As agencies grow, or simply try to find specialist talent, there is often a wish to hire somebody who happens to be based in another country.

Doing that without considering the legal and tax implications could land you with some big problems. Therefore it's worth considering the different approaches and consciously deciding which would be best for your agency.

The options are:

1. Just employ people abroad from your existing company

The extra cost of this upfront is zero, but there is massive exposure legally, financially, and from a tax perspective. You would have to understand employment law in each country (many countries don’t respect the country of employment stated in a contract, the presence of the employee in their country places them automatically under the local regulations), the health and safety regulations, insurances and so on. There’d be a risk of those countries deciding to raise taxes on your business in addition to your current taxes in your home country. We strongly advise against this option.