The 7 Best Cities to Do Business With in Latin America

By Craig Dempsey

In recent years, thanks to its proximity to North America, a large pool of inexpensive labor, low taxes, and large amounts of foreign investment, Latin America has become a key region for U.S. businesses looking to expand internationally. Not all countries in the region, however, are created equal, and some are easier to navigate than others. In this article, we outline the Latin American cities and countries that are the most conducive to doing business with, according to Statista's Global Business Cities Report for 2022.

Best cities and countries to do business with in Latin America

1. São Paulo, Brazil

Brazil has the largest economy in Latin America, as well as one of the largest economies in the world, which makes it one of the top destinations for foreign investment. Currently, a significant number of companies have established themselves in the city of São Paulo, taking advantage of the increase in startups and the growth of the consumer market.

Another important reason to consider investing in Brazil is the ease of access to international trade with the rest of the continent.

2. Buenos Aires, Argentina

The business climate in the city of Buenos Aires is quite favorable for foreign investors. It boasts significant investment in aerospace technology and the renewable energy sector. In addition, Argentina's access to human capital makes it an attractive place for investment. The country's agricultural sector provides avenues of investment in agribusiness, namely in wheat, corn, and soybeans.

3. Santiago, Chile

Chile is one of the highest-income countries in Latin America, making it one of the safest places in the region to invest in. The country has also negotiated 30 trade agreements that cover 70 markets and represent 88% of the world's GDP.

One of Chile's most important markets is mining, with vast reserves of gemstones and precious metals. In the agricultural sector, Chile stands out in the production of fruits and nuts, as well as timber.

4. Montevideo, Uruguay

Another attractive option for foreign investors is the city of Montevideo, Uruguay, thanks to its political and economic stability, as well as its well-managed health system.

In addition, Uruguay is considered one of the more developed countries in Latin America, due to its well-educated population and large labor pool, with no shortage of tech talent, lawyers, accountants, and business administrators.

An attractive feature for foreign investment is the high growth of high-value industries such as fintech and agritech, and the prevalence of English proficiency among Uruguayan professionals. Other important sectors that are ripe for investment in Uruguay include the pharmaceutical industry, textiles, wood, and cement.

5. Bogotá, Colombia

Thanks to its sustained economic development, Colombia has become one of the countries with the highest foreign direct investment. It is currently the fourth-largest economy in the region, and it is predicted to continue on a strong growth path over the next five years.

Colombia has 10 free trade agreements, which gives it easy access to millions of consumers in American, European, Latin American, and Asian markets. In addition, thanks to a large pool of skilled workers, there are significant investment opportunities in sectors such as pharmaceuticals, metals, textiles, and construction materials.

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6. Mexico City, Mexico

Mexico's capital is home to major financial institutions, which makes it an important destination for foreign direct investment. Mexico City's strategic location also is a plus for those who want to invest in the country. Large companies, such as Google and Facebook, have moved their operations to this great city, creating hundreds of tech jobs for Mexicans.

Mexico is an attractive option for foreign investors as it’s one of the easiest Latin American countries to domicile. In addition, Mexico has a highly skilled and competitive labor force.

Besides the capital, Mexico City, another Mexican city that has become a major attraction for foreign investment is Guadalajara, which is home to large technology companies such as Toshiba, Intel, and HP. The main sectors of foreign investment in Mexico are manufacturing, financial services, commerce, and mining.

7. Costa Rica

Costa Rica is not only one of the most attractive countries in Latin America because of its landscape and natural beauty, but also because of the multiple investment options it offers.

In the last two years, Costa Rica's immigration policies have improved to favor foreign investors and skilled workers. The country allows retirees, pensioners, and investors to live there and receive benefits, such as importation of up to two vehicles for family or personal use, without having to pay import, customs, or value-added taxes. Investors also can receive tax-free imports of instruments and materials for professional or scientific use, and tax-free imports of household goods for their homes.

Investors who wish to live in Costa Rica are required to invest no less than $150,000 USD in real estate, stocks, productive projects, or national investment projects; retirees must receive a monthly pension of no less than $1,000 USD in their country of origin.

Latin America is a great place to invest

In summary, Latin America is an increasingly attractive destination for foreign businesses. The cities and countries listed here are expected to sustain the flows of foreign investment and increasingly become destinations for company headquarters or satellite offices.

FAQs about doing business in Latin America

Below we have summarized the most important questions and answers on the subject.

Is Latin America good for business?

Thanks to its proximity to North America, a large pool of inexpensive labor, low taxes, and large amounts of foreign investment, Latin America has become a key region for U.S. businesses looking to expand internationally.

What are the major business opportunities in Latin America?

The many investment opportunities in Latin America include agribusiness, mining, timber, the pharmaceutical industry, textiles, cement, manufacturing, financial services, and commerce.

About the Author

Post by: Craig Dempsey

Craig Dempsey is the cofounder and chief executive officer of Biz Latin Hub, an organization dedicated to assisting investors in Latin America and the Caribbean via the likes of company formation and tax advisory, as well as through recruitment and payroll outsourcing. Craig holds a degree in mechanical engineering, a master’s degree in project management, and other certifications covering logistics, personal management and government administration. Craig is an Australian military veteran and has been deployed overseas on numerous occasions. He is also a former mining executive with experience in Australia, Canada, Colombia and Peru.

Company: Biz Latin Hub
Website: www.bizlatinhub.com
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