The way companies build teams has changed dramatically. Gone are the days when you were limited to hiring within a 50-mile radius of your headquarters. Today, businesses of all sizes are discovering the power of remote work—and Latin America has emerged as one of the most attractive regions for building distributed teams.

But here’s the challenge: finding great talent is only half the battle. The other half involves navigating complex employment laws, tax regulations, and compliance requirements in each country. That’s where Roots comes in.

Why Latin America is a goldmine for remote talent

Latin America has become a preferred destination for US and European companies looking to expand their remote workforce—and for good reason.

Time zone alignment that works

When you hire in Latin America, you’re working with time zones that overlap with North American business hours. Teams in Mexico, Colombia, and Peru share similar time zones with the US, while Argentina and Brazil are only a few hours ahead. This means real-time collaboration without the 12-hour gaps you’d face hiring in Asia.

A growing pool of skilled professionals

Countries like Argentina, Brazil, Colombia, and Mexico are producing world-class talent across technology, marketing, and creative fields. In fact, Argentina has the highest English proficiency rating in Latin America and is home to 40% of the region’s unicorn companies.

The numbers tell the story: over 60% of US-based tech companies now hire remotely in Latin America, and countries like Colombia and Argentina have seen a 200% increase in contractor hires since 2020.

Cost-effective without compromising quality

Hiring in Latin America offers significant cost advantages compared to US or European salaries, but without sacrificing quality. Companies regularly achieve 40% or more in operational cost savings while maintaining US productivity standards.

Cultural affinity and business practices

Latin American professionals share strong cultural alignment with Western business practices, making integration into existing teams smoother. The region’s work culture values relationships, trust, and personal connection—qualities that translate well into collaborative remote environments.

How Roots simplifies hiring in Latin America

Roots is more than just a service provider—we’re your strategic partner for building remote teams across Latin America. Whether you need to hire full-time employees or engage independent contractors, we provide the infrastructure and expertise to make it happen seamlessly.

Employer of record (EOR): Your gateway to compliant full-time hiring

If you want to hire full-time employees in Latin America but don’t have a local legal entity, an Employer of Record (EOR) is your solution.

With our EOR service, Roots becomes the legal employer for your talent in the target country. We handle everything:

• Payroll and tax withholdings
• Benefits administration
• Local compliance and labor laws
• Contracts and onboarding
• Risk management

You retain full day-to-day control over your employees’ work and integrate them into your company culture. This is the fastest and most secure way to hire full-time employees internationally without establishing a legal entity.

Setting up a legal entity in countries like Brazil, Mexico, or Argentina can take months and cost tens of thousands of dollars. With an EOR, you can have your employment structure in place within days and onboard new hires in as little as one to two weeks.

Contractor management: Flexible talent with full compliance

Sometimes you need specialized expertise for a specific project, or you want to test working with someone before committing to a full-time hire. That’s where our contractor solutions come in.

Contractor of Record (COR): We ensure your engagements with freelancers and independent contractors are fully compliant. Worker misclassification is a serious risk that can lead to fines, penalties, and legal disputes. We manage contracts, payments, and local tax obligations, protecting you from these liabilities while you leverage flexible talent.

Direct Contractor: If you’ve already found a great contractor and have a solid agreement in place, we handle the financial side—secure international payments, multi-currency payroll, invoice management, and local tax compliance.

More than paperwork: real local insight

What truly sets Roots apart is our profound, on-the-ground knowledge of key Latin American markets. We have standout services in Mexico, Colombia, Argentina, Brazil, and Uruguay, and we understand the nuances of each country’s regulations, compensation norms, and business culture.

Every country in Latin America has its own employment rules. In Mexico, for example, a 2021 law effectively bans outsourcing for core activities—meaning you need expert guidance to navigate compliance. In Argentina, employers must maintain a “labor book” and pay a mandatory 13th salary. In Brazil, you’re dealing with one of the world’s most complex tax systems.

Roots understands these local complexities so you don’t have to.

Benefits of hiring remotely through Roots

Whether you choose an EOR or contractor model, hiring through Roots offers distinct advantages.

Speed and agility

Skip the months of legal entity setup. We can have your employment structure ready in days, not months, so you can start building your team immediately.

Full legal compliance

We handle all the complexities: contracts, payroll, tax withholding, benefits, terminations, and statutory filings. You operate with 100% peace of mind knowing your hiring is fully compliant with local laws.

Cost efficiency

You only pay for the employees you have, with no fixed overhead tied to unused infrastructure. Scale up or down as your business needs change without the sunk costs of maintaining local entities.

Risk mitigation

Worker misclassification can lead to severe penalties. Our EOR and COR services ensure every worker is classified correctly, protecting you from legal and financial risks.

Focus on what matters

By handling all administrative and compliance burdens, Roots frees you to focus on what you do best: integrating talent, driving innovation, and growing your business.

Build your Latin American team with confidence

Latin America offers an incredible opportunity to access world-class talent at competitive costs. The region’s skilled professionals, time zone alignment, and cultural affinity make it a natural choice for remote team building.

But international hiring doesn’t have to be complicated. With Roots as your partner, you can navigate the complexities of local labor laws, tax regulations, and compliance requirements with ease. Whether you choose our Employer of Record service for full-time employees or our Contractor management solutions for flexible talent, we provide the infrastructure and expertise to help you succeed.

Hire talent in Latin America with confidence

Ready to build your remote team in Latin America? Roots handles compliance, payroll, and contracts so you can focus on growth. Let’s talk about your hiring needs.

Contact us