How much does it cost to use an Employer of Record (EOR) in the Caucasus Region?

Table of contents:

• Introduction: Why hiring in the Caucasus doesn't have to break your budget

• What exactly is included in an EOR fee in the Caucasus?

• Comparing EOR pricing structures: Flat rate vs % of salary

• Salary + taxes + EOR fee = Your total monthly hiring cost in the Caucasus Region

• Optional add-ons: Benefits, equipment, workspace in the Caucasus

• Is EOR cheaper than setting up a local entity in the Caucasus?

• Common myths about EOR pricing in the Caucasus Region (and why they're wrong)

• Risks of skipping compliance: What happens if you avoid an EOR in the Caucasus Region?

• TL;DR: Why EOR cost in the Caucasus Region is a strategic investment (not just an expense)

Introduction: Why hiring in the Caucasus doesn't have to break your budget

Hiring internationally sounds great until someone drops the C-word: compliance.

Then the coffee goes cold, your heart rate goes up, and your friendly finance guy, who usually just asks politely if you could submit your expenses before the heat death of the universe, starts frantically googling "Azerbaijani tax withholding rates."

You probably didn't get into your business dreaming of deciphering Armenian labor law PDFs at 2 a.m. (and if you did, I’m genuinely worried about you).

But here's the thing: expanding your team into the Caucasus, whether it’s Georgia, Armenia, or Azerbaijan, doesn't need to turn into a financial nightmare or a Kafkaesque trial by paperwork.

And no, we’re not talking about sketchy loopholes or praying the local authorities don’t notice.

We're talking about actually hiring great talent, with actual contracts, actual payroll, and actual compliance, all without setting fire to your budget spreadsheet.

Because contrary to what some LinkedIn gurus might have you believe, hiring abroad doesn’t require you to master three different alphabets, decipher multiple tax codes, or pay a law firm just to tell you “maybe.”

All you need is the right model.

In this article, we'll give you a breakdown of exactly what it costs to use an Employer of Record (EOR) in the Caucasus region. From salaries to fees to unexpected expenses (that you should absolutely expect), you’ll walk away knowing exactly how much you’re paying, and what you're getting for every penny.

No thesauruses required.

What exactly is included in an EOR fee in the Caucasus?

You’d think paying for an Employer of Record means... well, employing someone legally. And sure, that’s part of it. But if your idea of EOR services stops at “we’ll file the paperwork,” you’re about to be pleasantly surprised.

Let’s break it down, without sounding like a 400-page legal manual.

Talent verification & compliant contracting

You’ve found your perfect hire. Great. Now, are you ready to draft a locally compliant employment agreement in Georgian, Armenian, or Azerbaijani without Google Translate embarrassing you in front of your candidate? No? That’s what we’re here for.

We verify your candidate, make sure they’re legally eligible for employment, and prepare local, rock-solid contracts. So you can sleep knowing you’re not unintentionally offering someone three months’ paid leave and a goat.

Onboarding without migraines

Tax registration. Benefits enrollment. Payroll setup. Normally, this means three government portals, a fax machine (still), and some mysterious approval from a guy named Aram who only works Tuesdays.

With Team Up, it’s all included. You get one onboarding process that doesn’t feel like walking blindfolded through a compliance minefield.

Payroll, taxes & compliance on autopilot

You pay us. We pay your employee. Then we send the taxes to the right place, on time, every month.

No penalties. No paperwork nightmares. No surprise visits from the Georgian Revenue Service. (Yes, that’s a real thing.)

We also calculate payroll contributions, manage sick days, bonuses, and tax deductions—all aligned with local laws in each Caucasus country.

Benefits admin made boring (in the best way)

Health insurance? Covered. Paid leave tracking? Done. Pension contributions? Yep.

We handle it all, so you don’t have to become an expert on Armenia’s retirement system just to hire one engineer.

Ongoing HR support & local consulting

Need to terminate someone legally? Need help understanding how VAT works in Baku? We’ve got lawyers, HR specialists, and payroll pros across the region who actually speak the language, and no, not just metaphorically.

