The remote work boom didn’t just happen in North America and Europe.
By 2023, over 80% of Latin American companies had adopted hybrid or fully remote policies.
But here’s the thing – not all countries are created equal when it comes to building remote teams.
Some have incredible tech talent but complicated labor laws. Others have great time zone overlap but smaller talent pools. A few hit the sweet spot on almost everything.
I’ve spent the last year talking to hundreds of employers who’ve built teams across Latin America.
This guide breaks down the top seven countries where US, UK, and Australian companies are hiring remote workers in 2026.
Mexico
If you’re in the US and want remote talent that feels local, Mexico is probably your answer.
Mexico City, Guadalajara, Monterrey – these aren’t just big cities. They’re tech hubs with coworking spaces, startup accelerators, and thousands of developers, designers, and support professionals.
What Mexico does well:
Minimal time difference if you’re anywhere in the US. Your team can start at 9 AM your time, attend your afternoon meetings, and wrap up when you do.
English proficiency in business and tech roles is solid. The professionals working with international clients communicate clearly.
The logistics are straightforward. Bank transfers via SPEI, invoices with RFC (Mexican tax ID), and relatively simple contractor relationships.
Tecnológico de Monterrey (ITESM), UNAM, and IPN produce strong engineering and computer science graduates.
Where Mexico gets tricky:
Labor laws have tightened around outsourcing. If you treat a contractor like an employee (fixed schedule, direct control over how they work, providing equipment), Mexican authorities might reclassify the relationship. That means retroactive benefits, taxes, and potential fines.
For long-term full-time roles where you’re essentially managing someone as staff? Consider an Employer of Record.
Colombia
Colombia has quietly become one of the strongest hiring markets in Latin America.
Bogotá and Medellín are full of mid-level developers, designers, and customer experience teams who want to work with international companies.
Why employers choose Colombia:
Eastern time zone alignment if you’re in the US. Colombian teams match your hours almost perfectly.
The cost-to-quality ratio is excellent. You’re getting strong technical skills at rates that make sense for both sides.
Government support for tech. Colombia has invested in startup ecosystems and tech training programs.
Universidad de los Andes and Universidad Nacional de Colombia feed the local tech ecosystem.
What to know:
There’s more competition now. Local engineers are also targeting US and Canadian roles. Your offer needs to be regionally competitive, not just “better than local options.”
Contractor invoices in Colombia are subject to withholding tax (retefuente) around 10-11%, plus 19% VAT on some services. Many companies use payment platforms like Wise to handle this automatically.
Colombian professionals often value relationship building before diving into work. A few intro calls where you actually get to know each other? That goes a long way.
Brazil
Brazil has the biggest economy in Latin America and the biggest talent pool.
If you need senior engineers, data scientists, product managers, or financial services professionals, Brazil has them in volume.
What makes Brazil strong:
Huge pool of mid to senior-level engineers who are comfortable with English and global codebases. You’re not limited to entry-level talent.
Universities like USP and UNICAMP produce a steady flow of technical talent. Add in bootcamps and private training programs, and you have thousands of developers entering the market each year.
Why Brazil is complicated:
Brazilian labor law heavily favors workers. Misclassification cases almost always end with the worker winning retroactive benefits.
Remote work is covered in the labor code (sections 75-A to 75-E). You need written agreements that define remote activities, equipment responsibilities, cost reimbursements, and health-and-safety instructions.
Argentina
Argentina has one of the best-educated workforces in Latin America.
The technical education is strong. English proficiency in tech is high. Argentine developers, designers, and product people have a long tradition of working with US and European clients.
Why employers like Argentina:
Excellent technical skills across software development, product, design, and creative roles. You’ll find senior-level talent who can handle complex projects.
Very competitive rates due to economic instability and currency devaluation. This is a double-edged sword: good for your budget, volatile for workers.
The tension you need to understand:
Many Argentine workers are frustrated by companies that pay “Latin American rates” while demanding US-level work and availability.
Many Argentine freelancers prefer to be paid in USD or via stablecoins because of local capital controls and high inflation.
Service providers often charge 21% VAT and may be subject to gross income tax (IIBB) of roughly 3-5% by province.
Chile
Chile is the stable option in Latin America.
Strong economy. Pro-innovation government policies. High-quality education and good English in technical segments.
What Chile offers:
Stability for long-term hiring. If you’re building a team you want to keep for years, Chile’s political and economic environment makes that easier.
Strong engineering, IT, and data-driven roles. Chilean professionals are well-trained and experienced with international clients.
The trade-off:
Costs are higher than in Colombia or Peru. You’re paying more, but you’re getting stability and quality.
Contractors use RUT (tax ID) and issue taxable invoices. Local VAT (IVA) applies to many services.
Costa Rica and Peru
Costa Rica is known for “Pura Vida” culture, political stability, and being digital-nomad-friendly. The government recently reformed rules to allow employees to telework from abroad under specific agreements.
Peru is attracting growing interest for tech talent and nearshore support roles. The talent pool is smaller than Mexico or Colombia, but the quality is there. Contractor payments typically involve income tax withholding of 8-10% and 18% VAT (IGV) on services.
If Mexico, Colombia, and Brazil are too crowded or too expensive, Costa Rica and Peru offer solid alternatives with growing talent pools.
How to Actually Hire: Legal Models That Work
You have three main options for hiring in Latin America.
Job Platforms like HireTalent.LAT that caters specifically to LATAM let’s you post detailed job listings with custom application questions (text, video, and voice responses). The AI-powered applicant analysis ranks top candidates, which saves you hours of manual screening.
Employer of Record (EOR) or Agent of Record (AOR) means a local provider hires the worker on your behalf, runs payroll, handles tax and social security, and ensures benefits meet local law. This is recommended for Brazil, Mexico, and Colombia when you want long-term, full-time employees.
Your own legal entity is only worth it once you reach a sizable headcount in one country. Setup can take 2-16 weeks and requires ongoing legal, tax, and HR work.
Your Step-by-Step Hiring Playbook
Pick one country to start with. Most hiring guides recommend Mexico, Colombia, or Brazil depending on your budget and language needs. Don’t try to hire across multiple countries at once.
Choose a legal model. Contractor for short, project-based work. EOR or local entity for full-time multi-year roles.
Create a clear, localized job description. Include time zone expectations, language requirements, tools, and compensation benchmarks for the region.
Run a structured, simple process. 1-2 interviews plus a small paid test task. Respect candidates’ time and communicate decisions quickly. The built-in messaging system makes it easy to communicate with applicants throughout the process.
Set explicit expectations. Communication, hours, and holidays should be clear in the contract and onboarding process.
Review tax and withholding requirements. Set up payment systems (bank transfer, Wise, Deel) that comply with local invoicing rules. Some platforms integrate with Wise for automated international payments, which eliminates manual payment workflows.
What This All Means for You
Latin America isn’t a shortcut to cheap labor.
It’s a region full of talented professionals who want to work with international companies, collaborate in real time, and build long-term careers.
If you approach this with respect, pay fair rates, and handle the legal stuff properly? You’ll build incredible teams.
The opportunity is real. The talent is there. The infrastructure works.
Now you just need to pick the right country and start hiring.
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