Five years ago, a software engineer in Manila could land a job at a startup in Berlin - no visa, no relocation, just a Zoom call and a contract. Today, that same engineer might need a work permit in Germany, a tax ID in Spain, and a legal entity setup in the U.S. to get paid. The world didn’t become more connected. It became more fragmented. And for companies trying to hire the best people, no matter where they live, that fragmentation is the new normal.
Visa Policies Are Getting Tighter, Not Easier
In 2025, the U.S. H-1B visa cap is still 85,000 per year - and the approval rate for first-time applicants dropped to 58% from 76% in 2020. Canada’s Global Talent Stream still moves fast, but wait times for permanent residency have stretched to 24 months. The EU’s Blue Card program requires a minimum salary of €56,800 in Germany, €45,000 in France, and €40,000 in Spain - not because companies are rich, but because governments are trying to filter out low-wage labor under the guise of skilled migration.
It’s not just the West. India tightened its employment visa rules in 2024, requiring foreign hires to prove they’re replacing a local worker with a specialized skill - not just filling a gap. Australia now demands proof of local labor market testing for 90% of skilled visas. These aren’t temporary bumps. They’re structural shifts. Governments are no longer treating talent as a global resource. They’re treating it as a national asset to be controlled.
Remote Hiring Isn’t a Workaround - It’s a New System
When visas get harder, companies don’t stop hiring. They adapt. And that’s how remote hiring became the default, not the exception. In 2025, 68% of tech startups with over 50 employees hire at least one person remotely from a country where they don’t have a legal entity. But here’s the catch: remote doesn’t mean legal-free.
Many companies think they can pay a contractor in Brazil or Indonesia without any paperwork. They’re wrong. In Brazil, if you pay someone more than R$2,500 per month regularly, the tax authority considers it an employment relationship - even if you call them a freelancer. In Indonesia, foreign companies can’t pay local workers directly without a local partner. In the UK, if a remote worker spends more than 183 days in the country in a year, the employer may owe payroll taxes - even if the worker is based in Portugal.
That’s why companies are turning to Employer of Record (EOR) services. Firms like Deel, Remote, and Oyster now handle payroll, taxes, and local compliance in over 180 countries. A startup in Austin can hire a designer in Lagos, pay them in USD, and still follow Nigerian labor law - because the EOR is the legal employer. The founder doesn’t need a branch office. The employee doesn’t need a visa. The government gets its taxes. Everyone wins - if they know how to use the system.
The Hidden Cost of Ignoring Local Labor Laws
There’s a myth that remote work lets you ignore local rules. It doesn’t. In 2023, a U.S.-based SaaS company hired a developer in Spain as a contractor. They paid €3,000/month. No contract, no paperwork. Two years later, Spain’s labor inspectorate ruled the worker was illegally misclassified. The company owed €78,000 in back taxes, social contributions, and penalties. They lost the employee. They lost the money. And they got flagged for future audits.
Same thing happened to a Canadian fintech in Italy. They hired three people as freelancers. Italy’s tax office reclassified them as employees. The company had to pay 40% of the worker’s salary in retroactive social security fees - plus fines. The lesson? You can’t outsource compliance. You can only outsource the paperwork.
And it’s not just about fines. It’s about trust. Workers in countries like Mexico, Poland, or South Korea are increasingly aware of their rights. They know the difference between a real employer and a shell company. If you treat them like temporary gigs, they’ll leave. And they’ll tell others.
Who’s Winning at Global Hiring Right Now?
Not the big corporations with legal teams in every continent. They’re slow. They’re expensive. They’re stuck in old models.
The winners are the nimble ones:
- A Berlin-based AI startup that uses Deel to hire engineers in Ukraine, Colombia, and Vietnam - all on fixed-term contracts with local benefits baked in.
- A fintech in Singapore that pays its U.S. team through a U.S. payroll provider but hires its customer support team in the Philippines through a local EOR that handles overtime rules and holiday pay under Philippine law.
- A London design agency that doesn’t hire anyone in the UK anymore. All 12 employees are remote: two in Brazil, three in Indonesia, four in Poland, and three in Canada. They use Deel for payroll, Notion for onboarding, and weekly syncs to build culture.
