Global Expansion in LATAM: A Practical Guide for US Companies

For many US companies, Latin America has stopped feeling like a faraway region on the map. It’s becoming the next natural step in a global expansion plan, especially for teams looking for stability, new markets, and fresh talent without dealing with tough time zone gaps or unfamiliar business rhythms.

The region has grown quickly. Cities like Mexico City, Bogotá, Medellín, Buenos Aires and São Paulo mix strong tech ecosystems with a younger workforce and a business climate that’s increasingly open to international collaboration. You see it in every conversation about Latin America business: more companies are exploring the region, not just out of curiosity but because it genuinely fits the way they work.

North American companies expanded their South American remote teams by about 70% in 2022, a sign of how quickly they’ve started hiring developers, engineers, and other skilled professionals across the region.

For leaders rethinking how to expand, LATAM feels close in every practical way. Flights are short, schedules line up, and the way people work matches today’s mix of remote work and in person collaboration. It’s a rare combination, and it explains why expanding into LATAM has moved from a long term idea to a very real opportunity for US teams.

What global expansion really means today

Global expansion no longer begins with a lease or a local entity. US companies enter new regions step by step. They test a market first, hire a few people, and build small distributed teams long before they think about heavier commitments.

Hybrid work is already the norm for many teams, so expansion follows the same rhythm. Instead of locking into a full office from day one, companies use flexible space when they need to meet and rely on remote team collaboration for everything else.

So what is global expansion now?

It’s a practical mix of:

• flexible hiring
• distributed teams
• on demand workspace
• early city validation
• the ability to scale or pause without pressure

It’s a way of growing that stays adaptable and avoids unnecessary infrastructure.

The benefits of global expansion

When companies step into new regions, they open doors that often stay closed at home. The benefits of global expansion become visible fast. You see it in the access to larger markets, the chance to reach new customer segments, and the ability to build a more diverse revenue base. It also brings more stability by spreading risk across multiple economies instead of relying on just one.

For US companies, global expansion often means:

• reaching customers in fast growing markets
• building teams with new skills and perspectives
• reducing operational risk across regions
• discovering opportunities that simply don’t exist locally

It’s a straightforward way to grow with more resilience and more room to adapt.

Why companies expand into Latin America

Latin America isn’t just an interesting idea on a map. The numbers show why it’s becoming one of the most practical regions for companies that want new markets, more stability, and a realistic path to growth.

A large and growing market

The population of Latin America and the Caribbean is estimated at around 668 million people in 2025. It’s a huge customer base for companies that want to look beyond crowded US markets.

For many teams exploring Latin America business, this scale offers real room to grow.

Economic weight that keeps increasing

The region’s combined GDP reached roughly 7.31 trillion dollars in 2024. Forecasts for 2025 and 2026 point to steady growth around 2.3 to 2.4 percent. At the same time, demand in areas like e commerce and services continues to rise, supported by higher digital adoption and stronger consumer behavior.

A young, urban, and digitally active workforce

A large share of the population lives in cities, which supports better infrastructure, stronger connectivity, and a remote friendly way of working. Sectors like ecommerce, fintech, and tech outsourcing are expanding quickly. This makes it easier for US companies to hire, collaborate, and build teams without heavy local setup.

Established ecosystems and tech hubs

Cities such as Mexico City, São Paulo, Bogotá, Buenos Aires, Montevideo and Medellín already operate as business and tech hubs. Many US companies work with partners or suppliers here, which lowers friction when entering the region. Strong cross border trade between the US and LATAM also shows how closely linked the economies already are.

A natural fit for hybrid expansion

The region has embraced hybrid and remote work, giving companies the freedom to build teams and test cities without committing to traditional offices too early. As wages, skills, and digital infrastructure evolve, distributed teams can operate smoothly across multiple cities.

For US companies looking for new growth paths, Latin America offers scale, talent, strong ecosystems, and a practical environment for flexible expansion.

What this means for US companies considering LATAM expansion

When you look at all the data together, Latin America stands out. A large population, a growing economy, strong business ecosystems, and fast digital adoption create a mix that is hard to find elsewhere. For US companies expanding into LATAM, this translates into very real advantages.

1. You get access to a big and still growing customer base.
2. You can build  distributed teams  with strong skills and competitive costs.
3. You can enter the region through remote and hybrid work, using flexible workspace instead of early infrastructure.
4. And you get opportunities across both consumer markets and business services, from outsourcing to IT and creative roles.

This is also where a flexible workspace partner like Pluria becomes useful. It lets companies test markets, scale at a comfortable pace, and adapt to local realities without committing to long leases or heavy setups.

