Hiring a remote tech team in Brazil gives your company access to highly skilled professionals in one of the most vibrant nearshore markets in Latin America. Expanding your remote development team in Latin America gives you access to a highly skilled talent pool and one of the most dynamic nearshore markets. Your choice of engagement model will shape costs, compliance, administrative effort, and long term results when building remote teams with Brazil tech talent.
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 is especially true for Brazilian engineers and developers, given the growing demand for remote jobs in the Latam tech market. 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 for companies looking to hire developers in Brazil and across the region are shown below.
Contractor (PJ): Flexibility and speed with structured compliance
The contractor PJ model is the preferred route for many companies looking to hire developers in Brazil and tap into Brazil tech talent. In this approach, professionals operate as independent service providers, issuing invoices for their work through their own legal entities, known as Pessoa Jurídica. This structure is common in the technology sector and enables companies to access top talent rapidly, without having to establish a local subsidiary or entity in a Brazilian tech hub.
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 local 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:
- Enables fast and compliant onboarding of professionals even without a local entity
- Highly cost efficient since there are no payroll taxes or mandatory employee benefits, and fees are transparent
- Flexibility to scale your team up or down or to test new markets with minimal commitment
- Requires a solid contract structure and reliable partner to avoid misclassification risks and ensure smooth operations
Direct Hire: Full control with flexible contracting and recruitment support
Direct hire means your company is responsible for managing the professional relationship directly. You can choose to contract talent as formal employees, which often requires a local entity and full management of payroll, statutory benefits, and compliance, or you may engage professionals as contractors (PJ) through a direct agreement. Both models are commonly used for hiring Brazilian engineers and other remote talent.
A recruitment partner can be engaged to help identify, assess, and present the best candidates, streamlining the hiring process. This is true for direct hire as well as for contractor, EOR, and outsourcing models. What changes is the contract structure and who is responsible for ongoing administration and compliance after the hire.
Key considerations:
- Full control over recruitment, compensation, and daily management
- Flexibility to contract talent as either employees or direct contractors
- Recruitment partners can add value by sourcing and vetting candidates, regardless of the contract type
- Requires managing all legal, payroll, and compliance processes internally after onboarding
- Enables stronger integration with internal teams but can increase complexity and workload
Employer of Record (EOR): Compliance and convenience at a premium
The EOR model allows companies to employ professionals through a third party provider who acts as the legal employer. The EOR manages employment contracts, payroll, taxes, and all statutory benefits required by law. This approach is especially useful for companies entering the Brazilian market or hiring in Latam tech hubs without a local entity.
This model guarantees full compliance, making it attractive for companies that require formal employment relationships and want to minimize legal risks. However, EOR solutions are typically more expensive than the contractor model. This is due to government payroll taxes, social security contributions, and mandatory benefits that the EOR is legally required to provide. All of these factors are reflected in the total cost.
Key considerations:
- Ensures maximum legal protection and peace of mind with all statutory benefits such as social security, vacation, and severance
- Simplifies onboarding and ongoing administration since the EOR handles everything related to employment
- Higher cost compared to the contractor model due to required taxes, benefits, and provider administrative fees
- Best suited for companies operating in highly regulated industries or needing to offer a full benefits package
Outsourcing: Speed and simplicity for projects or squads
Outsourcing means contracting a third party company to deliver technology projects or manage complete teams in Brazil or Latam. The outsourcing provider handles recruitment, HR, contracts, payroll, and performance management, delivering either on a project basis or through ongoing engagement.
Key considerations:
- Enables rapid access to assembled teams or niche skills in Brazilian tech hubs, without the burden of internal HR management
- Shifts responsibility for compliance and payroll to the provider
- Best for organizations with short term, project based, or highly fluctuating demands
- Direct influence over day to day team culture may be limited
Comparison table: Contractor, Direct Hire, EOR, Outsourcing
| 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 |
Questions to ask before deciding
- What level of compliance and statutory benefits is required for your business or industry
- How important are speed and flexibility in your remote hiring strategy
- Does your organization have the capacity or desire to manage HR, payroll, and compliance internally
- Are your needs long term and strategic, or project based and temporary
- How much operational control do you want over your remote team members
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 ensuring that you consistently hire excellent professionals and that your chosen model truly supports your goals for performance, retention, and growth in Brazil and the nearshore Latam market.
