As the cost of living and expenses rise in the United States and Canada, companies are looking south of the U.S. border for economic relief. While Mexico has been attractive since the 1990s due to NAFTA, American companies are now looking even further south for prospective tech hubs and talent sourcing locations.<\/p>\n\n\n\n
South America has long been a place for U.S. companies to set up roots overseas. Argentina, the second-largest country in South America, is one of the first places that companies look at when considering their technical expansion overseas.<\/p>\n\n\n\n
Argentina, whose capital, Buenos Aires, is called the \u201cParis of South America\u201d boasts a rich history, but also plenty of STEM talent, a low cost of living, developers with great English proficiency, and tax incentives for tech companies.<\/p>\n\n\n\n
Read on to see why you should consider Argentina as a potential tech hub location and\/or a great place to hire remote developers.<\/p>\n\n\n\n
A quick note before we start:<\/strong>\u00a0this post is designed to give you a snapshot of Argentina\u2019s suitability as an engineering hub location, but it should not be relied upon instead of seeking professional advice specific to your situation.<\/em><\/p>\n\n\n\n Looking for top talent fast? See how <\/em>Arc<\/a> can help you:<\/em><\/p>\n\n\n\n \u26a1\ufe0f Find developers, designers, marketers, and more Hire top talent with Arc risk-free \u2192<\/strong><\/a><\/p>\n\n\n\n Since 2015, Argentina boasts more than 20,000 STEM graduates annually. There is one engineering graduate for every 5,000 people in Argentina.<\/p>\n\n\n\n There are 39+ programs for computer science in Argentina, including programs at: National Technical University, the University of C\u00f3rdoba, Buenos Aires Institute of Technology, ORT, the National University of Buenos Aires, CITECH, National University Antonio Jauretche, National University of Cordoba, National Central University, and Mar\u00eda S\u00e1nchez de Thompson Technical School.<\/p>\n\n\n\n In addition to the large number of STEM graduates, the Argentine government has sponsored a program, Plan 111Mil to train over 100,000 developers.<\/p>\n\n\n\n According to Stack Overflow, in 2018, there were 114,576 developers from Argentina, the second-highest in South America. In June 2019, the president of the Chamber of Industry for Software in Argentina estimated that there will be as many as 134,000 people working in Argentina\u2019s IT industry by 2020.<\/p>\n\n\n\n In addition to a large developer pool, Argentina is also known for the quality of its tech talent: Argentina took the top spot in Coursera\u2019s 2019 Global Skills Index for cutting-edge technical skills.<\/p>\n\n\n\n Read More<\/strong>: Toronto vs Vancouver: Where to Build Your Next Remote Engineering Team<\/a><\/p>\n\n\n\n In an interview with one of Argentina\u2019s largest newspapers<\/a>, La Naci\u00f3n, Google\u2019s Eric Schmidt explained why Buenos Aires was chosen as a hub (translated with Google Translate):<\/p>\n\n\n\n We decided on Argentina by analyzing the quality of its university education. We usually employ young people, who have a good education; We reviewed the options we had and Argentina seemed to us the best possible business decision. When we did our analysis we saw that the country has particularly good universities, and that is a good basis for us; we rely heavily on universities. The government gave us a lot of support in this, too. When we opened the Dublin offices we had 50 people; today we have 2000. So maybe in time the same will happen here.<\/p><\/blockquote>\n\n\n\n According to Modaes, a Spanish magazine<\/a>, Amazon chose to put its AWS data center in Argentina rather than Chile to benefit from the new export tax exemption law with a 35% to 15% reduction in income tax and to pay less in labor costs. In addition, in the free trade zone in which it will be installed, Amazon will not pay national or provincial taxes on energy consumption, which will be an important benefit. (Note \u2014 translated with Google Translate.)