TL;DR: There’s a huge difference between Latin America and U.S. salaries, but when you factor in cost of living and how common remote work has become, the value starts to even out.
Summary:
There’s always been a big pay gap between Latin America and the US. But now that remote work is more common, that gap matters in new ways. If you’re a company considering hiring remote workers from LATAM or a developer weighing your options, it’s not just about salary anymore. Cost of living, role demand, and time zone overlap all play important roles. In this article, we’ll walk through LATAM vs. U.S. salaries, real salary examples, and show what the value really looks like in 2025.
Remote job openings in Latin America grew by 286% between 2020 and 2023, showing just how much the region is becoming a key part of the remote work landscape. As global hiring becomes more common, understanding U.S. vs. Latin America wages can help you make better hiring decisions, especially if you’re growing a dev team or working with remote talent.
Still, salary numbers alone don’t tell the whole story. Time zone overlap, role demand, and cost of living in Latin America all factor in. In this article, we’ll break down 2025 salary data, highlight key trends, and show where the real value lies when building remote teams.
What’s Happening with Pay and Hiring in LATAM vs. the US
The wage gap isn’t new, but teams are looking at it differently now. Thanks to remote work, the salary comparison between Latin America and the U.S. matters more than ever. Many companies now care more about skills, time zone fit, and cost, not just hiring people nearby. At the same time, things like inflation, currency fluctuations, and minimum wage updates are shifting what salaries really mean in both regions.
More businesses are building remote-first teams with developers and engineers across Latin America. This shift has started to affect wages in some countries, but hiring costs in LATAM are still much lower than in the US. That’s why this kind of comparison is coming up more often in hiring discussions, especially for startups and fast-growing product teams.
Sources like Hire in South say companies hiring remote workers in Latin America often save up to 70% on total employment costs. And it’s not just because of lower pay. It also comes from savings on benefits, payroll taxes, and overhead.
According to a Solvedex analysis, senior software developers in the U.S. usually earn between $120,000 and $150,000 a year. In countries like Brazil, Argentina, or Colombia, senior developers typically earn around $30,000 to $50,000 annually for similar roles.
Still, wages in Latin America are changing. Governments are raising minimum wages to keep up with inflation and economic shifts. In Colombia, for example, Vialto Partners reported a 9.5% jump in the minimum salary for 2025, faster than the local inflation rate. Argentina adjusts its minimum wage several times a year. In 2024, nearly half of local employers were updating wages every month or two to stay ahead of rising prices.
So, if you compare LATAM vs U.S. salaries, the former option is still much cheaper. That’s why the region remains a smart option for companies wanting to grow without breaking the bank. It’s no surprise that more hiring managers are asking, “Is it cheaper to hire in Latin America?” For now, the answer is yes, especially when you look at the full cost of hiring. Building remote teams now can give you an edge in the long run.
Most In-Demand Roles and What They Pay
The highest-paying remote roles in Latin America align closely with those in the US. Software developers, AI and data engineers, marketing professionals, designers, and customer support specialists are all in high demand. However, the salary gap remains wide.
Here’s a salary comparison between Latin America and the US:
Role
U.S. Average Salary
LATAM Average Salary
Senior Software Developer
$120K–$150K a year
$40K–$60K a year
Full-Stack Developer
$117,880 a year
$28K–$70K a year
AI Engineer
$136K a year
$16K–$60K a year
UI/UX Designer
$84K–$94K a year
$24K–$70K a year
Data Analyst
$92K a year
$24K–$36K a year
Customer Support Lead
$81K a year
$12K–$30K a year
These ranges vary depending on the city or country, skill level, and company size, but they give a clear view of the difference between LATAM and U.S. salaries. Developers in countries like Brazil and Argentina often earn more than those in Peru or Colombia but still much less than their U.S. counterparts.
While technical roles like software development and data engineering lead the trend, many U.S. companies are also hiring marketing, design, and support talent from Latin America. These roles are remote-friendly, often time-sensitive, and benefit from strong English skills and cultural alignment.
Cost of Living: What Salaries Buy
Salaries can look very different once you factor in the cost of living. A $700 paycheck in one country might be enough for a comfortable life, while the same amount elsewhere barely covers rent. That’s why it’s important to look beyond just the numbers.
In this section, we’ll break down what average salaries actually buy in some of the most common countries where international companies hire remote talent. These include Argentina, Brazil, Colombia, Mexico, and Peru — plus the U.S. for comparison. These are among the best countries in LATAM for remote work, and understanding how far a salary goes is key when building distributed teams.
We’ll examine take-home pay and everyday expenses like housing, food, healthcare, and taxes. This gives you a clearer picture of the cost of living in Latin America and helps you set fair, competitive pay if you’re hiring across borders.
