Obvious reasons:
Nearshore to EU, UK and US
In modern remote work, most of it is done autonomously. However, synchronous communication is sometimes useful. In order for this to take place, similar timezones are important. For instance, Brazil is only 3 hours behind the UK and 4 hours behind Central Europe, and only 2 hours ahead of New York.
Broad talent pool
Latin America is home for 670 million people, which is equivalent to 2x US population or 1.5x EU population. Although the most spoken language is Spanish and Portuguese, all South America countries surpass countries such as China, Japan, Indonesia and Egypt, and have a similar or higher score to India and United Arab Emirates in English proficiency according to EF EPI 2025.
Same price for more seniority
LatAm living costs are so cheap. While € 2,000 is the average monthly salary of a Junior developer in countries such as Portugal, Spain and Italy, this is equivalent to a Senior developer salary of R$ 13,000 in Brazil. Senior level developers usually have a decent English proficiency for technical-related vocabulary.