Expanding your business beyond Portugal opens a wealth of opportunities in new markets. However, international hiring comes with its challenges, from managing different labour laws and tax systems to ensuring compliance with local regulations. Each country operates like its own ecosystem, requiring a deep understanding of local employment laws and administrative processes.

This is where a specialised Employer of Record (EOR) can make a significant difference. Acting as the legal employer for your overseas staff, an EOR manages payroll, taxes, benefits, and compliance, freeing your business to focus on growth without the complexities of setting up a legal entity in every new market.

If you’re ready to expand beyond Portugal, here’s how an EOR can simplify hiring in key global markets.

How an Employer of Record (EOR) works

An EOR acts as the legal employer for your international hires while you retain full control over their daily responsibilities and operations. Essentially, the EOR takes care of the administrative and legal tasks—such as drafting compliant contracts, managing payroll, and ensuring tax compliance—so you can focus on your business strategy.

For example, suppose your company wants to hire a project manager in Italy. In that case, an EOR will handle all employment-related responsibilities, including compliance with Italian labour laws and managing payroll, while you direct the project. This approach ensures you can expand into new markets without getting bogged down in the regulatory complexities.

Key markets for EOR solutions outside Portugal

To expand successfully, it’s essential to work with an EOR provider that specialises in the country where you plan to operate. Below are some key markets where an EOR can support your business.

United Kingdom

The UK offers a skilled workforce and a robust economy, making it a desirable market for expansion. However, post-Brexit, employment regulations can be challenging to understand. A UK-based Employer of Record ensures compliance with local labour laws, manages payroll, and handles tax obligations, allowing you to focus on scaling your operations.

Imagine a startup planning to set up in London but unsure how to navigate holiday pay and pension requirements. Partnering with a British Employer of Record (EOR) could resolve these issues, ensuring smooth onboarding and compliance. I recall working with a Portuguese startup in a similar situation—their EOR managed every detail, from pensions to local contracts, allowing them to focus entirely on growing their operations.

Spain

Spain’s strong economy and tax incentives, like the Beckham Law, make it an attractive destination for businesses. However, understanding Spain’s detailed labour regulations and social security system can be complex. A Spanish Employer of Record takes on these challenges, managing employment contracts, payroll, and compliance.

For example, a Portuguese company in the hospitality sector partnered with an EOR to hire staff in Barcelona. The EOR handled payroll and employment contracts and ensured compliance with local regulations, letting the company concentrate on building its team and delivering quality service. Similarly, a tech company might use an EOR to simplify hiring in Spain, enabling seamless growth without the administrative hassle.

United States

The US offers vast opportunities but presents unique challenges due to state-specific labour laws and tax requirements. An American Employer of Record simplifies these complexities by managing compliance, payroll, and benefits across states, enabling you to hire confidently.

I worked with a tech company from Lisbon that expanded to California but was overwhelmed by the complexities of US labour laws. The state’s intricate employment laws overwhelmed them, but their EOR ensured compliance with local regulations, making it possible for the company to grow its workforce seamlessly.

Italy

Italy is an appealing market with a strong talent pool, but its intricate labour laws and social security requirements can deter businesses. An Italian Employer of Record ensures compliance with local employment laws, from managing social contributions to drafting employment contracts.

Imagine a Portuguese marketing firm aiming to establish a presence in Milan. By working with an Italian EOR, they could draft compliant employment contracts, manage payroll seamlessly ensuring a smooth entry into the Italian market.

Netherlands

The Netherlands is a gateway to European markets, known for its business-friendly environment and innovative culture. A Dutch Employer of Record helps manage compliance, payroll, and benefits, including expat-friendly schemes like the 30% tax ruling.

I assisted a renewable energy company from Porto that expanded to Amsterdam. Their EOR helped them leverage the 30% ruling while managing benefits and payroll, freeing the team to focus on their renewable projects.

Switzerland

Switzerland’s competitive tax environment and stability make it an attractive destination for businesses, but its labour laws and tax systems require careful examination. A Swiss Employer of Record simplifies the process by managing compliance and handling payroll and social security contributions.

For example, a financial services company from Braga wanted to hire analysts in Zurich. The EOR managed all employment details, ensuring the company could enter the Swiss market without delays.

United Arab Emirates (UAE)

The UAE offers immense opportunities for businesses looking to expand in the Middle East. However, strict visa requirements and labour laws can complicate the hiring process. An Emirates Employer of Record ensures compliance with local regulations so you can focus on scaling your operations.

I worked with a construction firm from Lisbon and partnered with an EOR to onboard contractors in Dubai for a major project. The EOR handled visa applications and payroll, enabling the firm to meet its deadlines while staying compliant.

Need an EOR in another country?

If your expansion plans include countries not mentioned here, don’t worry. At Hightekers, we provide Employer of Record services in over 100 countries, ensuring your global hiring needs are met wherever your business takes you. Our global expertise allows you to confidently explore new markets, knowing that professionals manage compliance and payroll.

How an Employer of Record simplifies global expansion

Expanding into new markets can feel overwhelming, with diverse regulations, tax systems, and employment requirements to manage. An EOR simplifies this process by handling the administrative complexities, enabling your business to focus on strategic growth.

For instance, I worked simultaneously with a Portuguese fintech company expanding into Spain and the Netherlands. Their EOR managed the compliance requirements in both countries, allowing the company to scale its workforce and enter new markets without delays.

If you’re looking to grow beyond Portugal, let an Employer of Record handle the administrative and legal challenges of international hiring. Contact us today to learn how we can help you expand globally with confidence!