What expansion into LATAM means specifically for US companies

For many US companies, the benefits of entering Latin America show up quickly in day to day work. The region offers a mix of practical advantages that are hard to find elsewhere, especially for teams already comfortable with hybrid work and cross-border collaboration. You hear it often in conversations about business with Latin America.

Time zones that actually work

Most major cities in the region sit close to US time zones. Teams in Mexico City, Bogotá, or São Paulo can work alongside colleagues in New York, Austin, or Miami without late calls or awkward overlap. Normal schedules stay normal, which makes collaboration feel easier and more natural.

Travel that doesn’t feel international

Flights between the US and LATAM are direct, frequent, and short enough to support quick onsite visits. Cities like Mexico City, Bogotá, Lima, and São Paulo are reachable without long travel days, which makes in person meetings easier to plan.

Cultural proximity that helps teams connect

US and LATAM work cultures share a lot of common ground. Decision making is fast, communication is collaborative, and the service mindset is strong. This makes it easier for US teams to adapt and for cross-border projects to gain momentum.

A comfortable home for hybrid work

Hybrid and remote work are well established across the region. People are used to working across multiple cities, and many rely on coworking spaces when they need in person time. This gives US companies the freedom to build distributed teams without heavy local infrastructure.

In short, LATAM gives US companies a rare combination: close time zones, easy travel, cultural alignment, and a workforce that already knows how to operate in modern hybrid environments.

How US companies think about office presence during expansion

When US companies enter a new region, they almost never start with a long office lease. Most teams want to test the market first, understand the talent landscape, and stay flexible while they figure out where the real opportunities are. Expansion has become a gradual process shaped by distributed work and hybrid habits.

Why long leases feel risky early on

Traditional offices lock companies into multi year commitments, even when the team is still small or spread across different cities. For most US teams, that kind of commitment doesn’t match the first months of expansion. They need room to adjust as they learn what works.

Remote work sets the tone

Many teams already operate as a remote team, so they expect the same level of flexibility when entering LATAM. They want a setup that supports distributed talent, simple onboarding, and collaboration that doesn’t depend on having a fixed office.

Why digital tools aren’t enough on their own

Companies use a lot of online tools to stay connected, but leaders know that software alone can’t replace real interaction. Teams still need moments to sit together, ask questions in person, build trust, and solve problems face to face. Those moments don’t require a permanent office. They only require the right space when people choose to meet.

Hybrid presence as the practical choice

What most US teams want is straightforward. Remote work for everyday tasks, and access to physical space when it helps the work move forward. A few hours in a meeting room, a day in a hub, or a small gathering once a week is often enough. It supports better collaboration without the weight of a long lease.

This approach makes expanding into LATAM smoother. It gives companies the freedom to learn the region, meet in person when they need it, and build a presence only when the business is ready.

Talent: Hiring in Latin America

One of the biggest reasons US companies look toward the region is talent. Searches like Latin America hiring or hire LATAM show how often teams consider building capacity in LATAM, especially when they want people who can integrate quickly into hybrid and distributed teams.

Skilled talent across many roles

The region has strong pools of professionals in tech, product, customer support, operations, sales, and creative work. Cities such as Mexico City, Bogotá, Medellín, Buenos Aires, and São Paulo have become dependable sources of well trained candidates across these specializations.

English levels that support cross border collaboration

English proficiency varies from country to country, but in most major cities the professional workforce communicates comfortably with US teams. This makes onboarding easier and helps projects move without friction.

Competitive salaries without compromising quality

For many US companies, hiring in LATAM means gaining access to high quality talent at competitive compensation levels. It gives teams room to grow while keeping standards strong.

A natural fit for hybrid work

Hybrid and remote practices are already common across the region. Talent in LATAM is used to collaborating with people in different cities and countries, which makes integration with US teams smooth from the start.

For many companies, LATAM talent is no longer a secondary option. It is becoming a central part of their long term workforce strategy.

Preferred countries for expansion

Not every country in Latin America plays the same role in an expansion plan. Most US companies start with one or two familiar choices, then refine their strategy as they learn where talent, customers, and operations align best.

Mexico

Often the first option for Mexico expansion. It is close to the US, has strong trade ties, and offers a large consumer market with a well developed tech and services ecosystem. Mexico City and Guadalajara are common landing points for teams that want a quick, practical start.

Colombia

A popular pick for Colombia expansion, especially for tech, customer support, and shared services. Bogotá and Medellín combine solid infrastructure with strong local talent and more approachable operational costs.

Brazil

Choosing Brazil expansion means entering the largest market in the region. São Paulo and Rio de Janeiro are major business hubs with significant potential, even though regulations and day to day operations can be more complex than in neighboring countries.

