Temporary Visas vs. Permanent Visas: When to Use Each

As a global employer, you’re familiar with the complexities of global hiring, the walls you hit when trying to find the best talent wherever it lives. They aren’t dramatic, crash-into-them walls. They’re more like slow, confusing walls of bureaucracy and paperwork. Immigration categories. Local laws. Work visa types that sound similar but carry very different implications. They can make global hiring feel less sleek and inspiring, and instead a lot more complicated.

Over the next several years, global jobs are expected to grow. And we’re talking notable growth. So if you want to compete for top talent, you’ll need to understand the basics: the difference between a temporary visa and a permanent one, and how that choice affects your hiring, your compliance, and ultimately your business.

We’re going to break that down. What these visas mean. What they don’t mean. Some real-world examples. And a few things HR leaders should definitely keep in mind. It’s not the most glamorous part of hiring, but it might be one of the most important.

Defining the terms

International work visas generally fall into two categories: temporary visas for short-term work and permanent visas for long-term employment. Below are some defining characteristics and examples of both temporary and permanent visas.

What is a temporary visa?

A temporary visa allows an employee to enter and work in a country for a set period. These visas are generally for a specific job or assignment and often sponsored by the employer.

Examples of temporary visas from around the world include:

• H-1B visa in the U.S. This visa allows employers to hire international employees for specific occupations that require a unique skillset.
• Skills in Demand visa in Australia. This visa enables employers to address labor shortages by hiring skilled workers from other countries.
• Skilled Worker visa in the U.K. This visa allows employees to come and work in a specific skilled job pending a job offer from a U.K. employer and sponsorship.
• Singapore Employment Pass. This work visa allows foreign professionals to work in Singapore if they meet a minimum salary threshold and receive a job offer from a Singapore-based employer.

Each country has its own laws and regulations for work visas; however, most temporary visas are valid for a fixed period, have work-related conditions, and requirements to maintain employment and sponsorship.

What is a permanent visa?

A permanent visa allows foreign nationals to live and work indefinitely in a country. It may provide a clearer pathway to permanent residency or citizenship and offers more stability compared to temporary visas, which expire. Permanent visas aren’t typically tied to an employer, so international employees have more job flexibility.

Examples of permanent visas from around the world include:

• U.S. Green Card (Lawful Permanent Residency). This grants the green card holder authorization to live and work permanently in the United States.
• Canada Permanent Resident (PR). This allows non-Canadians to live, work, or study in Canada and gain access to healthcare and education. Holders may have the opportunity to apply for citizenship after meeting specific criteria and applying.
• EU Blue Card (with renewal pathways). This is a work and residence permit for highly-qualified non-EU citizens with a valid work contract or job offer.

Foreign nationals applying for a permanent visa typically must meet stricter eligibility criteria, such as skills, language proficiency, work history, or employer sponsorship.

Core differences: temporary vs. permanent visas

When considering temporary vs. permanent visas, there are some significant differences that may affect how you choose to apply them to your workforce:

• Duration of stay. Temporary visas are valid for a fixed period and may be renewable; permanent visas allow people to stay indefinitely.
• Work authorization. Temporary visas typically require a sponsoring employer; permanent visas give the visa holder the flexibility to work for any employer.
• Employee benefits. Permanent status may provide more access to social benefits, healthcare, or family rights than a temporary visa.
• Security of visa status. Temporary visa status depends on employment and sponsorship, and losing a job may jeopardize visa status. Permanent visas can offer more stability to the visa holder since they’re not dependent on employer sponsorship.
• Employer responsibility. Temporary visas require active employer sponsorship, and employers need to meet strict compliance requirements. Permanent visas place more responsibility on the visa holder.

When employers use each type

As a global employer, you must carefully consider when to use temporary visas vs. permanent visas, as each has its own advantages depending on your business needs and goals.

Temporary visas

Employers typically use temporary visas when:

• They have immediate openings, skills shortages, or specialized short-term assignments
• They are considering entering the labor market in a new country
• They are recruiting globally, but do not yet know if the role will be long-term or permanent
• The host country requires temporary work before a permanent pathway is available

Here’s an example: A U.S. tech company has an urgent need for a software engineer but isn’t ready to make the position permanent. They can sponsor the foreign employee on a temporary H-1B visa. If the employer wants to make the position permanent later, they can choose to sponsor the employee for a green card.