<\/p>\n\n\n\n When interviewed about JP Morgan\u2019s presence in Argentina<\/a>, CIO Lori Beer had this to say (translated with Google Translate):<\/p>\n\n\n\n Buenos Aires has become especially relevant since it was established to meet the needs of JP Morgan in every corner of the globe. We are very excited about what is happening in Buenos Aires, which has become a critical place, a key piece that supports our banking business. Of the 1,400 employees in the service center, 600 are already in technology and we plan to reach 800 by the end of the year. The goal for 2019 is to reach more than 1000. In turn, for the entire hub, the idea is to increase the workforce to reach 2000 next year.<\/p><\/blockquote>\n\n\n\n Mat\u00edas Casoy, country manager of Rappi, a delivery app, said to iProUp<\/a> (translated with Google Translate):<\/p>\n\n\n\n When we started looking for talent for the operation, we had talks with the Colombian team and realized that Argentina stood out in Latin America for its very good technology profile.<\/p><\/blockquote>\n\n\n\n In an interview with iProUP<\/a>, Carlos \u00c1lvarez said of Argentina (translated with Google Translate):<\/p>\n\n\n\n In Argentina we have the advantage of having a certain critical mass of innovative companies, a fairly consolidated ecosystem with respect to the region and an open and accessible educational system, which gives us a good available talent base.<\/p><\/blockquote>\n\n\n\n Read More<\/strong>: All You Need To Know To Build An Engineering Team in Mexico<\/a><\/p>\n\n\n\n You can also try <\/em>Arc<\/a>, your<\/em> shortcut to the world’s best remote talent:<\/em><\/p>\n\n\n\n \u26a1\ufe0f Access 450,000 top developers, designers, and marketers <\/a>Try Arc and hire top talent now \u2192<\/strong><\/a><\/p>\n\n\n\n Argentina is in the UTC-3 time zone, putting Argentina one hour ahead of Eastern Daylight Time (EDT) and two hours ahead of Eastern Standard Time (EST). <\/p>\n\n\n\n In the spring and summer, Argentina is therefore one hour ahead of New York and Boston, two hours ahead Chicago and four hours ahead of San Francisco and Seattle.<\/p>\n\n\n\n If you’re hiring remote developers from the US or Canada, working across time zones<\/a> won’t be an issue!<\/p>\n\n\n\n Compared to its Latin American neighbors, Argentina is one of the best in the region. According to EF\u2019s English Proficiency Index, Argentinians scored 58.38 out of a 100 points \u2014 the highest score among all Central and South American countries. <\/p>\n\n\n\n In fact, Argentina was also the only country in the region with a score in the “high proficiency” range (58 to 62 points).<\/p>\n\n\n\n Argentina ranks 47th on the World Happiness Ranking<\/a> and received a 6.086 World Happiness Index score. For reference, the United States ranked 19th and 6.892, respectively, and Canada 9th and 7.278.<\/p>\n\n\n\n The cost of living is generally very affordable (by North American standards). A one-bedroom apartment in the center of Buenos Aires will run $263 USD. In Cordoba and Rosario, rents for an equivalent place within their city centers are roughly $175 and $183 USD, respectively.<\/p>\n\n\n\n While Argentina is known for its sophistication and higher cost of living relative to other South American countries, hiring a developer in Argentina won\u2019t break the bank. Below are average annual desired salaries in U.S. dollars for remote Arc Devs in Argentina:<\/p>\n\n\n\n Read More<\/strong>: How Much to Hire a Software Developer: Freelance vs Full-Time Costs<\/a><\/p>\n\n\n\n Argentina makes an ideal engineering hub because of its affordable pool of high quality English-speaking developers, its time zone overlap with the United States (great for scheduling meetings), its low cost of living, and its tax incentives for companies in the tech industry.<\/p>\n\n\n\n If you set up your tech hub in a large city like Buenos Aires, you\u2019ll be able to hire not only the best of Argentine software engineering talent but also emigrants from MERCOSUR countries<\/a> like neighboring Brazil and Chile who have settled in Buenos Aires for its rich culture and cosmopolitan atmosphere.<\/p>\n\n\n\n While Argentina offers employees more protections than companies in the United States may be used to, it is relatively easy to move senior staff members to Argentina once your company paperwork has been filed.