> For example in Europe a German company can't hire a French dev if the german company doesn't have a legal entity in France, it quickly gets out of control both in term of paperwork and cost.
They can - they just have him as a contractor, not a permanent employee. Source: I'm a Polish contractor contracting for a German startup.
As an entrepreneur (contractor) in Poland, you get free state-provided healthcare. You're also paying mandatory contributions to state-provided pensions (equivalent of US social security). It's true there is no job security, but in return you pay 17% in total tax burden on your income and not 40-50% you pay in Germany. The rates are also much higher than full time salaries, so in the end you take home probably twice what your German colleagues take, while having a fraction of their costs of living. Do that for 10 years and you end up with $1 million in the bank, which is enough to retire early in Poland.
They can - they just have him as a contractor, not a permanent employee. Source: I'm a Polish contractor contracting for a German startup.