When you're building a global team, the terms "visa" and "work permit" might seem interchangeable. However, in most legal systems, they represent two distinct layers of authorization, and confusing one for the other can lead to compliance headaches, delayed start dates, or worse.
Understanding the difference is crucial because it enables you to plan realistic hiring timelines, budget for the appropriate fees and legal support, and prevent inadvertently putting an employee (or your company) at risk of non-compliance.
The easiest way to understand which option is needed is this:
- A visa determines whether someone is allowed to enter and remain in a foreign country, and for how long.
- A work permit determines whether that person is legally allowed to work there, and under what role, employer, and conditions.
Many countries require both. Some bundle them into a single process. And some use overlapping terminology that makes the distinction unclear. Let's break it down.
Key takeaways:
- A visa authorizes an individual to travel to and remain in a country for a specific purpose, while a work permit grants them the right to be employed in that country.
- Depending on the country, workers may need a visa, a work permit, or a combined work visa. Some systems require a two-step process (separate entry visa and work authorization), while others use a single document for both.
- Classifying someone as a contractor, obtaining a business visa, or allowing an employee to work in another country remotely doesn't automatically resolve immigration or labor law obligations.
What Is a Visa?
A visa is an official authorization that allows a citizen of one country to travel to and request entry into another country for a specific purpose, such as tourism, business, study, family reunion, or work. A visa allows you to travel to a port of entry and request permission to enter, but it does not guarantee entry or automatically grant the right to work.
Across most immigration systems, visas are issued for specific purposes. Governments create different visa categories (tourist, business, student, work, etc.), and each category dictates what the holder can and cannot do.
Not all visas permit employment. Tourist visas and many business visas explicitly prohibit local employment, although they may allow activities such as meetings, negotiations, or conferences.
Visas also have strict time and travel limits. Typical visa stipulations include:
- Maximum length of stay per visit
- Total validity (e.g., a visa valid for two years with 90-day stays)
- Single- versus multiple-entry privileges
Work Visas as a Subcategory
Within the broader visa universe, there are temporary work visas that permit the holder to work in the country, typically for a specific employer and in a specific job. Examples include:
- Skilled worker visas (for roles meeting specific qualification and salary thresholds)
- Intra-company transfer visas (for moving existing employees between company entities)
- Seasonal work visas (for agriculture, hospitality, and similar sectors)
- Entrepreneur or start-up visas (for founders establishing businesses locally)
In some countries, a work visa is sufficient to both enter and work in the country. In others, the visa functions more like entry clearance, and the person receives a separate residence or work card upon arrival.
The key distinction is that a visa controls entry and length of stay in a country, not whether someone can legally work there. Simply put, a visa regulates entry and stay, not employment rights. Whether that purpose includes employment depends on the visa type and local law.
What Is a Work Permit?
A work permit, also known as work authorization, is the legal approval that enables an individual to engage in paid work in a specific country. Simply put, a visa determines whether you are allowed to enter and stay in a country, while a work permit determines whether you can legally be employed there, and on what terms.
Work permits are employment-focused. They often specify the employer, job title, location, and duration of employment. Most work permits are tied to a specific employer and will only allow you to work for that employer on the permit.
Obtaining a work permit typically requires sponsorship from an employer. Depending on the category, the employer may be required to:
- Sponsor the application
- Show a valid job offer and a compliant employment contract
- Meet salary thresholds or conduct local labor market tests
While most work permits are employer-specific, some countries offer open permits that are not tied to one employer. For example, Canada’s open work permit, Germany’s opportunity card, and Australia’s skilled independent visa allow foreign workers who meet specific criteria to work for almost any employer.
In the United States, a work permit is often referred to as an Employment Authorization Document (EAD). USCIS describes the EAD as proof that a noncitizen is authorized to work in the U.S. for a specific period, separate from their underlying visa status. EADs are a good example of how visa status and work authorization can be separate layers that both need to be satisfied.
Key Differences Between Visas and Work Permits
While the terminology varies from country to country, these patterns hold across many systems:
How Do You Know if an Employee Needs a Visa and a Work Permit?
In many countries, employees will need both:
- A visa (or entry clearance) to travel to and enter the country
- A work permit or work-inclusive residence permit to actually perform any work
A typical sequence looks like this:
- The employer issues a formal offer and contract
- The employer sponsors the work authorization application
- Authorities review eligibility
The government may also require labor market tests or additional documentation to determine eligibility.
Once work authorization is approved (or in parallel), the employee applies for an appropriate visa at a consulate or embassy using the approval as documentation. The employee then enters the country on the visa. Upon arrival, they may need to register their address, undergo medical checks or biometric screenings, and collect a physical residence or work card.