The United States
The cost of living in the United States is high compared to most Latin American countries. Daily expenses like housing, food, and healthcare take up a large part of the average budget. The data below is based on national averages from World Population Review.
- Housing: Renting a two-bedroom apartment costs about $1,150 per month on average. Monthly housing costs in the U.S. can go well beyond rent or mortgage payments. When you include expenses like maintenance, insurance, and utilities, the total can reach $1,700 or more each month. Home prices depend a lot on location, but the national median is about $274,000.
- Food: Food in the U.S. isn’t cheap. Between groceries and eating out, the average person spends about $610 a month. This includes home-cooked meals, takeout, and restaurant visits.
- Transportation: Getting around in the U.S. usually means driving, which can be costly. Gas, insurance, and car payments bring the average household’s transportation spending to around $820 per month, or close to $10,000 a year.
- Healthcare: Healthcare is one of the biggest costs, especially if you don’t have good insurance. On average, people spend about $430 a month (or $5,177 a year) on insurance, doctor visits, prescriptions, and other health-related expenses.
- Utilities: Basic utilities, like electricity, water, gas, internet, and trash, typically cost around $370 per month. The exact amount varies depending on where you live and how much you use.
Taxes: The U.S. uses a progressive income tax system. In 2025, federal rates range from 10% to 37%, depending on how much you earn. State and local sales taxes usually add approximately 6 %–7 % to most purchases.
Argentina
Daily expenses in Argentina are relatively low. But it’s important to note that inflation is high and the local economy can be unstable. So, it can highly impact how far your money actually goes. The data below is sourced from Global Passport.
- Housing: Renting a one-bedroom apartment in the city center typically costs around $400 per month, depending on the neighborhood. Outside the capital, prices are often lower ranging from $200 to nearly $300.
- Food: Groceries are affordable, with local produce and meat being inexpensive. A typical monthly grocery bill for one person is about $300 to $450. Eating out is also fairly cheap. A basic meal costs about $8.60, and dinner for two at a mid-range restaurant is around $31.
- Transportation: Transportation in cities is budget-friendly, with a $15 monthly pass covering most needs.
- Healthcare: Public healthcare is available at little or no cost, though some prefer private insurance for quicker appointments and more options. Costs for private insurance vary depending on the plan.
- Utilities: Basic utilities, such as electricity, water, and garbage, usually cost between $55 and $120 per month for a standard apartment.
Taxes: Argentina has two main types of taxes: direct and indirect. Direct taxes apply to income and profits. Individuals pay personal income tax on a sliding scale from 5% to 35%, depending on how much they earn, while companies pay a flat 30% corporate tax on profits. Indirect taxes are added to goods and services, with the most common being the value-added tax (VAT), generally at 21%.
Argentina
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Brazil
Daily expenses in Brazil vary by city but generally remain more affordable than in the US. Big cities like São Paulo and Rio de Janeiro are pricier than regional areas. The data below is drawn from Expatis.
- Housing: In large cities such as São Paulo and Brasília, rent for a one-bedroom apartment ranges from about $510 to $545, while a family-sized place can cost over $1,300. Cheaper cities like Salvador and Curitiba offer better value, but many rentals are unfurnished, so you might need an additional $500 to $900 to set up your home.
- Food: Groceries in Brazil are affordable, with monthly costs for one person ranging from $125 to $145. Eating out is also budget-friendly — local meals cost $4.50 to $6, while dinner for two at a mid-range restaurant is around $22.
- Transportation: Transportation in Brazil is low-cost. A metro or bus ride costs about $0.90, and a monthly public transit pass is typically $30 to $40. Rideshares like Uber are common, with short trips (around 5 km) costing between $3.60 and $4.50.
- Healthcare: Brazil has a free public healthcare system (SUS) available to all residents, including foreigners with visas. Private insurance plans start at around $90 per month for younger adults and range up to $220–$320 per month for older individuals. A private doctor visit usually costs $35 to $70, and dental cleanings are around $20.
- Utilities: Utility bills for an average apartment, including electricity, water, and garbage, average about $70 per month.
Taxes: Brazil has a progressive personal income tax that ranges from 0% to 27.5%, depending on income level. There is also a value-added tax (VAT) on goods and services, which can vary by state but generally falls between 17% and 19%.
Colombia
Colombia offers a good balance. Its cost of living is among the lowest in Latin America. It’s also considered one of the best countries in LATAM for remote work, thanks to its solid infrastructure and improving quality of life. The information below is based on data from Expatis.
- Housing: Renting a one-bedroom apartment in Bogotá’s city center costs around $500 to $700 per month. Outside the city center, rent typically costs less than $500 per month.
- Food: Monthly groceries for two people cost approximately $190 to $285. A restaurant lunch ranges from $3.50 to $5, while street food can be as low as $0.71. At high-end restaurants, international cuisine can cost between $15 and $30 per person, including drinks.
