A Comprehensive Guide to Hiring Remote Foreign Employees

With advancements in technology and globalization, expanding your workforce beyond borders is often not just an option but a necessity. 

This comprehensive guide is designed to walk you through how to hire remote foreign employees, providing insights into legal considerations, effective recruiting strategies, and best practices for managing an international workforce. 

Whether you’re looking to diversify your team or reduce operational costs, this article offers proven strategies and actionable advice to ensure that your venture into international remote hiring is feasible and successful. 

Can US Companies Hire Remote Workers From a Foreign Country?

The answer is yes—US companies can hire internationally legally. However, in most cases, you cannot hire remote workers as direct employees unless you have a legal entity in the workers’ country of residence. But there is another option: hiring them as independent contractors.

Contract arrangements allow you to provide an employment-like experience with full-time roles and paid time off (PTO). Additionally, it’s possible to offer other employee benefits, such as health insurance or gym memberships, through online methods. 

This makes it easier to ensure your remote foreign workers have access to all they need for optimal job satisfaction and performance.

6 Main Benefits of Hiring International Remote Workers

Hiring international employees has several benefits. Here are some of the most relevant to your bottom line.

1. You’ll have more talent to pick from

When hiring across borders, you’ll benefit from having access to a much wider talent pool of qualified professionals. By tapping into global markets, you can find the right candidate with the necessary qualifications. 

Furthermore, by broadening your search criteria beyond local geography and language barriers, you can discover new areas of expertise that may have been previously unavailable or overlooked.

2. It’s good for branding

Having a multicultural workforce is great for branding and attracting future candidates. Working with people from different countries can create a vibrant and stimulating work environment, helping you develop your employer brand. 

This cultural exchange shows that you value diversity, collaboration, and a diverse approach to problem-solving and creativity.

3. You’ll always be on time

Tapping into the global workforce lets you employ talented professionals in other parts of the world. Having such a presence across different time zones can be a major advantage. For instance, if you need an employee to cover certain working hours on other continents, you can hire global employees close to that region. 

Alternatively, if you prefer working with someone close to your time zone, then hiring remote foreign workers in Latin America (LatAm) may be ideal for your needs.

4. You can pay lower salaries

One of the major benefits of hiring remote foreign workers is that their salary expectations are often lower than those of domestic employees due to their lower cost of living. Depending on the country, living costs can be significantly less than in the US.

For example, some countries like India have relatively low minimum wages, at only $2.13 US daily, meaning you can save significant costs compared with hiring domestic talent while offering competitive salaries to remote workers in their local labor markets. 

Companies in the US hiring qualified remote foreign workers from LatAm can save anywhere from 30–70% of what they would pay to a US employee.

You can take advantage of these cost savings by investing in a talented foreign workforce while reallocating resources to other areas, such as marketing, product development, or customer service.

5. Diverse work culture and new perspectives

When hiring remote foreign employees, it is important to understand the nuances of work culture in different regions. Depending on your potential worker’s location, their values and behaviors may differ from your company culture. 

However, those values, behaviors, and abilities can also bring a unique set of benefits to your work culture. Remote foreign employees have the potential to introduce different perspectives, skill sets, and cultural influences that may not be available from domestic staff. 

This variety of influences can help you create an enriched environment where ideas are exchanged more openly and collaboratively.

6. Language skills

If you are looking to expand into international markets, hiring a remote worker who speaks different languages can enable you to work more effectively with customers and other stakeholders in their native language.

It can also provide your organization with invaluable insight into how you may need to adapt your operations and communication for certain markets or clientele.

How To Hire Remote Foreign Employees

There are two main options when it comes to hiring remote foreign candidates: doing it yourself or using an agency recruiting service. 

Do it yourself

If you decide to source candidates on your own, there are several steps you should take to ensure you have a successful international hiring process:

1. First, determine what skills and qualifications your ideal candidate should possess. 
2. Develop a job description that clearly outlines the position’s role, responsibilities, and expectations. 
3. Post this job description on popular job boards—such as Indeed, LinkedIn, and Glassdoor—in countries where potential candidates may reside. Consider also using social media platforms, like Facebook and Twitter, to spread the word about your job opening. 
4. Reach out to relevant professional groups or organizations and ask them to share your listing with their members. This will help you reach a larger audience of potential candidates who may not be familiar with traditional job boards. 
5. Network with other professionals in the same industry as well; they might know someone interested in working remotely for your company from abroad.
6. Select the most promising candidates to proceed to the interview stage. Document your interviewing process to ensure you ask each candidate the same questions.
7. Before you finalize a hire, make sure you have implemented a strong virtual onboarding process to set up your new foreign worker for success.

If sourcing and screening candidates on your own seems like too much work for you or your organization, an agency recruiting service could be the answer.

3 options for hiring workers from another country

Before you jump in and start hiring your foreign workers, it’s important to understand the three primary options for doing so: setting up a legal entity, partnering with a global employer of record (GEOR), or hiring and engaging contractors.

1. Set up a legal entity

Setting up a legal entity allows you to hire workers directly from another country without relying on an intermediary partner.

