How to Pay a European Contractor With Wise

To pay a European contractor with Wise from the US: open a Wise Business account (free to register, $31 one-time to unlock all features), add the contractor as a recipient with their IBAN and the currency they invoice in, fund the transfer from your bank, and send. On a $1,000 payment to euros, Wise's own page quoted $5.47 by direct debit, $9.87 by bank transfer, and about $52 to $65 by card on 14 October 2026, at the mid-market exchange rate with no monthly fee. For several contractors on the same day, the batch tool pays up to 1,000 recipients from one file.

This is the step list from Wise's pages, with fees as stated on the day, plus the three things that are not about Wise: the contractor's tax form, what to put on the invoice, and when a contractor platform is the better tool.

Key takeaways

• Wise Business: free to register, $31 once for the full feature set, no monthly fee, transfers from 0.23% and the mid-market rate.
• Fund from your bank, not a card. On $1,000 to EUR, direct debit was $5.47 and a credit card $65.38 on the day checked.
• Batch payments cover up to 1,000 recipients per file, so monthly contractor runs take minutes.
• Collect a signed W-8BEN from each non-US contractor before the first payment and keep it on file; it goes to you, not the IRS.
• Wise moves money. It does not check whether the person should be a contractor at all; that question is yours and your lawyer's.

What does Wise cost for paying contractors?

From the Wise Business pricing page for the US and the USD to EUR transfer page, both read on 14 October 2026:

Fees change, and the figures above are examples from one day. The point that does not change: fund from a bank account and the fee is under 1%; fund from a card and it is 5 to 7%. Wise's business page says 96% of payments arrive in under 24 hours (its Q3 2025 figure), which matters when a contractor invoices on the 1st and expects money by the 3rd.

How do you pay a contractor with Wise, step by step?

1. Open the account. Register at Wise Business with your company details and the identity of a director. Verification can take a few days; do it before the first invoice arrives, not after.
2. Collect the contractor's details. Full legal name as it appears on their bank account, IBAN, the bank's BIC if asked, the currency they invoice in, and their address. Ask for these on the first invoice so they are in one place.
3. Collect the W-8BEN. According to the IRS instructions for Form W-8BEN, the form certifies the contractor's foreign status, is given to you as the payer rather than filed with the IRS, and generally stays valid through the end of the third calendar year after it is signed. A business contractor (a Polish JDG or a UK limited company, for example) may give you a W-8BEN-E instead. Your accountant should confirm which, and whether any US reporting applies to you.
4. Add the recipient. In Wise: Recipients, add a business or personal recipient, choose the currency (EUR, GBP, PLN and others), enter the IBAN. Wise checks the IBAN format as you type.
5. Send the payment. Choose the amount in the contractor's currency so they receive exactly what they invoiced, choose a bank funding method, add the invoice number as the reference, confirm. The fee and the rate are shown before you confirm.
6. For several contractors, use batch payments. Wise's business page describes paying up to 1,000 recipients in one batch from a file: one row per contractor with the amount and currency. Run it on the same day each month so contractors can plan.
7. Keep the records. Invoice, W-8BEN, Wise receipt with the rate and fee, for each payment. Your accountant will want the fee and the exchange rate separately.

Before you pay anyone as a contractor, settle the contract question. If the person works your hours, takes daily direction and has no other clients, most European countries will treat them as an employee whatever the invoice says. The contractor or employer of record guide explains the line, the glossary entry on contractor vs employee gives the short version, and the seven mistakes US founders make on a first European hire shows what an audit costs. A local lawyer or accountant should confirm the setup for each country.

If you are hiring the contractor now rather than paying one you already have, Hiring Done For You delivers three vetted candidates in 21 days for a flat $6,500, with a 12-month replacement guarantee; book a call to scope the role. If you would rather run the search yourself, post the role for $299 and it is live for 60 days.

What should the contractor's invoice say?

Their legal name and address, their business registration or tax number where their country issues one, your company name and address, an invoice number and date, the period and the work, the amount in the agreed currency, and their IBAN. For EU contractors invoicing a company outside the EU, their own VAT position depends on their country's rules for services supplied to a business outside the EU; the guide to working for a US company from Poland walks through the contractor's side for one country. You do not withhold anything in the US on a payment to a foreign contractor who has given you a valid W-8BEN for services performed outside the US; your accountant confirms that for your situation.

When is a contractor platform better than Wise?

Wise moves money cheaply. It does not draft the contract, collect the tax form, store it, chase the invoice, or warn you that the contractor in Germany looks like an employee. Contractor management platforms do: Remote's contractor management is listed from $29 per contractor per month and Deel's at $49, with Deel's contractor of record (where Deel is the contracting party) at $325. On one contractor that is $348 to $588 a year against a few dollars in Wise fees; on ten contractors in five countries it is the cost of not doing the paperwork yourself. Many companies use both: the platform for contracts and compliance, Wise or the platform's own payout for the money. The salary calculator shows the contractor cost next to a US employee so you can see the whole number.

FAQ

Can I pay a European contractor from the US with Wise?

Yes. Wise Business sends to IBAN accounts across Europe in EUR, GBP, PLN and other currencies, at the mid-market rate with a fee from 0.23%. Fund it from your bank account rather than a card, and the fee on $1,000 was under $10 on the day checked.

Do I need to send a 1099 to a foreign contractor?

Generally not for a non-US contractor performing the work outside the US who has given you a W-8BEN; the form is what documents that. This is general information and the rules have exceptions, so ask your accountant before the first year-end.

Should I pay the contractor in dollars or in their currency?

Agree it in the contract and keep it. Paying in their currency means they receive exactly the invoiced amount and you carry the exchange rate; paying in dollars means they carry it. Most European contractors prefer their own currency once they have paid a year of their own taxes in it.

How fast does a Wise payment arrive in Europe?

Wise's business page says 96% of payments arrive in under 24 hours, and the USD to EUR page says most arrive in seconds when funded by direct debit. Bank-transfer funding adds the days your bank takes to send the money to Wise.

The short version

Register a Wise Business account, pay the $31 once, add the contractor with their IBAN and currency, fund from your bank, send with the invoice number as reference, and use batch payments once you have more than two contractors. Collect a W-8BEN first and keep it with each invoice and receipt. Use a contractor platform when you need contracts and compliance handled, not just money moved. If you are still hiring the contractor, book a call about Hiring Done For You, or post the role for $299 and it is live for 60 days.