Argentina

Known for excellent technical and creative talent, especially in software, design, and product roles. Many companies use Buenos Aires as a talent hub rather than a first market for sales.

Chile

A smaller market, but steady and business friendly. Santiago often becomes a regional base for sectors like energy, mining, and finance.

Most US companies begin with one or two of these countries, then adjust their footprint as they learn how each market fits their goals and their teams.

Barriers and common mistakes

Even with all the opportunity, expanding into LATAM comes with a few challenges that US companies need to understand early. Most problems appear when teams move too fast or rely on assumptions that don’t reflect how the region actually works.

Complex tax and compliance rules

Every country has its own approach to taxes, reporting, and employment. What feels simple in Mexico can be very different in Colombia or Brazil. When companies overlook these details, they often face delays, unexpected costs, or compliance issues that could have been avoided.

Opening an entity too early

One of the most common mistakes is rushing into entity setup or legal entity setup. Many US teams assume they need a local entity on day one, even if they are still testing the market, building a small team, or exploring opportunities across multiple cities. An entity creates overhead and long term commitments that rarely match the early stages of expansion.

Missing cultural context

Business culture in LATAM is relationship driven, collaborative, and often more personal than what US teams expect. Every country has its own style of communication and decision making. When companies overlook these differences, onboarding, hiring, and client interactions become harder than they need to be.

There are easier ways to start

Most companies don’t need heavy operations at the beginning. They can hire selectively through contractors or EOR partners, use flexible workspace for local collaboration, and learn the region with small distributed teams before making long term decisions.

Taking a lighter approach makes expansion smoother. It gives companies time to understand the market and reduces the risk of early missteps.

Leased offices vs flexible presence: what US teams actually need

When US companies enter LATAM, the office question shows up early. But signing a long lease at the beginning usually creates more risk than support. Most teams are still small, still testing the market, and still figuring out where they want to grow. A multi year commitment rarely matches that reality.

Why traditional leases don’t fit early expansion

A long contract limits flexibility. When teams are just starting out, locations shift, hiring plans evolve, and operations change month to month. Committing to a full office space for rent in Mexico City or a fixed office in Bogotá before the business settles often leads to unused space or expensive course corrections.

How flexible hubs and coworking actually help

Hybrid teams use space differently. They work remotely most days and meet only when collaboration matters. Flexible hubs and coworking spaces fit that rhythm by giving teams access without locking them into a permanent office.

In cities like:

• Bogotá, where office space Bogota and coworking Bogota options are easy to find
• Medellín, with a strong mix of coworking and office space Medellín
• Mexico City, where meeting rooms and full coworking CDMX networks cover every neighborhood

…teams can book the right space whenever they need it.

What US teams are actually looking for

Most hybrid and distributed teams from the US aren’t searching for a permanent headquarters in their first months. They want:

• a place to collaborate, onboard, or meet clients
• the ability to scale workspace up or down
• the option to test a city before making long term decisions
• predictable costs instead of multi year leases

Flexible workspace matches the way modern teams work. It keeps expansion light and adjustable, and it gives companies room to grow in LATAM without locking themselves into infrastructure before they are ready.

How to choose the right city before committing to an office

Choosing the right city is one of the most important steps when expanding into LATAM. Many US companies start with big, familiar markets, but a closer look at local conditions often reveals differences that can shape hiring, collaboration, and long term growth.

Talent density and skill availability

Each city brings something different. Mexico City offers broad talent across many roles. Bogotá and Medellín stand out in tech and customer support. São Paulo is strong in finance and enterprise services. Knowing where the right people are makes early hiring smoother and helps teams find a natural rhythm.

Industry and sector clusters

Cities often develop unique strengths. Fintech grows well in Mexico City, creative and tech work thrives in Buenos Aires, enterprise services concentrate in São Paulo, and Bogotá is known for BPO and customer operations. Matching your industry to a city’s existing ecosystem usually leads to faster results.

Workspace availability and cost

Before choosing a long term office, companies need to know whether a city has the kind of space that supports real collaboration. Meeting rooms, hubs, and coworking options matter more than ever. This is where Pluria’s networkhelps, because it lets teams explore different neighborhoods and workspace styles without committing too early.

Safety and daily mobility

How people move around a city shapes the daily experience of expansion. Areas with reliable transportation, safer streets, and simple routes make it easier for teams to meet and work together. These practical details matter just as much as the business case.

Connectivity with the US

Direct flights, predictable travel times, and aligned time zones make certain cities easier entry points. Places with strong links to US hubs reduce friction for in person meetings and help teams stay aligned.

Looking at these factors before choosing an office lowers risk and gives companies a clearer picture of where they truly fit. Flexible workspace makes the process easier. Teams can test locations, meet locally, and learn how each city works before deciding where to build a deeper presence.