These companies don’t have offices abroad. They don’t apply for visas. They don’t negotiate tax treaties. They use tools that do it for them. And they’re growing faster than companies trying to move people across borders.
The Future Isn’t About Moving People - It’s About Moving Payroll
Think about it: Why should a person move to Germany to work for a German company when they can work from their living room in Bucharest and get paid the same? The value isn’t in location. It’s in output. The infrastructure is catching up.
Platforms like Deel, Remote, and Papaya Global now offer:
- Auto-calculated local taxes and social security contributions
- Compliance with minimum wage, working hours, and termination rules
- Multi-currency payroll in over 100 currencies
- Integration with Slack, Zoom, and HRIS systems
And it’s getting cheaper. In 2020, using an EOR cost $500 per employee per month. Today, it’s under $150 for basic packages. Some even offer free trials. The barrier to hiring globally isn’t money anymore. It’s awareness.
What You Should Do Today
If you’re hiring across borders, here’s what to do right now:
- Stop thinking in terms of visas. Start thinking in terms of legal entities.
- Use an EOR for every new hire outside your home country - even if they’re remote.
- Don’t pay contractors in countries with strict labor laws (Brazil, Spain, Italy, France, South Korea) unless you’re using an EOR.
- Track where your remote workers spend time. If someone is in your country for more than 90 days, consult a tax advisor.
- Document everything. Contracts, pay stubs, time logs. If you’re audited, you need proof you followed the rules.
And if you’re still trying to bring people over on work visas? You’re not behind. You’re outdated. The future of talent isn’t in immigration lines. It’s in cloud payroll systems.
What’s Next for Global Talent?
There’s a quiet revolution happening. Countries are starting to offer digital nomad visas - but only for freelancers and investors. Not for employees. That’s because they still don’t know how to tax remote workers properly.
But the real shift is coming from the private sector. In 2026, we’ll see the first global payroll standard - a single contract format that automatically adjusts for local labor law, tax, and currency. It won’t be perfect. But it’ll be better than what we have now.
For now, the rule is simple: Hire where talent lives. Pay where the law says. Don’t move people. Move the system.
Can I hire someone in another country as a contractor to avoid visas?
Sometimes - but not always. In countries like Brazil, Spain, Italy, and South Korea, regular payments to a contractor can be reclassified as employment by tax authorities, even if you call them a freelancer. If you pay someone monthly for over 6 months, you’re likely creating an employment relationship. Use an Employer of Record (EOR) to stay compliant.
What’s the cheapest way to hire internationally?
The cheapest way is to use an EOR like Deel or Remote. They charge as little as $150 per employee per month, which includes payroll, taxes, and compliance. Trying to handle it yourself with contractors or local entities often costs more in legal fees, penalties, and time. For small teams, EORs are cheaper than hiring a local lawyer.
Do I need a business license to hire remotely?
No - not if you use an Employer of Record. The EOR acts as the legal employer in the worker’s country, so you don’t need to register a branch, pay local corporate taxes, or get a business license. If you pay workers directly without an EOR, you might trigger legal obligations - including corporate registration - depending on the country’s rules.
How do I handle taxes for remote workers?
Taxes depend on where the worker lives and where they spend time. If a worker is based in Germany but travels to the U.S. for 4 months, they may owe taxes in both countries. EORs handle this automatically by calculating local income tax, social security, and withholding. If you pay directly, you risk underpaying taxes or triggering double taxation. Always use an EOR unless you have a legal team in every country.
Can remote workers get benefits like health insurance?
Yes - and in many countries, they’re legally entitled to them. In Brazil, workers get access to public healthcare. In Poland, employers must pay into the national social security system. EORs include these benefits by default. If you pay a remote worker directly, you may be violating local labor law. Even if you don’t offer benefits, the law might still require them. Don’t assume remote means no benefits.
Global hiring isn’t about finding people who can cross borders. It’s about building systems that let talent stay where they are - and still be paid fairly, legally, and on time.