This requires significant up-front costs and administrative effort—including registering your business in that country, obtaining necessary licenses and permits, understanding local employment laws and regulations, and setting up a payroll system.

2. Partner with a global employer of record

Partnering with a GEOR can help you simplify the process by taking care of all the paperwork on your behalf. An employer of record (EOR) is a legal entity that enables businesses to hire foreign employees without needing to set up a subsidiary or branch office in the employee’s home country. 

The GEOR acts as an employer on behalf of your business, taking responsibility for all associated paperwork and compliance related to hiring and employing someone in another country. 

This includes salary payments, payroll taxes, regulatory compliance, and other tasks necessary for the employment relationship between the business and its foreign employees. 

Using an EOR is generally less expensive than setting up an entity, but it also means that you are relying on a third party.

3. Hire and engage contractors

Engaging contractors is an attractive alternative for many companies looking for foreign employees because it does not require setting up a legal entity or partnering with an employer of record. 

It also allows you to take advantage of local talent without establishing a long-term relationship with that person or company. However, this approach has some unique challenges related to taxation, visas, and other compliance requirements. 

No matter your choice, it is important to understand the legal obligations of hiring foreign employees and ensure that your business operations remain compliant with local labor laws. 

Use an agency

Professional recruiters can help you find the right candidate for your remote position and streamline the hiring process. They have access to a large network of professionals looking for opportunities such as yours, so they’ll be able to identify and present qualified candidates quickly. 

When selecting a recruitment agency, make sure that they specialize in remote foreign hires. Ask them about their experience with international clients, how they source candidates, and what screening processes they use to evaluate applicants. 

This will help ensure that you choose the right partner to assist you in finding the best candidate for the job.

9 Common Questions About Hiring Remote Workers in Other Countries

It’s essential to have a complete understanding of the process of remote hiring in other countries. Here are some of the most frequently asked questions about how to hire overseas workers.

1. Does a remote worker have to pay US taxes? 

No, not necessarily. Generally, remote workers are only required to pay taxes in the country where they reside and work. However, some countries may require that you withhold taxes from a foreign employee’s paycheck or submit tax documents on their behalf.

Here is a list of documents you may be required to submit if your worker is an employee and not a contractor: 

• A completed Form I-129, Petition for a Nonimmigrant Worker, and the filing fee
• An IRS 1099 Form documenting forms of payment
• Evidence of a valid employer-employee relationship (if they are not a contract worker)
• Evidence of the foreign worker’s qualifications for the position
• Proof that hiring a foreign worker will not adversely affect working conditions or wages of similarly employed US workers 
• Payment of fees associated with obtaining an employment visa (if applicable)
• A Form W-2, which is required for ICE to review the I-9 Form (if a visa is required)

Form W-8BEN, also known as a Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting, is the exception—international contractors must fill it out to prove their foreign classification with the IRS.

It is always best to consult an experienced immigration attorney when filing paperwork for a foreign worker’s visa to ensure accuracy and compliance with all applicable laws and regulations. 

You should also use an attorney’s advice when determining if a worker is an employee or a contractor, as misclassifying your workers could lead to penalties down the road.

2. Do I need to worry about paying taxes in their home country?

Yes, when you hire a remote worker in a foreign country, it is important to consider the taxation laws of their home country.

Depending on the specific employment regulations in that country, you may be responsible for paying taxes on behalf of your employee. However, if you partner with a remote hiring agency, they may take care of this process for you. Alternatively, you can hire workers as contractors to avoid many taxation issues.

3. Do I have to take care of remote workers’ benefits like health insurance?

It depends. If you are hiring remote foreign workers as employees, you need to account for remote workers’ benefits such as health insurance. Depending on the country you are hiring in, you may have to meet certain legal requirements to offer a fair and safe employment package to your remote worker. 

However, if you plan on hiring your foreign workers as remote contractors, you are not required to pay for benefits. This is one of the reasons why hiring remote workers on a contractual basis is so desirable for US companies.

‍4. Are remote foreign workers independent contractors?

It depends. Generally, you should hire foreign remote workers as independent contractors if they provide services independently and without direction from your business. Nevertheless, it’s always best to consult with a legal expert in each country where you plan to hire remote foreign workers before making any decisions.

5. How does the remote contractor model work?

The remote contractor model is a great way to bring on remote workers from other countries because it allows you to hire individuals on a freelance basis rather than having them as full-time employees.

This can provide flexibility and cost savings regarding taxes and payroll administration. Additionally, it offers flexibility and, often, better salaries for remote contractors.

In this model, you contract with an individual or company to do specific tasks for your company remotely. As part of this arrangement, the contractor agrees to take on a certain amount of work or number of hours per week and to return specific deliverables. 

You pay for these services directly without having to set up payroll or manage the employee’s taxes.

6. Does an international remote worker need a visa?

No, they do not. Foreign remote contract workers don’t require visas because they are based outside of the US. While these workers may have to come into the country occasionally to fulfill their contractual obligations, they shouldn’t have any issues entering as long as they can provide proof that their stay will be temporary. 

