Over 60% of large U.S. companies now hire from three or more Latin American countries, and remote work participation in the region grew from just 3% in 2019 to 30% by 2023. The conversation around hiring remote talent from Latin America has exploded, but most small business owners still have basic questions about how this actually works and what it really costs.
This guide answers those questions directly. You’ll learn what hiring from Latin America actually means, how it differs from other international hiring approaches, what the real costs look like, and how to handle the legal and practical details that trip up most first-time employers. Think of this as hiring a remote worker from another U.S. state, except they happen to live in Mexico City or Bogotá.
The result? Access to skilled professionals in operations, customer service, marketing, bookkeeping, and administrative roles at roughly 70% lower payroll costs than domestic hires. More importantly, you’re tapping into talent pools that have been preparing specifically to work with U.S. companies for over two decades.
What LATAM Remote Hiring Actually Means
Latin America has been building its remote work infrastructure much longer than most people realize. This approach has developed for over 20 years, and what changed recently is the scale and sophistication of available talent.
You’re hiring skilled professionals who work remotely from their home countries while contributing to your U.S.-based business. These workers stay in Colombia, Mexico, Costa Rica, or other Latin American countries. No visas. No relocation. No immigration paperwork. They work normal business hours that overlap with yours because of favorable time zones.
This differs completely from bringing workers to the United States or setting up manufacturing operations overseas. You’re building a distributed team where some members happen to work from different countries.
Numbers You Should Know:
- Remote workforce growth: LATAM remote workers increased from 3% of the workforce in 2019 to 30% by 2023
- Cost savings: Companies typically save 70% on payroll costs compared to U.S. hires
- Hiring speed: Job offers are accepted within 1-2 weeks on average 1-2 weeks
- Market growth: Remote hiring from Latin America surged 286% in the second half of 2021
Where companies once primarily hired for basic customer service roles, today’s LATAM talent market includes operations managers, marketing coordinators, executive assistants, bookkeepers, customer success specialists, and virtually every white-collar support role you can imagine.
Educational systems across Latin America have improved dramatically over the past 15 years. Universities in major cities produce graduates with strong business skills and English proficiency designed specifically for the global marketplace. Many professionals complete additional certifications and training programs to position themselves for U.S. market opportunities.
This development means you’re accessing experienced talent pools. You can find professionals who have already worked remotely for U.S. companies, understand American business culture, and have developed the communication and project management skills that make remote collaboration successful.
Understanding the Key Terms: Outsourcing, Nearshoring, and Offshoring
The terminology around international hiring gets confusing because different terms are used interchangeably when they actually mean different things.
Outsourcing traditionally refers to contracting entire business functions or processes to external companies. This could be call centers, entire IT departments, or manufacturing operations. When people hear “outsourcing,” they often picture assembly lines or large service centers.
Offshoring specifically means moving business operations to distant countries with significant time zone differences. Think of U.S. companies setting up operations in India or the Philippines, where there’s often a 12+ hour time difference that makes real-time collaboration difficult.
Nearshoring refers to moving operations to nearby countries that share similar time zones and often cultural similarities. For U.S. companies, this typically means Latin America. The proximity helps with operational efficiency in terms of time zones, business hours, and cultural alignment.
Here’s where it gets interesting. When we talk about hiring remote LATAM talent, you’ll often see this referred to as “outsourcing” even though it’s technically nearshoring. The term outsourcing has evolved. While it traditionally meant contracting entire business functions to external companies, the term now commonly describes hiring full-time employees in countries outside the U.S.
Nearshoring is becoming more popular as a term, but outsourcing remains the most widely used way to describe this strategy. In practice, both terms refer to the same thing when we’re talking about directly hiring individuals rather than contracting with third-party companies. You’re building your own team that happens to be distributed across different countries.
The Reality of Cost Savings and Fair Compensation
Let’s address the elephant in the room. Many business owners worry that paying lower salaries means exploiting workers or that lower costs automatically mean lower quality. Neither concern reflects reality.