Consider us your safety net with a calculator.

Comparing EOR pricing structures: Flat rate vs % of salary

Let’s start with the obvious: transparent pricing in global hiring is about as common as a unicorn sighting in downtown Tbilisi. Everyone claims to be “simple,” “predictable,” or “cost-effective,” right before hitting you with a bill that looks like your phone number.

So let’s talk facts.

Option A: The flat rate model (aka the grown-up way to do business)

With a flat-rate model, you pay a fixed monthly fee, usually between €199 to €499 per employee, regardless of their salary. No percentage voodoo, no upsells every time your dev gets a raise.

Why smart companies love it:

• Predictable costs: You know exactly what you’re paying, month after month.

• No penalties for hiring senior talent: Whether you hire a junior QA or a senior React wizard, your EOR fee stays the same.

• Easy to scale: Planning your budget? Add headcount without doing algebra.

It’s the model we use at Team Up. Why? Because CFOs don’t like surprises. And neither do we.

Option B: The percentage-based pricing model (aka "How much again?!")

This one looks friendlier until you hire someone good.

You pay 10% to 15% of the employee’s gross salary as the EOR fee. That means if you hire someone at €4,000/month, you’re suddenly paying an extra €400–€600 on top. Every. Single. Month.

The catch? The more experienced your hire, the more expensive your “compliance” becomes. Not because it’s harder to run payroll for them. Just… because.

It’s like tipping your accountant based on how much you made this year. Doesn’t make sense? Exactly.

Salary + taxes + EOR fee = Your total monthly hiring cost in the Caucasus Region

If you’ve ever opened an international payroll invoice and felt like you were reading the Dead Sea Scrolls, you’re not alone.

Hiring globally can feel like playing salary Jenga, stacking base pay, tax laws, and benefits until something collapses. But that’s exactly what an EOR is built to simplify.

Let’s break it down like a payroll accountant with a grudge against vague pricing.

Salary: What your employee actually takes home

In Georgia, Armenia, or Azerbaijan, tech salaries vary, sure. But you’re still looking at a mid-level developer earning anywhere from €1,200 to €2,500 per month gross, depending on experience and city.

That’s already a 40–60% cost reduction compared to hiring in Western Europe or the U.S. And we’re not talking about junior interns—we’re talking senior backend engineers, designers, product leads, you know, the people who get stuff done.

Taxes: The unavoidable alphabet soup

• Let’s use Income tax: Flat 20%

• Pension fund: 2% employer + 2% employee

• Social security: Not applicable for employees

• VAT & corporate tax: Your EOR handles it, so you don’t get ambushed

In n looking at €6,000+ for the same role, and suddenly the Caucasus looks like more than a scenic backdrop—it’s a hiring advantage.

Optional add-ons: Benefits, equipment, workspace in the Caucasus

Hiring through an EOR doesn’t mean you have to settle for bare bones. You’re not running a volunteer program. These are real jobs, with real people, and yes, real expectations.

So let’s talk perks.

No, not the “pizza Fridays” kind. We’re talking health coverage, high-performing hardware, and actual desks in actual buildings, because even remote-first teams sometimes like chairs that swivel.

Health insurance (starting from €49/month)

In Georgia, Armenia, and Azerbaijan, state healthcare exists, but it’s not exactly winning international awards. If you’re hiring senior talent, they’ll expect private health coverage. And you’ll want them healthy enough to show up on Zoom without looking like they’ve been fighting a bear.

Our local plans cover doctor visits, labs, diagnostics, and emergency care. Optional dental and vision plans are also available. Your team stays productive, and you look like a company that cares.

Which are you… right?

Gym & wellness perks (starting from €49/month)

Listen, no one wants to lose their senior QA engineer to a slipped disc from bad posture and startup stress. Our wellness add-ons give your team access to the best gyms, yoga centers, and physiotherapy clinics in Tbilisi, Yerevan, or Baku.

