How to earn and save more money as a remote worker in LatAm

It’s 2022 and everyone’s talking about remote work. It’s here to stay and people are loving it. All around the world, more and more employers are embracing flexible schedules for their remote teams leading to new remote work trends and more remote work options.

Remote work doesn’t come without challenges. Individuals such as remote contractors, independent workers, and freelancers aiming to improve their professional and personal lives are faced with challenges as they seek to earn better salaries and improve their financial health.

If you’re a remote worker, you may have already asked some of these questions yourself. How do I earn more than the national average for my position? How do I maximize my earning potential for the skills I bring to the table? Are there better ways to get paid, save and invest my money?

Whether you’re a software engineer, a skilled freelancer, a creative, or someone simply looking to work for an international company (or already working for one), we’ve got good news for you!

Start working for an international company

It’s never been easier to land a job at an international company than it is today. As remote work continues to become the new normal and preferred by many, thousands of companies around the world are hiring skilled professionals beyond borders.

Today, it’s possible to find exciting roles in international companies that aren’t necessarily hiring for local talent. Plenty of startups and small and medium-sized businesses also find international, remote recruiting more cost-effective, especially when hiring contractors and freelancers. The best part of this is that these companies are usually willing to pay way above the national average of countries in Latin America.

Try using social media platforms such as Linkedin and job search spaces like Glassdoor to filter out what you’re looking for. Important keywords that will help you narrow your search include ‘‘remote’’, ‘‘contractor’’, ‘‘freelance’’, among others.

Choose the right employment framework

Some companies are fully set up to hire professionals in different countries as full-time employees under a normal payroll scheme (nomina) because they have their entity set up within the country they are hiring. An example of this is when a US company has offices and operations in Mexico and can legally hire Mexican employees under payroll, usually providing them with law benefits. Other companies that don’t have a legal entity set up within the country they are hiring can still work with an Employer of Record (EOR), a global employment services provider that helps employ people legally in other countries. EORs handle payroll, benefits, taxes, stock options, and local compliance.

If your hiring company isn’t able to provide the above options to have you registered under payroll they can still hire you as a contractor or freelancer. Contractors and freelancers can provide hiring companies services and invoice them bi-weekly, monthly, or per-project basis. For contractors or freelancers to be able to work this way, they need to be registered with their country’s national Tax Administration Service. For Mexican citizens and residents, this can be done through SAT by registering as a ‘‘persona fisica’’ or, natural person, under the new RESICO tax scheme. The RESICO is a new fiscal incorporation scheme that grants lower tax rates and the suspension of some fiscal obligations. Many contractors, freelancers, and remote workers are legally set up under the RESICO scheme and can work for and invoice international companies. Although they do not perceive most state and company benefits that most employees under full-time payroll schemes do, the amount of tax they are obliged to pay is significantly lower.

Ultimately, it’s up to you to choose the best employment framework that will suit you. Before accepting a job offer, be sure to ask your new employer about your employment framework and what you need to be aware of.

Negotiate your compensation & benefits package

No matter how you are officially employed, most companies still offer benefits and perks of some kind. Whether it be medical insurance support, yearly tuition bonuses, or access to a savings fund, be prepared to negotiate your benefits package based on what is most important for you. If you’re about to become a full-time contractor and won’t be formally offered private health insurance, ask to be paid a little more so you can cover that cost on your own accord. Also, consider other favorable, long-term benefits such as PTO, stock options, and bonuses.

Some benefits being offered may not be relevant to you and you can negotiate or ‘‘exchange’’ those benefits for something that better fits what you need. This is something important to bring up before accepting a job offer as a lack of basic benefits can cause you to eventually lose money, instead of maximizing it.

Get your own US Dollar bank account

Remote workers, contractors, and freelancers that are already working for international or US companies get paid in dollars - especially when they are not working under a payroll or EOR employment type. When these professionals get paid into their local bank accounts and currencies, a significant amount of money is lost due to hidden bank fees, service fees, and conversion rates. Many people don’t realize this or don’t give it much thought before accepting a job offer.

You can save a great deal of money by opening your very own US Dollar bank account, without even having to leave home. By having access to a US Dollar bank account, you can protect your money from negative currency exchange rates while avoiding hidden bank transfer costs when being paid internationally.