EOR Radar @EORRadar
Hiring in Mexico🇲🇽& Portugal🇵🇹without an entity: EOR fees, contractor risk, rule changes. Sources named in each post. DMs open. Joined October 2026-
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Hiring sales in Mexico through an EOR fixes the employment side, not the tax side. If that rep habitually closes deals for you, Mexico's Income Tax Law, Art. 2, can treat your company as having a permanent establishment there.
You hire an engineer in Lisbon through an EOR. By week 10 it isn't working, so you plan to end it in the trial period. Nobody sent the trial terms in writing in week one, though. Portugal's Labour Code, Art. 111, then presumes there was no trial period. Get that letter by day 7.
Deel lists EOR at $599 a month. Playroll lists from $399, plus a refundable deposit of one month's salary. On a $4,000 monthly salary, Playroll saves you $2,400 a year and holds $4,000 of your cash from day one. Deel's pricing page doesn't mention a deposit. Ask before you sign.
Mexican hires will ask about utilidades, the legal profit share. With an EOR, the EOR is the employer, so it comes out of the EOR's Mexican profit, not yours. That can be small. SAT's PTU guide caps it at three months' pay or the 3-year average. Say so in the offer, not in May.
The cheap Mexico provider is the one to check hardest. Since the 2021 reform, LFT Art. 14 makes you jointly liable if the firm you contract fails its own workers. Their low fee stops mattering the month their payroll bounces. What do you ask a Mexico vendor for before signing?
A Portugal offer of €3,000 a month is not €36,000 a year. Labour Code Arts. 263 and 264 add a Christmas and a holiday subsídio, so it's 14 payments, and Segurança Social's 23.75% employer rate hits all of them. Did your Portugal budget assume 12 or 14?
Mexico salary is the easy line. Aguinaldo, 15+ days' pay before Dec 20 (LFT Art. 87). INFONAVIT, 5% of registered salary, on the employer, per IMSS. PTU, 10% of the firm's taxable income, shared with staff, per SAT. IMSS quotas on top.
And ACT doesn't need a lawsuit to start. Under Lei 55/2017 an inspector gives you 10 days to regularize, then it goes to the prosecutor. Put them on payroll instead (EOR or own entity) and budget Segurança Social's published 23.75% employer rate on top.
Per Portugal's Labour Code Art. 12: your premises or equipment, hours you set, a fixed sum paid on a schedule. Some of these and the law presumes an employment contract. A Lisbon "freelancer" on your laptop and your calendar is most of the way there.
Sources: LFT (Art. 21): diputados.gob.mx/LeyesBiblio/pd… Remote, Mexico: remote.com/country-explor… Deel, Mexico: deel.com/hiring/employe… STPS REPSE: repse.stps.gob.mx
Before signing an EOR there, ask how it squares with the 2021 reform. Subcontracting of personnel is banned. Specialized services need STPS REPSE registration. The register is public, so search the provider's name yourself.
In Mexico the route that bites is the contractor one. LFT Art. 21 presumes an employment relationship between whoever does the personal work and whoever receives it. The law starts from the assumption that you're the employer.
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