The right expansion model for LATAM

There is no single formula for global expansion in Latin America. Most US companies combine a few models at the beginning, learn how the market responds, and adjust their approach as they grow. The goal is simple: stay flexible and keep early commitments low.

EOR for fast and simple hiring

Using an EOR in LATAM lets companies hire employees quickly without creating a local entity. It is a practical option for testing a market or building an early team before deciding on a long term structure.

Contractors for specialized roles

Many companies begin with contractors to cover specific skills or short term needs. It gives teams access to local expertise while keeping the initial footprint light.

Hybrid teams as the default model

Most US teams already work in hybrid mode, so expansion follows the same pattern. Remote work handles the everyday tasks, and access to workspace supports collaboration when needed. It keeps the structure flexible while the company learns more about each city.

Distributed teams across multiple hubs

Instead of concentrating everyone in one place, many companies build distributed teams across cities like Mexico City, Bogotá, Medellín, São Paulo, or Buenos Aires. This spreads risk, expands access to talent, and reduces the pressure to choose a single main market too early.

Workspace hubs to support real collaboration

No matter the hiring model, teams still need moments to meet in person. Workspace hubs and coworking options make it easy to run meetings, onboard new people, or bring a small group together without the cost of a long lease.

Taken together, these models give US companies a flexible and practical path into LATAM. They support speed, learning, and adaptability without forcing heavy decisions before the company is ready.

How Pluria helps US companies expand into LATAM

Entering a new region is much easier when teams have a place to meet, work together, and build trust without committing to heavy infrastructure. Pluria gives companies that foundation by offering a network of flexible spaces across Latin America that support real collaboration.

A network that supports everyday teamwork

US teams can choose from hundreds of workspaces in major LATAM cities. Whether they need a quiet desk, a meeting room for clients, or a larger area for team sessions, everything is available on demand. This helps small teams, contractors, and early hires work together without relying only on online communication.

Hubs designed for hybrid teams

Hybrid teams spend most days working remotely, but they still need moments of alignment. Pluria’s local hubs make it easy to bring people together from different neighborhoods or even different cities, without committing to a fixed office.

Test cities before you commit

Expansion rarely follows a straight line. With Pluria, companies can explore different cities at their own pace. Mexico City today, Bogotá next month, São Paulo later on. No leases, no early infrastructure, and no pressure to decide too soon. It gives teams space to understand the market and validate talent pools before taking the next step.

Skip long term leases entirely

Pluria removes the stress of choosing a permanent office too early. Teams share space when they need it and keep costs flexible while hiring plans and operations take shape. If the company decides to open a long term office later, it is based on real usage and real needs.

Everything in one place

All workspace activity sits in one simple platform. Leaders can see where people work, how often they meet, and which cities naturally become collaboration hubs. It brings clarity without adding new tools or processes.

A collaboration tool in the physical world

Digital tools keep remote teams connected, but they cannot replace the quality of in person work. Pluria fills that gap by giving distributed teams a place to meet, share ideas, and move projects forward. It is a collaboration tool built for the physical world, helping US companies expand into LATAM in a way that stays flexible and grounded.

Best practices for expanding into LATAM

Expansion works best when companies stay flexible and learn from real experience before making big commitments. A few simple habits can make the process smoother for US teams expanding into LATAM.

Start by testing, not building

Use small teams, contractors, or short projects to understand the market. Early testing shows which cities make sense and where the right roles can grow naturally.

Hire flexibly at the beginning

Mix contractors, EOR support, and part time roles. It gives companies room to adjust hiring as demand becomes clearer and keeps the early footprint light.

Avoid premature entity setup

A local entity should come only after the company has confirmed product fit, stable operations, and a consistent hiring plan. Moving too fast with entity setup creates overhead that most early stage teams do not need.

Support hybrid work from day one

Give teams access to flexible workspace so they can meet, collaborate, and build trust even if they work remotely most of the time. It creates structure without committing to a long term office.

Choose cities based on real data

Look at talent availability, local industry strengths, workspace options, safety, and travel connections. Each city supports a different expansion strategy, and the right match makes growth much easier.

These practices help companies enter the region with lower risk, clearer information, and more adaptability. They create a stronger foundation for long term success in LATAM.

Conclusion

Latin America brings together strong markets, a deep talent pool, and the kind of flexibility US companies look for when growing internationally. With a hybrid approach and access to on demand workspace, teams can enter the region gradually, learn how each city works, and scale when the timing feels right.

A flexible setup makes expansion into LATAM safer and easier to manage. It lowers early risk, supports real collaboration, and gives companies the room to adapt as opportunities grow.