A complete guide to build hire and manage remote teams
Expanding your remote development team in Latin America gives you access to a highly skilled talent pool. Your choice of engagement model will shape costs, compliance, administrative effort, and long term results.
One important challenge to consider is salary negotiation. Candidates in the technology market, especially when dealing with international companies, often set high expectations for compensation. This can add a layer of complexity to the hiring process and makes it even more important to approach recruitment with a clear strategy. The main engagement models available and how they work are shown below.
Brazil’s expanding tech talent pool
Brazil has one of the largest concentrations of developers in Latam, with active communities in web, mobile, cloud, data, and DevOps. The country combines scale with depth, from enterprise backgrounds to product led startups. Near time zone alignment with North America enables real time collaboration and shorter feedback loops for distributed teams. Senior professionals are accustomed to remote work practices, daily standups, documentation discipline, and async collaboration.
Helpful read for regional context: why the Brazil time zone is an ideal fit for international teams.
Education and technical background of Brazilian engineers
Computer science and engineering programs emphasize data structures, algorithms, systems design, and software engineering disciplines. Many professionals start coding early and build practical skills through internships, open source contributions, hackathons, and startup experience. Common stacks include JavaScript, Python, Java, Node, React, React Native, and cloud platforms. There is growing maturity in modern DevOps, infrastructure as code, observability, and platform engineering.
Work culture and soft skills
Communication, ownership, and adaptability are consistent strengths among senior engineers. Professionals are used to collaborating in English with international teams, writing clear documentation, and operating in fast moving environments. The culture values accountability and proactive problem solving which supports remote first and outcome based delivery. Cultural proximity and overlapping hours make cross border management simpler compared to other global regions.
Cost comparison and efficiency
Compensation in Brazil is typically more cost effective than in the United States and Western Europe at similar seniority, especially for product oriented engineers and high demand roles. Total cost varies by city, seniority, and contract structure. The PJ contractor path can optimize costs by avoiding payroll taxes and mandatory benefits under employment law when supported by sound contracts and a reliable local partner. For a practical view of drivers, see the analysis on the cost to hire a software engineer in Brazil.
Helpful read for structure and compliance: models explained in this guide to hiring models in Brazil.
How to hire in Brazil and Latam
Contractor PJ: flexibility and speed with structured compliance
The contractor PJ model is the preferred route for many companies looking to hire remote developers. Professionals operate as independent service providers and invoice through their own legal entities. A crucial element for success with this model is the involvement of a local partner specializing in payroll, contract management, and compliance. The partner acts as an intermediary, ensuring that every contract is fully compliant with law, that payments are made promptly, and that both the company and the contractor receive ongoing support. The partner also plays a key role in negotiating and balancing fair salaries with candidates, bringing market knowledge to the table, especially since candidates in the tech market often set high expectations in compensation discussions mainly with abroad companies.
Key considerations
- Fast onboarding without a local entity
- Cost efficiency since payroll taxes and mandatory benefits of employment do not apply
- Flexibility to scale and to test markets with minimal commitment
- Requires solid contracts and a dependable partner to avoid misclassification risks
Best fit
• Companies that want agility, control over delivery, and minimal administrative burden
Helpful read: overview of PJ versus CLT in hiring models in Brazil.
Direct hire: full control with flexible contracting and recruitment support
Direct hire means your company manages the professional relationship directly. You can hire as employees which usually requires a local entity and full management of payroll statutory benefits and compliance or you can engage talent as direct contractors through a PJ agreement. A recruitment partner can be engaged to identify and assess candidates in any scenario. What changes between models is the contract type and who handles ongoing administration and compliance after onboarding.
Key considerations
- Full control over recruitment compensation and day to day management
- Flexible to structure as employment or direct contractor agreements
- Internal ownership of payroll compliance and HR processes
- Stronger team integration with higher operational workload
Helpful reads: senior focused searches via direct hire services and leadership roles through global executive search.
Employer of record EOR: compliance and convenience at a premium
An EOR provider is the legal employer on your behalf and manages contracts payroll taxes and statutory benefits under employment law. EOR ensures full compliance and can reduce legal risk. Total cost is usually higher than the contractor model because of payroll taxes social security contributions and mandatory benefits that an employer must provide.
Key considerations
- Maximum compliance with employment protections and benefits
- Simplified administration and payroll handled by the provider
- Higher cost relative to a contractor setup
Context: understand cost dynamics between markets with this comparison of the cost to hire a software engineer in Brazil.