- Transportation: Public transport in cities like Bogotá and Medellín is cheap and reliable. A bus or metro ride costs around $0.70 to $0.75. Taxis and ride-share apps like Uber are also affordable, with short trips costing between $2 and $3.50.
- Healthcare: Colombia has good, affordable healthcare. Public insurance (EPS) costs around $28 to $35 per month, while private plans range from $70 to $190, depending on age and coverage. A doctor’s visit can be as low as $12, and major cities have high-quality hospitals.
- Utilities: Basic utilities for an apartment (electricity, water, gas, and building fees) average $70 to $120 per month. However, electricity and water bills vary by usage and district.
- Taxes: Colombia uses a progressive income tax system, with rates ranging from 0% to 39% depending on how much someone earns annually. People earning below a certain threshold pay no income tax, while higher earners pay more. There is also a 19% value-added tax (VAT) applied to most goods and services.
Mexico
When people talk about the cost of living in Latin America, Mexico often stands out as a well-balanced option. It’s one of the most popular countries in the region for remote workers and expats thanks to its modern infrastructure, cultural richness, and large English-speaking community. Here’s a breakdown of what everyday life can cost based on data from International Living.
- Housing: Housing is often your biggest expense in Mexico, but it’s still much cheaper than in the U.S. or Canada. Beach towns and popular expat cities tend to cost more, while places like Mérida or Progreso offer nice homes or rentals for under $600 a month. Even high-end condos near the beach are affordable compared to back home, and property taxes are usually under $200 a year.
- Food: Groceries in Mexico are much cheaper than in the U.S. You can get fresh produce like avocados, mangos, and tomatoes for just a few dollars per kilo. Eating out is also affordable. Street food and casual lunches cost between $4 and $8, while a nice dinner out is often under $20.
- Transportation: Getting around in Mexico is easy and affordable. Most cities are walkable, and public transport such as buses costs just 50 to 60 cents per ride. Uber and taxis are also inexpensive, usually $2 to $5 per trip.
- Healthcare: Healthcare in Mexico is high-quality and much more affordable than in the U.S. If you have legal residency, you can join the public system for as little as $350 to $850 per year, or even use INSABI for free. Private care is also budget-friendly. Seeing a specialist usually costs $50 to $75, and many pharmacies offer basic doctor visits for under $5.
- Utilities: Utility costs in Mexico depend on how much you use. If you don’t use much air conditioning or heating, your electricity bill can be as low as $3 per month. Gas for cooking and hot water usually costs around $150 to $200 per year, and drinking water is affordable, with large bottles of purified water costing about $2.50 each.
Taxes: Mexico taxes residents on their entire income, both Mexican and foreign. It has a progressive system ranging from 1.92% up to 35% based on income levels. A standard 16% VAT is built into most prices for goods and services.
Peru
Peru is one of the most affordable countries in Latin America, especially if you’re living outside of Lima’s most expensive neighborhoods. Cities like Arequipa, Cusco, and Trujillo offer great value, and even Lima can be manageable with the right planning. Many expats and remote workers find that day-to-day living costs stay low without giving up comfort. The details are based on data from TheLatinvestor and The Broke Backpacker.
- Housing: Renting a one-bedroom apartment usually costs between $200 and $400 per month. More modern or centrally located units in neighborhoods like Miraflores or San Isidro in Lima can go from $400 to $700. In smaller cities, fully furnished rentals are often available for $300 to $500.
- Food: Groceries from local markets are inexpensive. Basic food costs often land between $100 and $200 per month. Eating out also doesn’t cost much. A local two-course meal from a street vendor can be as low as $1.50, while fast food like pizza can range from $5 to $15.
- Transportation: Public transportation is easy to use and very affordable. Monthly costs are usually between $20 and $50 for budget-conscious travelers, and between $50 and $100 for a more comfortable lifestyle. A ticket on Lima’s electric mass transit system costs just $0.40 per ride. A taxi ride from the airport to the city costs around $18, while renting a 50cc scooter for a month can cost up to $750.
- Healthcare: Healthcare in Peru is quite affordable. If you don’t need much care, monthly costs are usually around $40 to $100. If you want more coverage or frequent doctor visits, costs can rise to about $250.
- Utilities: Monthly utility bills in Peru usually cost between $30 and $80 if you’re careful with usage. For larger homes or higher electricity consumption, costs can reach up to $150.
Taxes: If you stay in Peru for more than 183 days in a year, you’re considered a tax resident and must pay income tax on worldwide earnings. Tax rates are progressive, starting at about 8% on the lowest income bracket and rising to 14%, 17%, 20%, with a top rate of 30% for the highest earners. Most goods and services include an 18% value-added tax.