The cost savings are real and substantial. Companies hiring from Latin America typically reduce payroll costs by approximately 70% compared to U.S. hires for equivalent roles. A customer service manager who commands $65,000 annually in the U.S. might cost $20,000-$25,000 in Latin America. An executive assistant earning $55,000 domestically might cost $18,000-$22,000.
But here’s the important part: these salaries represent premium compensation in local markets. Competitive LATAM salaries for remote U.S. work typically run 2-4 times higher than local market rates in those countries 2-4 times higher. You’re not exploiting economic disparities. You’re providing premium opportunities that significantly improve these professionals’ earning potential and career prospects.
The lower salary requirements reflect cost of living differences. An operations coordinator in Bogotá or Mexico City needs a fraction of what their San Francisco or New York counterpart requires to maintain a similar or better standard of living.
This creates a genuine win-win situation. You reduce labor costs significantly while offering competitive compensation by local standards. Your remote team members gain access to premium opportunities, career growth, and earnings that dramatically improve their quality of life.
English Proficiency and Communication Realities
One of the biggest concerns about LATAM talent centers on English language capabilities. The reality is more nuanced than simple yes-or-no answers.
The professionals you’ll be considering for remote work (college graduates, experienced workers, those specifically targeting U.S. companies) generally have business-level English proficiency. This doesn’t mean they’re native speakers. It means they can handle complex business discussions, write professional emails, understand detailed instructions, and participate effectively in meetings.
English proficiency varies significantly by individual, education level, professional experience, and location. Major tech and business hubs like Buenos Aires, Bogotá, Mexico City, and San José score highest for English proficiency among professionals targeting international work. Argentina ranks 28th globally in the EF English Proficiency Index with “High Proficiency”.
This is why screening for language skills needs to be your first filter, not your last. You want to assess English proficiency early in your process through actual conversation, not just resume claims or certificates. Have real discussions. See how they explain complex ideas, ask clarifying questions, and handle the nuanced communication that effective remote work requires.
Communication styles might differ from what you’re used to with U.S. workers. Many LATAM professionals tend to be more formal in their communication, more relationship-focused, and sometimes more indirect in how they express disagreement or concerns. These aren’t deficiencies. They’re different approaches you’ll want to understand and work with.
The key is being upfront about your English requirements and testing thoroughly during your hiring process. The professionals who have prepared for U.S. remote work generally have the language skills you need.
Time Zones: The Nearshoring Advantage
Time zone alignment gives Latin America a significant advantage over other international hiring options. Most LATAM countries fall within 0-3 hours of U.S. time zones, making real-time collaboration feel natural.
Mexico and Costa Rica share Central Time Zone (same as Chicago, Dallas, Houston). Colombia operates on Eastern Time minus one hour (same as New York minus one hour). This proximity means your team can attend morning meetings, respond to same-day requests, and work during your standard business hours.
Compare this to hiring from Asia or Eastern Europe, where you’re dealing with 8-12 hour time differences that force teams into asynchronous-only communication or require someone to work night shifts. The LATAM time zone overlap enables spontaneous conversations, quick check-ins, and urgent meetings during regular business hours on both sides.
This alignment makes LATAM talent feel much more like working with domestic remote employees than offshore teams. You can have those impromptu brainstorming sessions or address urgent issues without waiting until the next day.
The Contractor Classification Challenge You Need to Understand
When U.S. companies first explore hiring in LATAM, many assume they can simply hire everyone as independent contractors. This approach seems simpler and avoids the complexity of international employment law.
The reality is more complicated, and getting this wrong creates significant risks.
Each Latin American country has its own laws about what constitutes an employee versus an independent contractor. These laws are often more restrictive than U.S. regulations. Factors like providing equipment, setting work schedules, requiring exclusive work arrangements, or treating someone as part of your core business operations can trigger employee classification regardless of what your contract says.
