The short answer
Eastern Europe, Latin America, and South Africa are three of the most active freelance talent pools for UK and EU agencies right now. Competitive rates, strong technical and creative skills, and time zones that work. The payment infrastructure, however, hasn't kept up. Here's how to get money to contractors in each region without losing a significant chunk to fees, FX spreads, and delays.
Paying freelancers in Eastern Europe
The main markets: Poland, Romania, Czech Republic, Ukraine, Serbia, and Bulgaria.
For EU-registered freelancers in Poland, Romania, Czech Republic, and Bulgaria, EUR transfers via SEPA are fast and low-cost. If you have a multi-currency account with Wise Business or a EUR-capable bank, SEPA transfers typically land same-day or next-day with minimal fees. This is the cleanest route for most Eastern European payments.
For Ukraine and Serbia, both outside the EU, SWIFT is the default but adds cost and delay. Wise covers both countries with competitive FX rates and is the practical choice for most agencies. USDC stablecoin is increasingly used by Ukrainian freelancers in particular, given currency instability and the speed of stablecoin settlement versus a SWIFT wire that can take 3-5 business days.
Before the first payment:
- Get a signed contractor agreement with IP assignment clauses
- Confirm their local tax obligations — most Eastern European freelancers invoice as a registered sole trader or limited company
- Agree currency preference upfront: EUR for EU-based contractors, USD or USDC for Ukrainian and Serbian freelancers who want to avoid local currency volatility
Paying freelancers in Latin America
LatAm is one of the fastest-growing freelance markets globally, with strong talent in engineering, design, and marketing. The payment complexity varies significantly by country.
Argentina is the outlier. The ARS is structurally unstable and has lost significant value against the dollar over the past five years. Most Argentine freelancers want to be paid in USD or USDC, not ARS. Stablecoin is not a novelty here, it's the practical default. Wise supports Argentina but ARS settlement is often less useful to contractors than a USDC wallet transfer they can hold and off-ramp on their own schedule.
Brazil, Chile, and Colombia are more straightforward. Wise covers all three with competitive rates. Local rail settlement in BRL, CLP, and COP is available and typically faster than SWIFT. Payment in local currency is fine for most contractors and avoids the USD conversion premium. Colombia and Chile have seen growing stablecoin adoption, but local currency bank transfer remains the primary expectation.
Key considerations for LatAm:
- Brazil has complex contractor tax rules. Depending on the contractor's setup, withholding obligations may apply. Get a signed contract and seek local legal advice for ongoing relationships.
- Always use a contractor agreement with clear IP assignment and jurisdiction clauses
- For Argentine freelancers specifically, agree on USDC payment upfront and use a platform that supports stablecoin settlement
Paying freelancers in South Africa
South Africa has a large, English-speaking professional services talent pool with strong overlap with UK business hours. Design, engineering, marketing, and operations talent is competitive on rate relative to UK equivalents.
ZAR is a volatile currency. Many South African freelancers prefer USD-denominated invoicing even when their day-to-day expenses are in ZAR. It protects them from the risk of the rand weakening between the invoice date and the payment date.
Wise Business handles ZAR transfers well, with significantly better rates than most UK high-street banks. SWIFT fees from a UK bank to South Africa typically run £15-£25 per transfer plus an FX spread. On a £2,000 payment, that's 1-2% before you've started. Wise eliminates most of that.
USDC stablecoin is a viable option for South African contractors who want to hold in USD and off-ramp to ZAR on their own terms, managing their own FX timing rather than being subject to the rate on payment day. Petl Pay supports ZAR local rails and USDC settlement for South African contributors, reducing the cost-per-payment and removing the SWIFT delay entirely for eligible transfers.
The cross-border payment stack that works
For agencies paying regularly across all three regions, the practical setup is:
- Wise Business: handles most Eastern Europe and LatAm transfers cleanly. Free batch payouts to multiple recipients, competitive FX, and multi-currency account balances.
- USDC wallets: for Argentina, Ukraine, and South African contractors who prefer stable-dollar settlement. Near-instant cross-border transfer, ~0.5-1% off-ramp fee to local fiat.
- Petl Pay: if you're managing multiple contributors per project, Petl Pay handles the split from a single client invoice across fiat and stablecoin rails in one workflow — so you're not running three separate payment runs for three different regions.
Compliance checklist before you pay
- Signed contractor agreement with IP assignment
- Confirmed contractor status (not employee) in their jurisdiction
- Invoice received before payment is sent
- Currency and payment method agreed in writing
- FX rate recorded for your own accounting
- Contractor's local tax obligations confirmed (your liability, their filing)
Frequently asked questions
Do I need to withhold tax when paying overseas freelancers?
Generally not, if they're genuinely self-employed contractors invoicing you from their own registered business. UK companies paying overseas contractors are not typically required to withhold tax at source. The contractor is responsible for their own tax obligations locally. A signed contract confirming their status protects you in the event of a dispute.
What's the cheapest way to pay freelancers in South Africa?
Wise Business is the lowest-cost option for most bank-to-bank transfers. For larger or recurring payments where the contractor wants USD exposure, USDC stablecoin settlement via a platform like Petl Pay reduces costs further and removes the SWIFT delay.
What's the best currency to pay an Argentine freelancer?
USD or USDC. ARS is too volatile for most contractors to want to hold. USD bank transfer via Wise or USDC wallet settlement are both practical. USDC is often preferred because it gives the contractor full control over when they convert to ARS, rather than being locked into the rate on the day of transfer.
Is stablecoin payment legal for freelancers in Latin America?
It depends on the country. In Argentina, USDC payments are widely used and practically standard for international contractor work. In Brazil and Colombia, crypto and stablecoin regulations are evolving but freelancer payments via stablecoin are generally permissible. Always maintain a proper contractor agreement and invoice regardless of payment rail.
How do I handle multi-currency payments in my accounting?
Record the GBP amount sent, the FX rate applied, and the currency received by the contractor. Xero handles multi-currency accounting well and integrates with Wise for automated reconciliation. If you're processing multiple international payments per month, a payment platform with built-in reconciliation and audit trail reduces the manual work significantly.
What's the difference between paying contractors in Poland versus Ukraine?
Poland is EU-based, so EUR SEPA transfers are cheap and fast. Ukraine is outside the EU, so SWIFT or stablecoin are the practical options. Ukrainian freelancers are among the most active adopters of USDC settlement globally, partly driven by the need for stable-value currency and fast settlement during ongoing economic disruption.