<\/p>\n\n\n\n Argentinian employees are entitled to:<\/p>\n\n\n\n All employees, regardless of whether they are full-time, part-time, fixed term contract, temporary, or seasonal workers, are entitled to equal benefits and conditions as full-time, long-term employees. The monthly minimum wage, as of October 2019, is equivalent to USD $261, regardless of the worker\u2019s age and experience.<\/p>\n\n\n\n In Argentina, overtime cannot exceed 30 hours a month and 200 hours per year without authorization by the Ministry of Labour, Employment, and Social Security. Overtime hours must be paid at a rate of 50% on top of normal salary.<\/p>\n\n\n\n If your employee works during the weekly rest period or on a public holiday, they must be paid 100% on top of normal salary. A standard work day is nine hours, with a one hour lunch break.<\/p>\n\n\n\n There are 17 public holidays in Argentina, including Christmas, New Years, Easter, Labor Day, and Argentina Independence Day.<\/p>\n\n\n\n Read More<\/strong>: Canada, Mexico, and Argentina: Where to Build Your Engineering Hub<\/a><\/p>\n\n\n\n As of June 6, 2019, Argentina enacted new tax incentives to encourage high tech businesses to relocate to Argentina. Some of these incentives include:<\/p>\n\n\n\n Foreign nationals must have an entry permit to apply for a working visa. Entry permits can be obtained from either an Argentine embassy or consulate or the National Immigration Office. A work permit lasts for up to three years. A residence fee is about USD $130 and can take about 20 days to get an entry permit.<\/p>\n\n\n\n Before an employee can receive an entry permit, their employer has to have registered with the Federal Administration of Public Revenue (AFIP) and the single national registry of foreigner applicants of the national direction of migration.<\/p>\n\n\n\n There are no restrictions on the nationality of managers and company directors other than that the majority of the members of a board of directors must be domiciled in Argentina.<\/p>\n\n\n\n If you want to move your senior staff to Argentina, you must first register before a registry of employers that hires foreigners. In order to obtain a working visa, your senior staff member should be registered as an employee of a local company in Argentina.<\/p>\n\n\n\n All foreigners have to file a criminal records certificate notarized from the country or countries where they have been living in the last three years, as well as from Argentina.<\/p>\n\n\n\n Read More<\/strong>: Ukraine, Poland, Estonia, Romania: Where to Build Your Engineering Team<\/a><\/p>\n\n\n\n Argentina\u2019s labor laws are pro-employee and comprised of public order rules. Thus, they cannot be ruled out, or waived by any agreement, applicable law, or jurisdiction clauses eventually included in any agreements. Therefore, Argentine labor law will apply (and Argentinian labor courts will have jurisdiction) in any eventual labor court claim filed in respect to work performed in Argentina.<\/p>\n\n\n\n There are also \u201cCollective Labor Agreements\u201d that determine labor conditions for employees. These are dependent on industry, company, and labor union. To have legal validity, they must be published in the \u201cBoletin Oficial\u201d.<\/p>\n\n\n\n To set up a business in Argentina, it is necessary to have a permanent or temporary residence permit. In order to hire foreign workers, the work contract must be in line with labor legislation requirements. Directors and Managers are exempted from the maximum working time of eight hours a day and 30 overtime hours a month.<\/p>\n\n\n\n While overhead and labor costs are lower in Argentina compared to the United States and Canada, social security costs constitute a sizable part of the cost of doing business in Argentina.<\/p>\n\n\n\n If your head office is based in the United States (or outside of Argentina), you will be able to pay employees or partners in Argentina after completing some registration processes. If you\u2019re a tech company, you may benefit from Argentina\u2019s Entrepreneur\u2019s Law, which promotes business registration in 24 hours.<\/p>\n\n\n\n If you don\u2019t qualify for the Entrepreneur\u2019s Law, don\u2019t fret \u2014 you just need to go through a few more steps. First, you\u2019ll verify your company name with the Office of Corporations. The National Bank must hold at least 25% of the initial capital, which has to be deposited beforehand.