Did You Know? More than 33% of small companies receive fines for making payroll mistakes, and misclassification represents one of the most common errors.
Misclassification can result in penalties, back payments for benefits, tax liabilities, and other legal complications. The risks vary by country, but they’re significant enough that many companies are moving away from contractor-only approaches.
This challenge has led to the growth of Employer of Record (EOR) services specifically designed for LATAM hiring. These companies become the legal employer in the local jurisdiction while you maintain day-to-day management of the worker. You pay a flat monthly fee to the EOR company, and they handle all local compliance, benefits, tax withholding, and employment law requirements.
Your worker receives proper employment status, benefits, and legal protections while you avoid the complexity of establishing legal entities in multiple countries. This approach provides peace of mind and reduces risk substantially.
Ready to Build Your LATAM Team?
Scale your operations with top-tier LATAM professionals at 70% average cost savings with full compliance and zero legal risk. Book a free 15-minute strategy call to discuss your specific hiring needs and get answers to your questions.
Navigating Job Boards and Finding Candidates
Finding talent in LATAM requires understanding that the job board ecosystem works differently than in the United States. LinkedIn has significant presence in major cities and among professionals targeting international work, but it’s not the dominant platform it is domestically.
Each country has its own primary job boards and professional networks. Some platforms require business registration or local tax IDs to post jobs, creating barriers for U.S. companies trying to hire directly. Others are open to international employers but may require Spanish or Portuguese language postings to get good response rates.
The talent quality and response rates vary dramatically between platforms. Some boards attract more entry-level candidates, while others focus on experienced professionals. Understanding which platforms serve which talent segments becomes important for finding the right candidates for your specific needs.
This complexity is one reason why many companies choose to work with specialized recruiting firms or Employer of Record services that already have established relationships with these platforms and understand how to target them effectively.
Common Misconceptions About LATAM Hiring
Several persistent misconceptions prevent companies from seriously considering LATAM talent. Let’s address them directly.
Misconception: Government restrictions or tariffs might apply
Some business owners worry the U.S. government might impose tariffs on services or restrict remote work arrangements with other countries. This confusion comes from mixing up goods and services. Remote work services aren’t subject to import tariffs. There are no visa requirements because the workers remain in their home countries. This is fundamentally different from importing physical goods.
Misconception: You’re taking advantage of workers by paying lower wages
The reality contradicts this concern. Competitive LATAM salaries for remote U.S. work are typically 2-4 times higher than local market rates in those countries. You’re not exploiting economic disparities. You’re providing premium opportunities that significantly improve these professionals’ earning potential and career prospects. Many LATAM remote workers earn more than local doctors, lawyers, or other high-status professions.
Misconception: Work culture differences make collaboration difficult
While cultural nuances exist, the professionals targeting U.S. remote work have specifically prepared themselves for American business environments. They understand deadline-driven cultures, direct communication expectations, and results-oriented performance metrics. The adaptation required is usually much less than companies expect. In fact, many LATAM professionals bring a strong team-first mentality that improves collaboration.
Misconception: LATAM education produces lower-quality professionals
This might have been partially true decades ago, but the educational situation has transformed dramatically. Major universities in LATAM cities now offer strong programs, many taught partially in English, with curricula designed to prepare graduates for global business environments. The professionals you’ll interview often have impressive credentials and work experience.
Misconception: LATAM hiring only works for basic roles
Today’s LATAM talent market includes every professional category you can imagine. Companies successfully hire operations directors, senior customer success managers, financial controllers, executive assistants to C-level executives, and senior marketing coordinators from LATAM markets. The sophistication and experience levels available might surprise you.
The Screening and Evaluation Process
Hiring remote LATAM talent follows many of the same principles as hiring any remote worker, but with some additional considerations. Your screening process needs to be thorough because you’re evaluating professional competence, communication capabilities, and cultural fit for remote collaboration.