It’s also a nice recruiting edge. “We’ll pay for your gym” plays better than “We’ll pay you in exposure.”

Equipment leasing (from €69/month)

Want your team to actually have the gear they need without dipping into your hardware fund for the next decade? We lease high-end MacBooks, ThinkPads, monitors, webcams, keyboards, all insured and swappable.

And we don’t skimp. This isn’t your uncle’s dusty HP laptop from 2009. These are work-ready machines delivered to your hire’s door, with zero stress on your end.

Workspace options (flex desks from €150/month)

Yes, remote work is great. But sometimes people want a place where the Wi-Fi doesn’t drop out every time someone microwaves soup. We offer:

• Flex desks (€150/month) for freelancers and floaters

• Dedicated desks (€250/month) for committed individuals

• Private offices (from €1250/month) for full teams who hate Slack calls as much as you do

All spaces come with coffee, community, and a clean bathroom. Which is more than we can say for your average Airbnb “home office.”

Build a benefits stack that your hires won’t ghost

Optional doesn’t mean unnecessary. These perks help you compete for top talent, not just hire them, but actually keep them.

And with Team Up, you don’t have to juggle five vendors, five invoices, or five surprise calls from “your guy” in logistics. We handle it all.

So when we say full-service EOR in the Caucasus, we mean it.

Ready to build a setup your remote team will brag about?

Is EOR cheaper than setting up a local entity in the Caucasus?

Let’s break this down like a CFO on a budget call.

Hiring in Georgia, Armenia, or Azerbaijan sounds exciting until the reality of local bureaucracy hits like a surprise audit. You want to build a team, not navigate 30 pages of legalese about share capital and toilet inspection certificates.

So, how does traditional entity setup stack up against using an Employer of Record (EOR)?

Here’s the damage:

The hidden price tag of setting up your own company

Setup and legal fees: €2,000–€5,000+

First, you’ll need local legal counsel. Then registration fees. Then translations. Then notarizations. Then apostilles. Then, somehow, you’re on your fifth Zoom with a local lawyer whose English is fine, but whose PowerPoint is not.

Office lease requirement (yes, even if you’re remote)

You might love the remote-first dream. Local tax authorities? Not so much. In most Caucasus countries, registering a business still requires a physical address and a long-term lease. That's cash down the drain if your team doesn’t plan to commute.

Monthly compliance & overhead: €300–€1,000+

Let’s say you’ve set up shop. Congrats. Now you’ll need a local accountant, legal representative, and someone who can explain what form D-1938-B even means. Monthly.

Annual audits & tax reporting

Hope your team likes paperwork. Because annual audits, quarterly declarations, and compliance filings are baked into the cake. Get one line item wrong and… well, don’t ask what the fine is. It’s not small.

Now, compare that to using Team Up as your EOR

• €199/month flat fee per employee

• No setup costs

• No local leases

• No compliance chaos

• Start hiring this week, not next fiscal year

You get the team. We handle the rest.

Common myths about EOR pricing in the Caucasus Region (and why they’re wrong)

You know what they say about assumptions: they’re great for bloating your budget and delaying your hiring plans by six months.

And when it comes to using an Employer of Record (EOR) provider in the Caucasus Region, there are a lot of assumptions floating around. Some of them come from outdated forums. Others are whispered by that one consultant who still thinks you need an office in Yerevan to hire someone in Yerevan.

Let’s sort fact from fiction.

Myth # 1: “EORs are only for big tech companies hiring overseas.”

Nope.

Actually, EORs are perfect for small to mid-sized teams, especially if you’re hiring your first engineer in Georgia, testing a product team in Armenia, or onboarding a support specialist in Azerbaijan. You don’t need a 200-person headcount to benefit.

Myth # 2: “A flat fee means hidden costs later.”

We get it, flat fees sound like someone’s hiding the real bill under the table.

But with Team Up, €199/month per employee means just that. No onboarding surcharge. No “compliance maintenance” line item. No local partner kickbacks buried in page six of your invoice.