Outsourcing: speed and simplicity for projects or squads
Outsourcing is engaging a third party to deliver projects or squads. The provider handles recruitment contracts HR payroll and performance management. This path is efficient for project based or fluctuating demand though control over team culture can be lower.
Key considerations
- Rapid access to assembled teams or niche expertise
- HR and compliance responsibilities handled by the provider
- Suitable for project based or rapidly changing roadmaps
Helpful read: planning a nearshore unit with build a nearshoring squad.
Quick comparison
| Aspect | Contractor (PJ) | Direct Hire | EOR | Outsourcing |
| Local entity required | No | Usually required for employment | No | No |
| Payroll responsibility | Partner or intermediary | Your company | EOR provider | Outsourcing partner |
| Statutory benefits | Not required | Required if employment regime | Mandatory under law | Included in service fee |
| Compliance risk | Low with good partner | High | Low | Low |
| Administrative burden | Low | High | Low | Low |
| Cost efficiency | High | Variable | Lower due to taxes | Variable |
| Speed of onboarding | Very fast | Fast | Fast | Very fast |
| Best for | Flexible remote teams | Internalization and direct relationship | Full compliance or benefits | Projects or rapid scaling |
Where to find the best talent
While São Paulo is the largest hub several cities offer strong senior pools and distinct strengths.
• São Paulo: Broadest pool in product and platform roles and intense competition. Useful for specialized stacks and scale.
• Recife: Home to Porto Digital with strong ties to UFPE good availability in web mobile and data. Competitive rates for senior talent.
• Porto Alegre: Mature ecosystem for backend DevOps and infrastructure. English proficiency is often above average and retention can be strong.
• Belo Horizonte: UFMG drives senior engineering and research. Less saturated than São Paulo which favors retention.
• Florianópolis: High quality of life and a dense startup scene. Many remote ready seniors with prior international experience.
• Manaus: Niche skills in mobile embedded and hardware software integration due to local R and D centers.
When location precision is important consider a structured talent mapping before opening roles.
How to approach and recruit top engineers
Adopt an outbound consultative motion and think value first. Be clear about the problem your team is solving the stack and the level of responsibility. Share compensation ranges early and align expectations through market data. Emphasize impact code quality autonomy and career progression rather than only title. Keep your process predictable mobile friendly and asynchronous friendly to reduce friction.
What to watch out for
• Compliance and contract structure: Misclassification risk exists when the legal structure does not match the working reality. Use proper contracts and a partner to manage details.
• Compensation and currency: Exchange rate swings and inflation can affect expectations and renewals. Set clear review cycles and currency terms from the start.
• Retention and engagement: Avoid roles that are pure staff augmentation without product context. Engineers value impact technical direction and growth.
• Process quality: Slow steps vague feedback or unclear expectations reduce acceptance rates. Keep response times short and interviews purposeful.
When a partner can help
A specialist partner can streamline sourcing interviewing compensation benchmarking contract structure invoicing and payroll while your team focuses on delivery. This is especially useful when building multi city teams when entering new markets or when you need to compare contractor direct hire EOR and outsourcing paths for different roles.
Useful service pages for reference when you need full support: contractor services and direct hire services.
Frequently asked questions
Can I hire without a local entity
Yes. Contractor PJ and EOR do not require a local entity. The choice depends on compliance needs and cost structure.
Is EOR more compliant than contractor
EOR uses employment law and includes statutory benefits. Contractor is a service based relationship and is compliant when contracts and operations are structured correctly with a local partner.
Which model is the most cost efficient
Contractor PJ typically has the lowest total cost of ownership. EOR is usually higher due to payroll taxes and benefits required by employment law.
Where are the strongest tech hubs
São Paulo Recife Porto Alegre Belo Horizonte Florianópolis and Manaus are consistent sources of senior talent.
How do time zones affect delivery
Overlap with North America and Europe favors real time collaboration for discovery reviews and incident response. Learn more about why the Brazil time zone is an ideal fit.
Final thoughts
No hiring model delivers results in isolation. Whether you choose contractor direct hire EOR or outsourcing the long term success of your remote team will always depend on the quality of your recruitment process. A reliable and assertive talent acquisition strategy is fundamental to ensure that you consistently hire excellent professionals and that your chosen model truly supports performance retention and growth.