English proficiency screening should happen early. This means actual conversation, not just reviewing resumes or portfolios. Schedule a video call. Have a real discussion about their experience and your role requirements. You want to assess if they can explain complex ideas clearly, ask good clarifying questions, and handle the nuanced communication that effective remote work requires.
Skills assessment works similarly to any remote hiring process. You’ll want practical demonstrations, portfolio reviews, or work samples that show actual capabilities rather than just credentials. Many LATAM professionals have impressive portfolios from previous U.S. client work, giving you good insight into their output quality and work style.
Cultural fit assessment becomes particularly important for remote work. You’re looking for professionals who can work independently, communicate proactively about problems or delays, and adapt to your company’s specific work style and values. Previous remote work experience, especially with U.S. companies, becomes a valuable indicator of likely success.
Reference checking takes on additional importance when hiring internationally. You want to verify work quality, communication effectiveness, reliability, and how well they integrated with previous remote teams. Former clients or employers can provide insights into work style and cultural adaptability that interviews alone might miss.
Be direct about your expectations during interviews. Discuss your communication preferences, working hours, project management approach, and performance expectations. The best LATAM candidates appreciate clarity and directness.
Compensation Strategy and Market Realities
Salary expectations in LATAM markets are not as standardized as they are in the United States. While U.S. salaries for specific roles in specific cities tend to fall within relatively narrow ranges, LATAM compensation can vary significantly based on experience level, English proficiency, previous U.S. client work, and individual negotiation skills.
This variability creates both opportunities and challenges. You might find exceptional talent willing to work for less than you expected. Or you might discover that the specific skills you need command premium rates that reduce your expected savings.
Numbers You Should Know:
- Average savings: Companies reduce payroll by 30-50% per role while maintaining or improving output
- Premium compensation: Remote U.S. positions pay 2-4x local market rates in LATAM countries
- Salary inflation: More than 60% of large U.S. firms hiring in three or more LATAM countries has driven wage growth in emerging markets
The key is approaching compensation with flexibility and willingness to test different ranges. You might need to adjust salary offers based on candidate quality and market response. Remember that your “competitive” rate doesn’t need to match U.S. salaries. It needs to be competitive within the LATAM market while providing fair compensation for the value delivered.
Many companies find their sweet spot at rates that represent around 70% savings over U.S. hiring while still offering premium opportunities for LATAM professionals. Start with market research for your specific role and location, then be prepared to adjust based on the candidates you’re attracting.
Technology Infrastructure and Setup Requirements
Most professionals in major LATAM cities have reliable internet connections and modern technology setups. Infrastructure development over the past decade has been substantial, particularly in business districts and areas where remote workers concentrate.
However, you shouldn’t assume every candidate has the ideal setup for your specific needs. Some roles might require particular software, high-speed internet speeds, or specific hardware configurations. Building these requirements into your screening process helps avoid problems later.
Many companies provide technology stipends or ship equipment to their LATAM team members. This investment usually pays for itself quickly through improved productivity and reduced technical issues. A $500-$800 equipment stipend to set up a proper home office is minimal compared to the ongoing salary savings.
Power reliability and internet backup solutions vary by location. Understanding your candidates’ specific situations and having contingency plans becomes important for business continuity. Ask candidates about their internet speed, backup power solutions, and workspace setup during the interview process.
The good news? Infrastructure in major LATAM cities often exceeds what you’ll find in many U.S. suburban and rural areas. Cities like Bogotá, Mexico City, and San José have invested heavily in digital infrastructure to support their growing remote work sectors.
Building Your Strategic LATAM Hiring Approach
Successful LATAM hiring requires approaching it as a strategic initiative rather than a simple cost-cutting measure. The companies that get the best results treat it as an opportunity to access new talent pools and build competitive advantages, not just reduce expenses.
