, you do not face the heavy burden of classic layoff processes while reducing personnel numbers.
• When entering a new country or sector, you test capacity without creating a “permanent headcount.”

This approach creates a cost management strategy preferred by investors, especially for start-ups and rapidly scaling technology companies.

5.3. A secure framework for foreign employees: Payroll, social security, and residency

The most significant advantage of leasing for foreign employees is the predictable and legal framework:

• They receive their salary on time and in accordance with local legislation.
• They benefit from social rights such as retirement, unemployment, and health insurance.
• Since residency/work permit processes are managed professionally, they do not face issues with immigration authorities.

Corpenza uses its expertise in residency permits, work permits, golden visas, and citizenship through investment channels to plan the long-term plans of both the employee and the employer under the same roof. For example, for a manager working on leasing for a certain period, you can later design a strategy for permanent residency or citizenship.

6. Strategic roadmap: Leasing, company establishment, and long-term residency plan

When entering the EU market, your goal should not just be to sign a few contracts; it should be to create a sustainable revenue structure and a legally solid asset. Personnel leasing constitutes the first and critical phase of this long journey.

6.1. Step-by-step global expansion strategy

Entrepreneurs and investors working with Corpenza typically implement the following phased plan:

• Phase 1 – Market testing: A team of 1-5 people is in the field in the target country with leasing and payroll, in remote or hybrid models. Tax burdens and operational costs are tested.
• Phase 2 – Company establishment: When revenue stabilizes, Corpenza establishes a company in that country, opens a bank account, and sets up accounting and payroll infrastructure.
• Phase 3 – Permanent residency and tax optimization: Options for permanent residency/work permits, golden visas, or citizenship through investment are evaluated for critical positions; tax optimization is done across the group.

This approach keeps risks low and allows you to present a story of “market validation + structurally compliant growth” to investors.

6.2. In which situations is leasing the most appropriate tool?

In the following scenarios, personnel leasing is generally the most efficient solution:

• If you want to test a new EU country within 6-24 months.
• If you have a high-skilled but limited-time need (e.g., project manager, senior developer, field engineer).
• If you want to quickly establish a compliant payroll and expense infrastructure in the EU for your company based in another country.
• If you want to show and report both your remote workers and contracted field personnel as expenses under a single roof.

Some companies prefer this model not only for small teams but even for sales and operations organizations with dozens of people permanently; because they do not want to keep compliance obligations in-house.

6.3. Trends to be followed after 2025

As of 2025, the following developments will directly affect the leasing and international workforce sector in the EU:

• Increased demand for foreign engineers in energy, infrastructure, and industry projects under the green deal.
• With digitalization, remote work becoming permanent; growing demand for “remote but locally compliant payroll” from different countries.
• Accelerated residency and work permits for skilled labor in migration policies; more attractive golden visa and citizenship through investment programs for investors.

In this dynamic environment, the most logical approach is to first enter the field with a flexible and compliant model, then place permanent building blocks at the right time. Corpenza manages exactly this transition: it combines residency permits, company establishment, payroll, personnel leasing, citizenship through investment, and tax optimization under a single expansion strategy.

6.4. Conclusion: Make leasing a part of your long-term growth policy

Employing foreign personnel on a rental basis in EU countries is not just a short-term “staff finding” tactic. When structured correctly:

• You enter new markets faster and with less risk.
• You transfer compliance and tax obligations to an expert structure.
• You access highly skilled international talent and build a flexible workforce architecture.
• You manage your expenses transparently, laying a solid foundation for tax optimization and company establishment steps.

If you have global expansion goals, evaluating the personnel leasing model in the EU along with residency permits, company establishment, and long-term citizenship strategies in a holistic plan would be the healthiest path. At this point, working with a partner like Corpenza, which focuses not only on a single country but on mobility across Europe and globally, accelerates the process and leaves no room for error.