<\/p>\n\n\n\n Then, the company must publish a company notice in Boletin Oficial, incorporate and register with the Public Registry of Commerce, buy special books, and turn those in to the General Inspection of Justice. After the corporate manager gets a Fiscal Code for the company along with a tax ID, and registration is complete with the Unified System for Labor Registration, you can officially pay employees in Argentina.<\/p>\n\n\n\n Read More<\/strong>: All You Need to Know to Build an Engineering Team in Brazil<\/a><\/p>\n\n\n\n You can pay remote developers from Argentina using Xoom, Deel, Pilot.co, TransferWise, international wire transfer, Payoneer, and PayPal. A national bank account is another option. Tax advice is advised.<\/p>\n\n\n\n While Argentina\u2019s official currency is the Argentinian peso, developers may prefer to be paid in US dollars due to the volatility of the peso.<\/p>\n\n\n\n You can legally hire a remote developer to work for you without jumping through a lot of hoops (even fewer if they are an Argentinian citizen), but keep in mind that if he or she resides in Argentina and performs his or her work for you in the country, you will be subject to Argentinian labor laws and Argentinian labor courts, which are pro-employee and come with the employee benefits above.<\/p>\n\n\n\n Read More<\/strong>: How to Do Taxes When Hiring a Freelancer (Software Developer Clients)<\/a><\/p>\n\n\n\n In Argentina, meetings are often scheduled far in advance and punctuality is important. However, as in other countries, meetings may not begin and end at the designated time and displaying a sense of urgency may be viewed with mistrust or as rudeness. Therefore, when hiring and working with your remote developer, you should get a sense of their personal style and preferences, as well as make yours known.<\/p>\n\n\n\n In addition, during meetings in Argentina, people may interrupt one another. This is seen as a way of showing interest and enthusiasm rather than disrespect, which is a cultural difference<\/a> that you should keep in mind.<\/p>\n\n\n\n If you plan on working with your remote developer as a full-time, more permanent, employee, you should try to deepen your relationship by being talkative and transparent. For many Argentines (but not all), one\u2019s personal life and family are common discussion types. If you want to improve your relationship with your developer and facilitate team bonding (and only if they are receptive to this), you can initiate more personal discussions with them to make them feel included.<\/p>\n\n\n\n Argentinian developers expect 15 paid days off per year, according to Argentinian labor law. To remain competitive in attracting developers, companies generally improve on this minimum offer, including by offering unlimited leave. Should developers have to work on holidays, they can expect 100% of their regular pay on top of their normal salary.<\/p>\n\n\n\n Remote developers on a full-time, part-time, or contractor basis will expect full employment benefits according to Argentinian labor laws, including paid annual leave, 13 months salary, paid private healthcare, and paid sick leave.<\/p>\n\n\n\n While you may certainly offer additional perks, those are the baseline benefits any Argentinian developer receives, so you need to meet those benefits at a minimum. Note that paid sick leave for Argentinian developers is effectively unlimited, as companies will pay sick leave when a medical certificate is presented.<\/p>\n\n\n\n Read More<\/strong>: Top Benefits and Perks Companies Offer Remote Developers in 2022<\/a><\/p>\n\n\n\n Whether you hire a remote full-time, part-time, or contractor from Argentina, Argentinian labor laws require that you treat them like a full-time employee. However, there are exceptions for fixed-term and contract employees with regards to giving notice and benefits.<\/p>\n\n\n\n Note that trial periods can be up to three months for full-time or part-time employees. Termination during the trial period can be decided without paying any compensation or severance payment other than a 15-day prior notice and the due wages.<\/p>\n\n\n\n Read More<\/strong>: US vs International Developers: Do Overseas Developers Get a Bad Rap?