Start by identifying which roles in your organization are good candidates for remote work. Consider both immediate needs and longer-term scaling plans. Operations roles, customer service, administrative support, bookkeeping, marketing coordination, and project management typically work well for LATAM hiring.
Develop your communication and management processes with remote work in mind. This benefits not just your LATAM hires but your entire distributed team. Many companies discover that the process improvements required for successful international remote work make their domestic operations more efficient as well.
Plan for a learning curve. Your first few LATAM hires will teach you valuable lessons that improve your subsequent hiring decisions. You’ll refine your screening criteria, understand what works best for your specific company culture, and develop better processes over time.
Consider your approach to compliance and legal requirements. Do you want to handle the complexity of direct hiring, or would you prefer to work with specialized service providers who can manage compliance, payroll, and legal requirements while you focus on finding and managing great talent? Most small businesses find the EOR route provides better risk management and peace of mind.
Frequently Asked Questions
What’s the difference between hiring LATAM talent and hiring any other remote worker?
The core hiring principles remain the same. You’ll need additional screening for English proficiency and cultural fit, and you’ll navigate different legal frameworks and compensation expectations. The talent quality and work output can equal or exceed domestic hires. The main practical differences involve time zones (which actually work in your favor with LATAM), legal compliance requirements, and payment processing.
How do I handle tax and legal compliance when hiring internationally?
You have two main options. First, establish legal entities in each country where you hire, which is complex and expensive. Second, work with Employer of Record services that handle all compliance for a monthly fee per employee. Most companies choose the EOR route for simplicity and risk management. The EOR becomes the legal employer while you manage the worker’s day-to-day activities.
What should I expect regarding English proficiency?
Business-level English is common among professionals targeting U.S. remote work, but proficiency varies significantly by individual. Screen this early through actual conversation rather than relying on resume claims. Expect some accent differences but generally clear professional communication. Professionals in major business hubs typically have the strongest English skills.
Can the U.S. government restrict or tax remote work arrangements with LATAM?
No. Remote services aren’t subject to import restrictions or tariffs. There are no visa requirements since workers remain in their home countries. This is fundamentally different from importing physical goods or bringing workers to the United States. Your LATAM team members are independent foreign nationals working from their home countries.
How do I know if I’m offering fair compensation?
Research market rates for your specific role and location, but expect some variability. A good approach is offering 2-4 times local market rates while still achieving around 70% savings over U.S. hiring. Be prepared to adjust based on candidate quality and market response. Working with a recruiting partner or EOR service gives you access to current market data.
What This Means for Your Business
Hiring remote LATAM talent represents a significant opportunity for companies willing to invest the time to understand how it works and develop effective processes. The talent exists, the infrastructure supports it, and the cost advantages are real and substantial.
Success requires treating this as a strategic capability to develop rather than a quick fix for high labor costs. Companies that approach LATAM hiring thoughtfully, with proper processes and realistic expectations, typically see excellent results that go beyond just cost savings. They gain access to dedicated professionals, reduce time-to-hire, and build teams that often show higher loyalty and engagement than domestic hires.
The trend toward remote work and global talent access continues accelerating. Companies that build LATAM hiring capabilities now will have significant competitive advantages as this approach becomes more mainstream over the next few years. Your competitors are already exploring these options. The question is whether you’ll lead or follow.
Hire Smart, Scale Fast.
Talent Without Borders.
About the Author
The author is Co-Founder and VP of Sales at Viva Global, a leading remote staffing agency and employer of record specializing in connecting US companies with the top 1% of Latin American talent under the motto “Talent Without Borders.” With extensive experience across Fortune 500 companies, top-rated tech firms, and early-stage startups in sales and customer success roles, the author has witnessed firsthand how recruitment processes evolve as companies scale. This diverse background has shaped a perspective on talent acquisition that now drives Viva Global’s approach to placing remote employees across various industries, helping businesses overcome hiring challenges and build thriving distributed workforces.