Countries that typically require both a visa and a separate work permit or authorization include Germany, Australia, the United Kingdom, and the United Arab Emirates.
This two-step structure is especially common when relocating someone to a country where they do not currently live. Because the details are so jurisdiction-specific, many employers lean on immigration counsel or Employer of Record (EOR) partners when planning relocations.
Situations Where One Document Is Enough
There are scenarios where one document (or status) covers both stay and work — but they're narrower and more nuanced than they look at first glance.
Single-permit or “work visa” systems: Some countries use a single-permit system that combines residence and work authorization into one process. In practice, employees often refer to this as “my work visa,” even though it may involve two linked steps: an entry visa issued before arrival, followed by a residence or work card issued locally after arrival. The key point is that permission to enter and permission to work are handled together as part of a single, integrated system.
Short-term business travel: Business visitor visas generally stipulate permitted activities (meetings, negotiations, conferences, and classroom training) and prohibited activities (hands-on delivery of services to local customers and direct production work).
Even when a separate work permit isn't required for a short visit, it's still governed by visa category limits. Sending someone to help out on-site for a week can blur the line between a business visit and unauthorized employment more quickly than many teams expect.
Digital nomad visas: Digital nomad visas have become a popular way for remote workers to live in one country while working for employers based elsewhere. A digital nomad visa can make it legal for someone to live and work remotely from another country, but it typically does not authorize them to be employed by a local employer based in that country.
Working without proper authorization can result in significant consequences for both employees and employers, including fines, removal or deportation, bars on future visa applications, and loss of eligibility to sponsor workers in the future.
International Work Myths, Debunked
There are some common misconceptions that can trip up employers and workers when it comes to immigration regulations:
- “If they have a visa, they can work.” Many visas explicitly prohibit employment. You need to confirm whether the visa category includes working rights, and under what conditions.
- “Contractors don't need work permits.” Calling someone a contractor doesn't automatically mean they don’t need a work permit. Authorities generally care about where the work is performed and the level of control the employer exerts over the contractor. A contractor working on-site in another country may still need authorization.
- “Short assignments are exempt from authorization.” Some countries require work authorization even for brief paid projects. Sending an employee abroad for only two weeks (or even two days) could trigger legal repercussions.
- “Any local entity can sponsor a work permit.” Sponsors often need to meet specific criteria, including being properly registered, having a clean compliance record, and demonstrating their ability to pay required salaries.
How Employers Can Prepare for Visa and Work Permit Applications
Supporting an employee through the visa and work permit process is a multi-step project. It's rarely a quick form you can file a week before a start date.
You'll typically need to manage:
- Sponsorship documentation
- Proof of company registration
- Job descriptions
- Salary thresholds
- Proof of local recruitment efforts in some cases
- Employee documentation
- Valid passport
- CV
- Degrees/certifications
- Police clearance
- Medical certificates
- Country-specific compliance
- Occupation lists
- Quotas on workers
- Requirements to register with tax and social security authorities after arrival
Processing times vary widely, but most official guidance frames them in weeks to months, not days. Planning ahead — and treating immigration as a core part of your hiring timeline — helps avoid last-minute scrambles and rescinded offers.
How EORs Can Help Companies Employ Internationally
Sometimes, utilizing visas and work permits to relocate talent is the right strategy for your firm. However, it can also be a confusing and time-consuming process.
An EOR can provide support when you choose to relocate people, helping you understand the type of visa categories, eligibility requirements, and realistic timelines. EORs can also offer assistance with gathering the necessary documents and navigating the entire application process.
If a potential hire is already a legal resident in the country where they reside, but your company doesn’t possess a local entity, an EOR can enable your business to hire them compliantly. The EOR becomes the worker's legal employer in their home country, handling payroll, taxes, and local benefits in compliance with local law, while you manage day-to-day work, performance, and culture.
This approach can avoid immigration costs and delays when relocation isn't necessary, reduce misclassification risk, and simplify global payroll and benefits administration under one platform.
Employ an International Team With RemoFirst
RemoFirst provides visa and work permit assistance in 85+ countries, helping you navigate eligibility requirements, documentation, and timelines with expert support.
As an Employer of Record, we also enable companies to compliantly employ talent in 185+ countries without setting up local entities — starting at just $199 per employee per month. We handle payroll, taxes, benefits, and compliance so you can focus on managing your team.
Whether you're employing remote workers where they already live or relocating talent across borders, RemoFirst helps you stay compliant as laws and programs evolve.
Book a demo to see how RemoFirst can help you build a compliant international team.