<\/a><\/p>\n\n\n\n If you\u2019re looking to establish a tech hub outside of the United States or Canada, Argentina is a good candidate to consider. Argentina scores high in English proficiency and there\u2019s a good deal of overlap with the United States in terms of time zone, making it convenient to schedule meetings and scrums.<\/p>\n\n\n\n While Argentina\u2019s labor laws are more pro-employee compared to those of the United States, meaning that there\u2019s no at-will employment and employees are guaranteed a 13th-month salary, health insurance, and retirement, local developer salaries are a fraction of the cost of those in the United States, which balances out the cost of Argentinian social benefits.<\/p>\n\n\n\n If you\u2019re looking to hire a remote developer from Argentina, you\u2019ll have a large pool of STEM graduates to choose from. While part-time remote employees do receive the same benefits and protections as full-time employees under Argentine labor law, contract workers are not subject to the same legislation, which is something to keep in mind during the hiring process.<\/p>\n\n\n\n In addition, there are many payment options<\/a> when it comes to paying Argentinian remote developers, including Deel, Payoneer, TransferWise, and PayPal, making paying your developer relatively painless.<\/p>\n\n\n\n If you\u2019re considering building your tech hub in Argentina or hiring remote developers from Argentina and you have questions, we\u2019re happy to help with trying to answer them. Remember that you will need to seek professional advice specific to your situation if you seek to do business in another country. <\/p>\n\n\n\n You can also try <\/em>Arc<\/a>, your<\/em> shortcut to the world’s best remote talent:<\/em><\/p>\n\n\n\n \u26a1\ufe0f Access 450,000 top developers, designers, and marketers <\/a>Try Arc and hire top talent now \u2192<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Thinking about building an engineering team in Argentina? Here’s developer salary, regulatory environment, and other important info.<\/p>\n","protected":false},"author":4,"featured_media":222,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-49","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hiring"],"yoast_head":"\n
\u26a1\ufe0f Freelance or full-time remote + fully vetted<\/em>
\u26a1\ufe0f Save up to 80% with global hires<\/em><\/p>\n\n\n\nAvailability of STEM Talent<\/h2>\n\n\n\n
Developer Talent Pool<\/h3>\n\n\n\n
Existing Engineering Teams and Tech Hubs in Argentina<\/h2>\n\n\n\n
Google<\/h3>\n\n\n\n
Amazon<\/h3>\n\n\n\n
JP Morgan<\/h3>\n\n\n\n
Rappi<\/h3>\n\n\n\n
Despegar<\/h3>\n\n\n\n
Other Tech Hubs in Argentina<\/h3>\n\n\n\n
\u26a1\ufe0f Vetted and ready to interview<\/em>
\u26a1\ufe0f Freelance or full-time<\/em><\/p>\n\n\n\nTime Zone Overlap: Argentina vs United States Time Zones<\/h2>\n\n\n\n
English Proficiency in Argentina<\/h2>\n\n\n\n
Lifestyle in Argentina<\/h2>\n\n\n\n
Cost of Living in Argentina<\/h2>\n\n\n\n
Remote Developer Salaries in Argentina<\/h2>\n\n\n\n
Why Argentina is a Great Location for an Engineering Team or Hub<\/h2>\n\n\n\n
All About Employment in Argentina<\/h2>\n\n\n\n
Employee Benefits<\/h3>\n\n\n\n
Statutory Labor Requirements<\/h3>\n\n\n\n
National Holidays<\/h3>\n\n\n\n
Government incentives<\/h3>\n\n\n\n
Tax incentives<\/h4>\n\n\n\n
Ease of Obtaining Visas<\/h4>\n\n\n\n
Ease of Relocating Senior Staff<\/h4>\n\n\n\n
Regulatory environment<\/h3>\n\n\n\n
Legal System<\/h4>\n\n\n\n
Ability to \u201cDo Business\u201d<\/h4>\n\n\n\n
Making Payments as a Multinational Enterprise<\/h4>\n\n\n\n
Why Hire Argentinian Remote Developers:<\/h2>\n\n\n\n
Methods of payment<\/h3>\n\n\n\n
Cross-border payment options<\/h4>\n\n\n\n
Preferred currencies<\/h4>\n\n\n\n
The Legal Side of Hiring a Remote Developer from Argentina<\/h3>\n\n\n\n
Cultural Expectations<\/h3>\n\n\n\n
Employer-Employee Relations<\/h4>\n\n\n\n
Holidays<\/h4>\n\n\n\n
Benefits<\/h4>\n\n\n\n
Hiring a Full-time, Part-time, or Contract Remote Developer from Argentina<\/h2>\n\n\n\n
For a fixed-term contract:<\/h3>\n\n\n\n
For a temporary contract:<\/h3>\n\n\n\n
Is Argentina Your Ideal Engineering Team or Engineering Hub Location?<\/h2>\n\n\n\n
\u26a1\ufe0f Vetted and ready to interview<\/em>
\u26a1\ufe0f Freelance or full-time<\/em><\/p>\n\n\n\n