Cost of Living Comparison: LATAM vs. the US
Here’s a table comparing the cost of living in Latin America vs. the United States across major categories:
Country
Housing (Monthly)
Food (Monthly)
Transport (Monthly)
Healthcare (Monthly)
Utilities (Monthly)
Taxes
United States
$1,150–$1,700 (2BR rental)
$610
$820
$430
$370
10%–37% income tax (progressive); VAT not typical
Argentina
$200–$400 (1BR)
$300–$450
~$15
Mostly free (public); private varies
$55–$120
5%–35% income tax; 21% VAT
Brazil
$510–$1,300+ (1BR or family)
$125–$145
$30–$40
$90–$320 (private); SUS is free
~$70
0%–27.5% income tax; 17%–19% VAT
Colombia
<$500–$700 (1BR)
$190–$285 (for 2 people)
~$25–$35
$28–$190
$70–$120
0%–39% income tax; 19% VAT
Mexico
<$600 (1BR); beach condos more
Lower than US; ~$150–$250
$15–$30
$30–$70 (public/private)
As low as $3–$20 (electricity); gas ~$200/year
1.92%–35% income tax; 16% VAT
Perú
$200–$700 (1BR, city-dependent)
$100–$200
$20–$100
$40–$250
$30–$150
8%–30% income tax; 18% VAT
If you’re wondering, “Is it cheaper to hire in Latin America?” the answer is generally yes, especially when you look at day-to-day costs like housing, food, and healthcare. For U.S. companies, LATAM offers a compelling mix of affordability, time zone alignment, and expanding talent pools. Just keep in mind that factors like local economic stability, tax systems, and infrastructure can vary by country.
Latin America vs U.S. Salary: What Employers and Developers Really Get
For companies, hiring remote workers in Latin America is a smart and cost-effective way to grow a development team. You don’t just save on salaries — you also benefit from easier time zone coordination than you would working with teams in Asia or Eastern Europe. Many LATAM countries now boast improved English proficiency and a professional work culture, making collaboration even smoother. When you compare LATAM vs. U.S. salaries, the difference is big, especially for developers.
For workers, it’s not just about the paycheck. Moving to the U.S. might sound appealing, but challenges like visa requirements, complex taxes, and high living costs can be major drawbacks. That’s why many developers choose to stay in Latin America and work remotely for U.S. companies. The remote work salary setup often means they get paid more than local jobs while still enjoying the lower cost of living in their home country.
Still, both employers and workers should consider factors like inflation, money exchange rates, healthcare, taxes, and legal agreements. Some countries, like Argentina, may be less economically stable. Others, such as Costa Rica or Uruguay, offer more reliable conditions for long-term remote work.
Case Highlights & Examples
More developers across Latin America are building remote-first careers, thanks to global hiring platforms and more flexible team structures. Companies in the U.S. are taking notice, not just for the talent, but also for the cost savings.
Many developers in Latin America now work remotely through platforms like Awana, Deel, and CodersLink. According to Awana’s 2025 compensation report, companies hiring in the region can save around 41% on salaries compared to the U.S., without sacrificing access to skilled tech talent.
Public data shared by Deel, and cited by sources like Hofy, illustrates how quickly this trend is growing. Hofy reported that the number of global companies hiring remote workers in Latin America rose by 286% in the second half of 2021 and 161% in the first half of 2022. Argentina, Brazil, and Mexico were among the most popular countries for sourcing talent.
Other sources, such as BetterWay Devs and Index.dev, show the same pattern. In 2024, English-speaking developers in South America earned between $30,000 and $132,000, while comparable roles in the U.S. paid between $63,000 and $244,000. That’s a wage gap of up to 80% when comparing U.S. vs. Latin America salaries.
A 2025 guide also notes that senior developers in Latin America typically charge $65 to $100 per hour, which is roughly 30 to 50% less than their counterparts in the U.S. or Europe, without any loss in quality.
These numbers help explain why so many U.S. companies are hiring in LATAM: they gain access to top developers, better time zone compatibility, and major cost savings, all without lowering their standards.
Latin America vs. U.S. Salary: What the Numbers Don’t Tell You
The salary gap between Latin America and the U.S. is still wide, but it’s not just about the numbers. When you factor in cost of living, talent quality, and ease of hiring, the story becomes more nuanced. For many companies, hiring remote workers in Latin America isn’t just about saving money — it’s a strategic way to build flexible, high-performing teams in a global market.
For developers in the region, the rise of remote work has opened new opportunities to collaborate with international companies, without needing to relocate. In 2025, smart hiring means looking beyond pay and considering the local conditions that shape it.
Want to explore related topics like freelance vs. dedicated teams or how to manage time zone differences? Check out our articles here.