7. Should I pay for remote workers’ equipment?

This usually depends on the working relationship. If your foreign remote worker is an employee, you should pay for the necessary equipment they need to do their job. Depending on the specific job role, this could include a computer, software licenses, or other tools. 

It’s important to ensure your foreign employee has everything they need to be successful and productive working from home. However, if the employee is a contractor, you are not required to pay for their equipment. 

8. Do remote foreign employees have good internet service?

The speed and reliability of internet service have improved significantly in many parts of the world in recent times. However, if you’re hiring remote employees in a country with less developed infrastructure, there may be bandwidth and connection speed issues.

Make sure to research the country’s local internet access before making any remote hires. You can also assess this when you conduct virtual screening interviews. 

9. How can I retain top remote international talent?

Retaining skilled talent is essential when hiring remote foreign employees. To ensure the best results, provide competitive compensation and benefits tailored to their country’s job market. 

You should also offer a comprehensive onboarding process and stay in touch with your workers by setting up regular check-ins and providing ongoing feedback about their performance. Finally, offering career growth opportunities such as training programs or promotions can help keep your remote team motivated and engaged.

How To Pay Foreign Employees Who Work Remotely

Platforms like Deel, Remote.com, and PAPAYA enable seamless international payments without costly or complex wire transfers. However, it’s essential to consider the tax implications, which can vary depending on the employee’s country of residence.

Here are some details on each of these platforms:

Deel

To use Deel, you must verify your identity through a secure authentication process. Once verified, you can set up payment methods for your remote employees in multiple currencies, including US dollars and euros. 

Remote.com

Remote.com is an excellent choice for managing international staff payments. It allows you to quickly and securely handle all aspects of payroll, from hiring to salary payments. 

Papaya Global

Papaya is a versatile platform for paying remote employees worldwide. It supports automated payroll processes and offers access to various currencies, including US dollars, British pounds, and euros.

Regardless of the platform you choose for paying your international workers remotely, conduct thorough research to find the best solution for your business needs.

Which Roles Are Suitable for Hiring International Remote Workers?

Remote work is well suited to a wide range of roles. Here are just a handful of roles in which remote workers are highly successful:

• Administrative support
• Virtual assistants
• Customer service
• Finance
• Accounting
• Marketing
• Software engineering and IT

With proper planning and organization, remote foreign hires can thrive in a variety of roles in your business.

Should You Hire Offshore or Nearshore Remote Workers?

You can expand your workforce by hiring either offshore or nearshore remote workers. Choosing between the two can significantly impact your operations, so it’s important to understand the benefits and challenges associated with each.

Offshore remote workers

Hiring offshore involves recruiting talent in countries in a distant geographical location, such as in Asia or Africa. This approach often offers lower labor costs, allowing businesses to save on operational expenses. 

However, time zone differences can hinder real-time communication and collaboration, making coordination more challenging. Cultural and language barriers might also arise, which can affect team cohesion and effectiveness.

Nearshore remote workers

Nearshore outsourcing involves working with individuals from countries closer to your location, such as those in LatAm for US companies. This approach provides more overlap in working hours, facilitating smoother communication and more efficient collaboration.

Cost savings may not be as pronounced as with offshore options, and broader talent pools are sometimes limited in comparison. However, the balance between cost and operational efficiency often makes nearshore hiring the more attractive choice.

Ultimately, the best decision between offshore and nearshore remote workers depends on your business priorities. Evaluate all factors carefully to determine the best fit for your organizational goals.

Top 3 Partners for Outsourcing Remote Foreign Employees

Finding a reliable partner to help outsource remote foreign employees is essential. While some companies specialize exclusively in this area, others offer it as part of their broader talent recruitment services. 

Below, we highlight three reputable firms that can help you hire remote foreign employees. This list is not organized in any specific order.

1. Near

At Near, we are dedicated to connecting US businesses with top-tier talent based in LatAm. Our comprehensive support ensures that companies find the right candidates and navigate any challenges that arise throughout the hiring process. 

From understanding legal requirements to managing cross-border payroll, we offer a full spectrum of services to make hiring remote employees a seamless experience. However, most of our clients prefer to hire candidates as contractors due to the simplicity and convenience of this option.

2. Turing

Turing is another leading recruitment platform designed to help companies hire overseas talent in software and IT. With a focus on engineering roles, Turing uses an AI-powered platform to match businesses with highly skilled developers globally.

3. Globalization Partners

Globalization Partners offers a suite of services aimed at simplifying global employment. Known for its EOR capabilities, it enables companies to onboard and manage remote foreign employees quickly and compliantly.

Final Thoughts

By understanding legal considerations, choosing the right recruitment strategy, and selecting reliable partners, you can thrive in the increasingly remote environment of 2025.

At the heart of successful international hiring is the ability to seamlessly integrate remote employees into your existing team. This is precisely where recruitment companies like Near excel. 

Our expertise in connecting US businesses with skilled professionals based in LatAm ensures a smooth transition into global operations, as we provide comprehensive support at every stage of hiring.

Ready to take the next step toward expanding your team globally? Book a free consultation call with our experts. Together, we can build a dynamic, remote workforce that propels your business to new heights!