It covers legal employment, taxes, contracts, payroll, and local compliance—so you don’t have to.

Myth # 3: “I still need a local office to stay compliant.”

Not if you're working with a proper EOR.

Local tax authorities in the Caucasus Region may require physical presence for entity owners. But when you hire through an EOR in Georgia or Armenia, or Azerbaijan, we become the legal employer. You get full compliance, without signing a 12-month lease in Baku.

Myth # 4: “It’s more expensive than hiring contractors directly.”

Short-term? Maybe.

Long-term? Not even close.

Hiring contractors without proper contracts or tax reporting in the Caucasus is like driving a car with fake license plates; it works until it doesn’t. And when authorities get involved, you’ll wish you paid the €199.

Besides, contractors don’t come with:

• Payroll tax compliance

• Visa support

• Equipment logistics

• Local benefits

With an EOR, all of it’s baked in.

Risks of skipping compliance: What happens if you avoid an EOR in the Caucasus Region?

Let’s say you’re trying to cut corners. Hire a developer in Tbilisi as a “freelancer.” Maybe you wire some money through Wise, call it a day, and hope nobody asks questions.

Now picture this:

Your “contractor” in Georgia posts a photo on LinkedIn celebrating their one-year work anniversary. With your company tagged.

Meanwhile, your accountant can’t explain why 25% of your “vendors” only work 9 to 5, use your Slack, and attend your product meetings.

Welcome to the Caucasus, where labor laws are real, inspections aren’t just paperwork, and ignoring compliance can end in tax penalties, immigration red flags, or a public mess no founder wants to deal with.

Let’s break it down.

Legal compliance in Georgia might look startup-friendly (because it is), but hiring workers as contractors without local contracts or taxes? That’s called misclassification, and the Revenue Service doesn’t love it.

Legal compliance in Armenia enforces employee benefits, pension contributions, and income tax reporting. If you hire files taxes like an employee, but you treat them like a contractor? That’s your problem now.

Legal compliance in Azerbaijan has a social insurance requirement. A non-compliant hire can trigger audits, especially if they’re publicly representing your company.

In short, skipping compliance in the Caucasus Region means putting your entire hiring strategy and your wallet at risk.

And the worst part?

You don’t find out you messed up until it’s too late.

When your hire wants maternity leave. Or visa sponsorship.

When local authorities send you a charming letter, written in a language your lawyer doesn’t speak.

With an Employer of Record in the Caucasus Region, this never happens.

You get:

• Locally compliant employment from day one

• Payroll that plays nice with Georgian, Armenian, or Azerbaijani tax codes

• Employee benefits that actually work locally

• Work permits (when needed) without the bureaucratic acrobatics

In other words: less drama, more focus.

Want to stay out of trouble and still build your dream team across the Caucasus?

TL;DR: Why EOR cost in the Caucasus Region is a strategic investment (not just an expense)

Look, you’re not paying for a spreadsheet and a couple of legal templates. You’re paying for speed, security, and sanity.

An Employer of Record in the Caucasus Region, whether you’re hiring in Georgia, Armenia, or Azerbaijan, isn’t just about cost control. It’s about skipping red tape, avoiding tax mistakes, and building your team without tripping legal landmines.

You’re getting:

• Compliant, local employment without setting up a local entity

• Fixed monthly fees (no surprise surcharges or mystery service charges)

• Payroll, benefits, taxes, and contracts, all handled

• Room to grow fast, pause, or pivot as needed

Meanwhile, setting up your own company? That means shelling out thousands in legal fees, monthly admin costs, audits, and time. Lots of time.

In short: EOR isn’t the “cheap” route; it’s the smart one.

If you’re planning to hire in the Caucasus, don’t wing it.

Do it legally, do it fast, and do it with a partner who’s built for this.

Team Up offers EOR services across Georgia, Armenia, and Azerbaijan for a flat monthly fee.

Want to see what it’ll cost you?