Permanent visas

Employers may use a permanent visa to:

• Make a long-term investment in a highly qualified employee or executive
• Retain skilled workers for critical roles, which will provide long-term stability
• Reduce compliance burdens associated with repeated temporary visa renewals
• Offer career mobility and relocation for globally distributed teams

Country-specific considerations

Visa considerations are highly dependent on where your business operates. If you operate in several countries, you’ll need to stay current with each country’s immigration laws to maintain compliance. Here’s a snapshot of how temporary vs. permanent visas work in countries with higher immigrant populations:

U.S.

Temporary visas: H-1B, L-1 (intra-company transfer), or O-1 (individuals with extraordinary ability)

Permanent visas: Employment-based green cards (EB-1, EB-2, or EB-3 categories)

Canada

Temporary visas: Employer-sponsored work permits

Permanent visas: Express Entry offers three programs based on economic class; Provincial Nominee Programs (PNP) offered by Canadian provinces and territories; Quebec immigration system; and family sponsorship.

U.K.

Temporary visas: Skilled Worker visa, Temporary Worker visa

Permanent visas: Indefinite Leave to Remain (ILR)

Pathways: Many temporary workers can transition to ILR after 5 years of residence

Australia/Asia-Pacific

Temporary visas: Visas for skilled in-demand workers and Business Innovation and Investment require sponsorship in Australia. The Singapore Employment Pass is a temporary visa.

Permanent visas: Skilled Independent and Skilled Nominated visas are available to qualified foreign nationals

EU

Temporary visas: National work permits or EU Blue Card, which can be temporary or permanent depending on the EU country’s rules

Permanent visas: Long-term residence permits offered by EU countries via work or family sponsorship, long-term legal residency, or investment programs

Middle East

Rules for temporary and permanent visa options in the Middle East vary by country; however, several recent developments have impacted the availability of visas in some Middle East countries. Permanent pathways to citizenship are rare.

Global employer considerations

Global workforce management is complex, so it’s crucial that HR leaders have the skills and knowledge to address issues like temporary vs. permanent visas. Consider the following tips to recruit and hire the right employees for your team:

• Compliance risk. Employers must comply with each country’s immigration regulations, including sponsorship duties, reporting, and record-keeping. Non-compliance can lead to fines, revoked sponsorship, or reputational damage.
• Employee retention. Offering permanent residency support may improve employee loyalty and retention and make you competitive with other global employers.
• Budgeting. Temporary visas and permanent visas have costs that can differ significantly. Temporary visas may incur application, legal, and renewal fees. Permanent visas usually have higher upfront costs but may reduce ongoing administrative costs.
• Strategic workforce planning. Align your needs for short- vs. long-term roles with the right visa type. For example, if you have a role that you’re consistently hiring for, it may make sense to invest in employees seeking permanent visas. For project-based roles, temporary visas may be a better option.
• Support. Partnering with an employer of record (EOR) can help you navigate visa sponsorship without establishing local entities.

Pebl takes the complex and makes it easy

Maybe your company’s growing, or maybe it’s already global. Either way, you’re starting to look beyond borders to find the right people for the job. And that’s smart. Because international hiring? It opens doors and can offer immense benefits for global employers.

Temporary visas give you flexibility. You can bring someone on for a project, a season, a short-term role. Permanent visas, on the other hand, give you staying power—stability and long-term growth.

But the complexities of navigating immigration laws and compliance obligations can be overwhelming. They’re a mix of shifting regulations, rules, and paperwork that feels like they were designed specifically to confuse you. It can be tempting to just forego visa sponsorship altogether. That’s an option. But you could miss out on great talent that benefits your business.

Thankfully, you won’t miss out on talent when you partner with Pebl. Through our Employer of Record (EOR) service, we handle visa sponsorship for you. You still have access to a pool of highly qualified global talent, but the sponsorship, compliance, and paperwork—knowing every law in every country? We handle that for you.

Your next great employee may live across the world, and hiring them may be easier than you think.

Connect with the experts at Pebl to streamline your global hiring strategy. To maximize your time and build a global dream team.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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