EOR vs PEO for Europe: the practical difference
A human, plain-language guide to deciding between an Employer of Record (EOR) and a PEO when hiring in Europe.
This guide addresses the most common long-tail searches around EORs in Europe.
- EOR vs PEO for Europe
- employer of record vs PEO
- EOR or PEO for EU hiring
- difference between EOR and PEO
Quick definition
An EOR becomes the legal employer in the target country, which lets you hire without opening a local entity.
A PEO co-employs through your local entity, so you keep legal employer status and responsibility.
When an EOR is the better fit in Europe
If you do not have a local entity, an EOR is the fastest compliant path to hire in the EU.
- You need to hire in multiple EU countries quickly
- You want entity-free hiring with local payroll and tax compliance
- You prefer one vendor to manage country-specific onboarding
When a PEO is the better fit
If you already have an entity, a PEO can be efficient for HR administration and benefits.
- You have a legal entity and want co-employment support
- You need help with HR admin, but keep employer liability
- You want local benefits administration while retaining control
Decision checklist for EU hiring
Use this short list to decide EOR vs PEO for European hiring.
- Do you have an entity in the target country?
- How fast do you need compliant onboarding?
- Which party will carry employer liability?
- Are you hiring in one country or many?
Common mistakes we see
Teams often pick a PEO for EU hiring without an entity, or assume an EOR is only for contractors.
The cleanest decision is usually about legal employer responsibility, not just cost.
FAQ
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